SINCE same global concerns are expected to linger, the local stock market is still seen locked up in a seesaw movement.
In a text message, Elizabeth Abadillo, analyst in Angping & Associates Securities Inc., said that same global and local factors would keep on upsetting the market.
“For this week, market will consolidate with downward bias,” Abadillo said further.
Jonathan Ravelas, chief market strategist of BDO Unibank Inc. said that the market will go “sideways to down” this week still because of the Syria concerns and September taper talks.
However, Jun Calaycay, Accord Capital Equities Corp. analyst, notedthat a more aggressive push from United States President Obama during the G20 Summit and an apparent growing consensus among the delegates that the “world cannot stand idly by” make a military action in Syria a near certainty.
“If history holds, the start of such intervention should begin to ease excessive pressure on oil prices and stocks,” Calaycay said, adding that it will leave the Fed Meeting on September 17 to 18 as the remaining major uncertainty that has kept a lid on local equity prices.
From a technical standpoint, Calaycay further said that a three-week decline in the main index should invite more bargain hunters to the table, which should lend an upward bias to sentiments.
On Friday, Philippine shares concluded the session in the green after having to trade back and forth on the red side.
According to Abadillo, the market only went up slightly because most of the investors are still cautious on concern of Syria and the tapering stimulus, which were cited as the same reasons that have upset the market all throughout the week.
Philippine Stock Exchange index (PSEi) managed to cap the week on the green side, rising by 0.26 percent, or 15.40 points to 5,974.62. The wider all shares also registered slight gains, edging a bit by 0.09 percent, or 3.26 points to 3,659.73. MADELAINE B. MIRAFLOR