Trading of local shares is likely to be subdued this week as the market continues to consolidate in the “ghost month,” with only strong earnings reports by some big tier-listed firms—Ayala Land, Ayala Corp., and GT Capital Holdings Inc—seen possibly giving the market any push.
“Our stocks are already on the expensive side,” said Victor Benavidez, nominee at Alakor Securities Corp. “Market consolidation is likely to take place.”
Most Chinese traders also sell off and close their positions in August, said another analyst, Victor Immanuel Felix of AB Capital Securities Inc.
Late July to August is also that time of the year when most fund managers in Europe and the US go on vacation.
“I think they will start trading again after August 20,” Felix said.
On Friday, the benchmark Philippine Stock Exchange Index added only 7 points or 0.9 percent week-on-week to settle at 7, 970.35. The lackluster performance was partly influenced by the poor first-half earnings report that the Philippine Long Distance Telephone Corp released last Tuesday, and its statement that regular dividend payout policy would be trimmed to 60 percent from 75 percent. The main PSEi fell 1.86 percent that day in reaction to that statement.
Average value turnover last week was low at P7.01 billion, but with net foreign buying still strong at P629 million.