PH SHARES WEEKLY OUTLOOK

Window dressing for last 2 trading days of 2015

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The stock market could see some gains this week, analysts said, with support coming from window-dressing during the last two trading days for the year.

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Alexander Adrian Tiu, equity analyst at AB Capital Securities Inc., said trading at the Philippine Stock Exchange (PSE) could be “flat to bullish” on Monday (December 28) and Tuesday (December 29).

“We should expect window dressing this week,” Tiu said, adding that volumes will likely be low as most investors remain in holiday mode.

The PSE index (PSEi) climbed by 0.52 percent or 36.24 points to 7,002.42 last December 23, ahead of the December 24-25 Christmas break, while the All Shares index also increased by 0.61 percent or 24.19 points to 3,994.66.

Trading will again be shortened this week with the country marking Rizal Day on December 30 and New Year’s Day on January 1. December 31 has also been declared a special non-working day.

Trading will resume on January 4, 2016.

For next year, 2TradeAsia.com Investment Analyst Jason Escartin said local stocks could be subjected to selling pressures.

“An overwhelming number of stocks are trading below their 200-day volume weighted moving averages, suggesting underlying sentiment may be bearish going into the New Year,” Escartin said.

“Net foreign selling in this month so far has reached P6.13 billion with year-to-date net selling at P59.1 billion, compared to net buying of P55.45 billion in the whole of 2014,” he added.

Jonathan Ravelas, BDO chief market strategist, has said the main factors that could move the stock market for next year would be corporate performances, the gradual increase in the interest rates promised by the US Federal Reserve and a boost from the election spending in the first half of 2016.

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