Stocks to move lower on continued uncertainty
By Denise A. Valdez
Reporter
PHILIPPINE STOCKS are seen to trade lower at the close of the decade as uncertainty continues to loom until after the holidays.
The 30-member Philippine Stock Exchange index (PSEi) closed at 7,773.12 on Friday — up 119.18 points or 1.55% from the day prior. However, on a weekly basis, it shed 104 points or 1.33% due to declines in the industrials, financials and property sectors.
Value turnover last week stood at P10 billion in average, rising 56% from the week prior. Offshore investors became sellers with a foreign net selling of P1.18 billion from a net buying of P76 million in the previous week.
“Local equities took a beating throughout the week, after a plethora of headlines that clipped bulls’ momentum. Towards the end of the week, however, players shopped for bruised shares, ahead of the shortened trading week,” online brokerage 2TradeAsia.com said in a market note.
Heading into this three-day trading week to close 2019, the brokerage said chances are not so high for the local bourse to show an upturn.
“If this past week is of any indication, a widely-quoted line from a poem may offer a succinct answer: ‘Not with a bang, but with a whimper’,” 2TradeAsia.com said in the market note e-mailed Friday.
“Left to a shortened three-day trading week, improved volumes from funds’ window dressing will be balanced against those who will opt to wait out the Yule break,” it added.
2TradeAsia.com noted much of the heavy catalysts of the stock market are happening in 2020, hence some investors may choose to stay on the sidelines during this week’s trading.
In the international scene, it said US markets will continue being on the lookout for the impeachment case of President Donald Trump, which will be heard in a Senate trial in January.
In the Philippines, investors will be waiting for the resumption of session in Congress on Jan. 20, which will decide on key issues such as the raising of bank deposit insurance to P1 million per depositor and the franchise renewal of ABS-CBN Corp.
Other local issues that will be watched are the final implementing rules and regulations on real estate investment trusts and the water concession agreements of Manila Water Co., Inc. and Maynilad Water Services, Inc. These developments are likewise expected to unfold next year.
“As we ruminate on the growth story of the upcoming 2020s, a review of the 2010s reveals to us that stocks with sound revenue-generating models and consistent capital expansion programs, likely — and often — stand the test of time. Buy the dip,” 2TradeAsia.com said.
It put immediate support for the PSEi this week at 7,500-7,550 and resistance at 7,700.
