Stock market faces lack of local leads


Amid the absence of local leads, investors may still continue to fish for overseas leads as they go on another trading week in the local stock market.

Jonathan Ravelas, chief market strategist of BDO Unibank Inc., said in a text message that the market will continue to take cue from external events since there has not been any major lead being anticipated from the domestic scene.

“For this week, we will continue to see test of the 6,350-[point]levels. If broken, it may lead to further losses to 5,800 to 6,000 levels. Any rebound, if any, should be limited to 6,450,” he added.

Local stock market concluded the shortened trading the previous week in the red, as investors were seen to have been on a holiday mood ahead of the celebration of end of Ramadan, or the end of the annual Muslim fasting period.

Also, it was believed that overseas concerns have greatly affected last week’s trade, as investors got nothing to take hints aside from global developments.

“Positive US data risk early tapering as early as September. This caused the market to trade lower,” Ravelas said.

“The market was quiet again. It seems like most investors are already on a holiday mood given the long weekend as seen in the value turnover,” Astro del Castillo, First Grade Finance managing director, also said.

For her part, Elizabeth Abadillo, analyst at Angping and Associates Securities Inc., said in a report that the market was down on US Federal Reserve concerns.

The Philippine Stock Exchange index was flat on Thursday, falling 0.26 percent, or 16.56 points to 6,404.23, while the wider all-shares index shed 0.13 percent, or 4.93 points to 3,918.63.


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