Stock investors anticipating new catalysts

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Setting aside global movements, investors may start looking at new set of catalysts inside the country for the stock market to move forward.

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Some of the catalyst that market participants may start looking forward to, as cited by Accord Capital Equities Corp. analyst Jun Calaycay, are the fourth quarter 2013 gross domestic product (GDP) result and fourth quarter 2013 corporate earnings, among others.

“Concerns over fourth quarter 2013 GDP is heightened by varying ‘guesstimates’ on how [Super Typhoon] Yolanda has impacted the numbers. However, the results of the first three quarters [January to September] placing GDP comfortably above the 7-percent line provides sufficient buffer and almost guarantees the full year numbers will end close to the upper end of,if not above the,government’s official targets of between 6 percent and 7 percent,” Calaycay said.

“The first quarter numbers will be a ‘make-or-break’ point for the market,” he added.

Calaycay also took note of the earnings of listed companies during the fourth quarter and full-year 2013 as one of the leads that investors may also start considering.

“All the market needs is a strong, positive catalyst that can push the index past the first major [medium-term] target of 6,250 [points],” he further commented.

For the next few trades, Jonathan Ravelas, chief market strategist of BDO Unibank Inc., said, “Continue to expect the PSEi [Philippine Stock Exchange index] to range between the 5,800 to 5,900 [-point] levels. Risk lies at the break below 5,700 [-point] levels.”

On Friday, the first full week trade of 2014 ended, but the PSEi failed to go nearer the 6,000-point level.

“Overall, sentiments remain to be neutral with the limited value nearly divided between the bears and the bulls. We can fairly expect this condition to persist as we move deeper into January trades,” Calaycay said.

The PSEi dipped further on Friday, falling by 1.59 percent during the last session for the week, or 94.63 points to 5,842.88, while the wider all-shares barometer went down by 1.26 percent, or 45.74 points to 3,597.31.

After a slight improvement on Wednesday, Philippine shares retreated again on Thursday as market participants failed to find new leads.

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