Philippine benchmark stocks will be very much affected this week by overseas jitters over the United States (US) debt ceiling issue.
Michaelangelo Oyson, BPI Securities Corp. chief executive and managing director, told reporters over the weekend that the local stock index is poised to go “sideways to weakness” this week over the US debt ceiling issue.
For his part, research head Rafael Supangco of Angping and Associates Securities Inc. said in a text message that investors would be watching the US government’s decision on the debt ceiling concerns.
“Next week, investors will still be looking at the indicators of what the US government’s action will be as it nears the debt ceiling,” he said.
Harry Liu, president of Summit Securities Inc., told The Manila Times that the declines in the four trading days of last week was caused primarily by some technical resistance in local and global markets.
On Friday, the Philippine Stock Exchange index went down by 0.43 percent, or 27.65 points to 6,379.81, but the broader all-shares index went up by 0.25 percent, or 9.65 points to 3,850.13.