Uncertainty over political and economic developments and a lack of fresh leads were expected to dominate trading on the Philippine stock market this week, dealers said. "Given these political and economic uncertainties, and the market's overbought condition, we may see a further correction in prices on Monday," said Ron Rodrigo of Accord Capital Equities. Rommel Macapagal of Westlink Global Equities added: "The market's direction will depend on fresh developments that may crop up ... Investors may also take their cue from US markets in the absence of fresh leads here." Among the issues worrying the market are the possible impact of the new value-added tax legislation, higher public transport fares, and a possible increase in wages, Rodrigo said.
There are also concerns over opposition-led charges that the husband and son of President Gloria Arroyo are allegedly linked to the operations of an illegal numbers game. Arroyo has shrugged off the accusations.
For the week to May 20, the Philippine Stock Exchange composite index rose 4.34 points or 0.23 percent to 1,886.73 points.
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