Stocks managed to gain last Friday after slumping for seven straight sessions but still, week-on-week, the main share Philippine Stock Exchange index (PSEi) was down by 0.95% or 40.84 points to 4,261.59, while the all-share index fell by 0.52% or 15.70 points to 2,997.54.
“The PSEi moved lethargically and dropped each trading day. Global woes remained the biggest drag as investors mulled over their implications on our economy,” said analyst Maria Arlysa E. Narciso of brokerage firm AB Capital Securities, Inc. in market report last Friday.
Last week in the euro zone, Italy and Spain’s borrowing costs rose dangerously high, while France was warned it could lose its triple-A credit rating. The crisis threatened Germany, the bloc’s strong economy, as investors stayed away from its auction of 10-year bonds.
Local developments made minimal impact on the market’s performance last week. The Bureau of Internal Revenue was able to hit its collection target for November, putting it closer to its target for the year, while former president Gloria Macapagal-Arroyo was charged with electoral sabotage.
US markets fared no better, sinking lower week on week, with blue-chip Dow Jones industrial average slipping by 4.78% or 564.38 points to 11,231.78 and the broader Standard & Poor’s 500 index shedding 4.69% or 56.98 points to 1,158.67.
Continued market weakness is expected this week, with no resolution in sight for the protracted euro zone debt crisis.
“We are expecting weak activity in the market to persist. If Europe cannot get its act together and agree on how to contain the debt situation, the effects may just continue to spill over,” Ms. Narciso said.
“Quite fortunate for the Philippines, we do not have substantial exposure to the region, except perhaps our exports sector. With the weakness in Europe, US and our Asian neighbors China and Japan, our exports sector is one area that could take a hit since the mentioned economies are our trading partners,” she added.
“With the way the index is now behaving, we should be careful in going long at this point,” said Bonner C. Dytoc, senior instructor at Absolute Traders and Consulting Services, Inc., in a market report last Saturday.
“What we hoped to happen to make our market bullish once again did not materialize.”
Nevertheless, an analyst said investors may still look forward to technical rallies as markets find room to correct amid consolidation.
“Technical rebounds may still be seen [this] week,” noted analyst Freya B. Natividad of 2TradeAsia.com in a text message sent late last week.
“For [this] week, there might be some recovery given the short trading period,” she said, noting the national holiday on Wednesday.
“Stocks that may be in play this week are those that will be included in the MSCI (come Nov. 30), and also mining stocks,” said analyst Elizabeth S. Abadillo of brokerage firm Angping & Associates Securities, Inc. in a text message yesterday, adding that some window dressing might occur.
Meanwhile, investors are expected to watch out for the following economic data from the United States: new home sales, pending homes sales, consumer confidence and jobless claims. Feel free to forward this Op Ed and follow our Blog stock market news today
Related Post:
Philippines stock
- GT Capital ipo shares release date
- Philippine Stock Exchange index (PSEi) open feb 21 2012
- Philippine Stock Exchange Index (PSEI) outlook feb 6 2012
- Philippine Stock Exchange january 30 2012
- Philippine Stock Exchange (PSE) january 2 2012
- Philippine Stock december 12 2011
- Philippine stock market december 1 2011
- Philippines Market factors to watch Nov 25 2011
- Philippine Stocks Preview sept 20 2011
No comments:
Post a Comment