MANILA, 21 October — Hardly any change was felt on the Philippine market after it plunged to a ten-year low the week before mostly still on uncertainty over how the United States bombing of Afghanistan would end.
The market barometer nudged upward 0.15 percent as it closed at 1019.44 points.
Market turnovers were mixed although value turnover did register a drop of 72 percent to 1.5 billion pesos ($29 million) while actual trading fell 4.13 percent as only 1.18 billion shares changed hands.
Traders noted lingering worries on the local economy’s performance and the repercussions of the US-led strikes on Afghanistan. “There was some follow-through buying from last week but overall the Philippine market’s climb is still cautious,” said Oliver Plana, analyst of Asiasec Equities. “It’s just that we are coming from a low base and the selling last week was overdone.”
“Investors are hoping that we’ve seen the bottom, but we cannot give that conclusion because of the uncertainties,” Plana said.
Enrique Santa Ana, associate director for sales of DBS-Vickers Securities, said “what matters is if the volume is building up... There is still risk of a downside unless volume increases.” He added a convincing recovery would have to be accompanied by volume of at least 700 million pesos.
By midweek, concerns of a weak global economy and depressed earnings forecasts for local firms had not changed in any way and investors reversed the technical gains of Friday and Monday, brokers said.
“This is profit-taking. Finally, the market caved in to profit-taking after two straight days. Also, the same concerns are still there,” said KGI Securities Vice President for Sales Henry Ong.
Analysts said investors were unconvinced the market would hold steady amid uncertainties brought by the Afghan conflict.
“The early rally may be an indication of burgeoning demand with buyers wishing to take advantage of the low share prices. However, the market still has to show sign of stability,” said BPI Securities investment analyst Spencer Yap.
