PH stocks seen trading sideways
Philippine stocks might continue to trade sideways next week as the disappointing third-quarter economic data would still temper market optimism.
Rastine Mackie Mercado, research director at Chinabank Securities Corp. said that while Friday’s plunge could entice investors to pick up cheap stocks on Monday, many would remain cautious.
“[There will be a] pivotal week ahead as [the Philippine Stock Exchange] index could test the 5,700 support level even as prevailing valuations attract bargain hunters,” Mercado said in an email.
“We think investors will initially adopt a wait-and-see mode as they monitor lingering selling pressure following the lackluster [third-quarter gross domestic product) print,” Mercado said.
This was echoed by Philstocks Financial Inc. assistant research manager Claire Alviar, saying “negative sentiment continues to weigh on investor confidence.”
The PSEi index saw its weakest finish in three years last Friday, diving to the 5,700 level.
The bloodbath came as the Philippine economy expanded by just 4 percent in the July to September period, the slowest pace in four years.
This, as the multibillion-peso corruption scandal in the government led to tighter state spending as well as “softer consumption.” These, amid the collapsing confidence of businesses and consumers, according to Ron Acoba, chief investment strategist at Trading Edge Consultancy.
The corruption mess covering flood-control projects triggered a series of congressional probes, Contractors and even government officials have been linked to the controversy.
