MANILA, 24 June — The Philippine market experienced listless trading last week, because of the hostage situation in the southern Philippines and also because of lack of news on the economic front.
The market barometer closed the week at 1,439.77 points after losing 2.76 percent or 39.53 points. “The market continued to consolidate due to lack of fresh leads both on the economic and corporate front. The peso remained weak. The Fed cut could hopefully give us a shot in the arm,” said A&A Securities research head Astrolito del Castillo.
Albert Chua, fund manager of All Asia Asset Management which handles 150 million pesos of funds, said the weak peso remained an overhang in the market.
The peso clawed off its lows on the back of rumors the Bangko Sentral ng Pilipinas was in the market to support the local currency. It closed the week at 52.21 pesos=$1 after opening the week at 51.59 pesos against the dollar.
“The currency continues to be weak. For a market to be strong, one indication is the performance of the currency that will dictate the investment flow,” Chua said.
“Another concern is the peace and order situation.” Traders said the market was going through a rotational buying process wherein the third liners were moving up and the second liners and the blue chips were consolidating.
Value turnover went down 7.94 percent to 2.92 billion pesos or $57.25 million. Volume turnover registered an increase of 27.2 percent to 5.16 billion shares.
BPI Securities stock analyst said the market might continue to remain weak in coming days. Other analysts said that next week will probably see some end-quarter window dressing. — Julie C. Javellana
