Stocks may drop as mart checks typhoon damage
By Denise A. Valdez, Senior Reporter
THE LOCAL MARKET is expected to decline when it reopens on Friday as investors continue to secure profits from the recent climb of the main index.
The Philippine Stock Exchange (PSE) was closed for trading on Thursday due to bad weather brought by Typhoon Ulysses in several parts of Luzon. The PSE index (PSEi) ended Wednesday’s session down by 11.22 points or 0.15% to close at 7,024.26. The day prior, it soared 349.63 points or 5.23% to reach its best close since February.
“With the market at overbought status after the big run-up, we may continue to see profit taking as the market resumes tomorrow (Friday),” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message.
Some consolidation may happen, however, due to expected net buying among foreign investors, Mr. Pangan said.
“Better consumer spending going to the fourth quarter, with the influx of bonuses, stronger remittances, and holiday shopping, (should also help sentiment),” he added.
But the typhoon that left several parts of Luzon flooded and destroyed may weaken sentiment depending on how much damage it did, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said.
“Tomorrow (Friday), investors will gauge how much damage the typhoon (left in) the Philippines,” he said in a mobile message on Thursday.
As the typhoon hadn’t left the country’s area of responsibility as of yesterday afternoon, investors may wait it out until the government can release estimates on how much damage it caused, Mr. Limlingan added.
Prior to Typhoon Ulysses, the Philippines was also affected by Typhoon Rolly early last week, which caused some P5.79 billion in farm damage as of a Thursday estimate from the Agriculture department.
“Aside from this, attention will still be focused on the progress of the vaccine development as well as economic data coming in locally and globally,” Mr. Limlingan said.
Meanwhile, Asian shares pared their gains in choppy trade on Thursday as investors awaited further details on whether drugmakers can develop a coronavirus vaccine, Reuters reported.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.06% to 609.41, which is near its January 2018 high of 617.12. Chinese shares erased early gains and fell 0.02%. Stocks in Japan hit a 29-year high.
US stocks were mixed as investors switched back to technology stocks and away from economically sensitive sectors as they weighed COVID-19 vaccine progress and the likely timing of an economic rebound.
The Dow Jones Industrial Average fell 0.08% on Wednesday, but the Nasdaq closed up 2.01%, and the S&P 500 gained 0.77%. — with Reuters
