Philippine shares seen consolidating further result


Given the absence of local leads, global developments may still dictate the fate of Philippine shares in the next trading sessions, which would most likely result in further consolidation given low turnover volume last week.

In a phone interview, Astro del Castillo, First Grade Finance managing director, said that the market may still continue to consolidate in the next few trading days after it registered a relatively flat turnover volume last week.

However, Jun Calaycay, Accord Capital Equities Corp. analyst, said in his weekly market outlook that the risk of price volatility has been greatly reduced except for intermittent knee-jerks as Friday’s action showed.

“Unless another round of surprises come out of the woodwork, we expect the market to trade positively through most, if not the entire week. As has been much since the slump, we have taken and continue to take the stance of buying on dips,” he said.

Calaycay even cited that the events of last week where global markets pushed higher on the back of generally positive feeds plus the onset of the earnings season in the local front should boost optimism within the local market.

“Expect market to remain range bound between 6,250 and 6,750 levels. If 6,750 is broken, the market may retest of the 7,000 levels,” Jonathan Ravelas, chief market strategist of BDO Unibank Inc., said.

Toward the end of the month, del Castillo, however, assured that the market may be more active given the entry of the corporate earnings season.

On Friday, the local stock market posted more gains, almost mirroring Thursday’s trend when the bourse was still lethargic but still somehow ended in the green.

The Philippine Stock Exchange index (PSEi) capped the previous week with a 2.60-percent increase, or 166.85 points to 6,574.21, while the broader all-shares index went up 2.71 percent, or 106.09 points to 4,025.69. The market also performed better on Thursday.

“A surge of buyers Friday pushed the PSEi to its third straight weekly gains, sustaining the prior week’s close above 6,500. The broader all-shares index posted a slightly better 1.3 percent advance to match the PSEi’s three-week rise. Financials were practically flat with a +0.2 percent advance while the mining and oil sector slipped 2.2 percent,” Calaycay explained.

Generally, the most actively traded stocks for last week were Philippine Long Distance Telephone Co., Metro Pacific Investments Corp., SM Investments Corp., Ayala Corp. and Ayala Land Inc.


Please follow our commenting guidelines.

Comments are closed.