Erratic trading seen as investors brace for ’17
Philippine Daily Inquirer
02:38 AM December 05, 2016
https://business.inquirer.net/
Volatile trading would likely persist through this week, with the absence of major drivers, as investors look toward 2017, a stock brokerage firm said.
The benchmark Philippine Stock Exchange index (PSEi) was down just 0.04 percent last week to settle at 6,886. 74. Foreigners were net sellers to the tune of P430 million.
Trading the previous week was dictated by broader developments overseas. The Organization of the Petroleum Exporting Countries agreed to cut production by 1.2 million barrels per day, sending crude oil prices to breach the $50 per barrel level and causing jitters across foreign markets.
“The impact would likely be visible on listed firms’ logistics cost, specifically for consumer, transportation and construction-related plays. Utilities are more on neutral soil, given their ability to pass-on foreign currency differential adjustments (FCDA) in their tariffs,” 2Trade said.
It added investors were also closely watching inflation data for this month, which is a period marked by increased spending.
“In light of local monetary policies, players might give more credence on BSP’s (Bangko Sentral ng Pilipinas) ability to maintain rates, which again, might be dependent on the Fed’s last action before 2016 closes,” it said.
It also forecast that the Philippine peso against the US dollar could go “sideways as OFW remittances start to trickle in with the Yuletide holidays.”
“The PSEi might go through choppy trades this week in the absence of leads, although some local fund managers might seize on the latest decline to position for 2017,” 2Trade said.
