The Philippine Stock Exchange index (PSEi) closed 2.61% lower to 4,321.73 last Friday, versus 4,437.55 a week before, while the broader all-share index fell by 1.47% to 3,010.28 from 3,055.23 a week earlier.
The panic selling that ensued after Standard & Poor’s cut the US credit rating to AA+, plus fears of a debt contagion in the euro zone, hurt the local market, brokerage firm AB Capital Securities, Inc. noted in a market report on Saturday.
This week might not be any different, although the market might open strongly after US markets closed higher on Friday on the back of positive retail sales data.
The Dow Jones industrial average climbed by 1.1% or 125.71 points to 11,269.02, while the broader Standard & Poor’s 500 index gained by 0.5% or 6.17 points to 1,178.81.
For last week as a whole, however, US markets were down, with the Dow Jones seeing four 400-point consecutive swings, the first in its history, amid fears of another global recession.
The local market will not be unaffected by what is happening in other markets and analysts said investors should be prepared.
Uncertainties remain a cloud overhead and we are not discounting sudden drops as the headwinds gain strength, However, strong fundamentals will cheer investors this week. “The local market is relatively stronger as our long-term uptrend remains intact and the main index is still above its long-term one-year moving average
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