Philippines share prices are expected to face another tough time next week, with investors looking for support from Wall Street amid continued concern over US sub-prime mortgages, dealers said.
They said much will depend on the US reaction to a key US employment report due out later Friday, with investors looking for some positive lead to help steady markets roiled by the problems in the US home loan industry. For the week to August 3, market fell 166.52 points or 4.73 percent to 3,352.24, its lowest finish since May 10 when it settled at 3,342.21.
Average daily turnover slipped to 4.44 billion shares but average daily value rose to 10.02 billion pesos (219.2 million dollars) from 4.64 billion shares worth 5.32 billion pesos in the previous week.
"Having pierced the 3,400 support level, we may see the market moving into positive territory over the next few trading days. However, any long-term up tick will necessarily depend on a similar recovery in US equities," said BPI Securities in a note to clients.
"Hopefully, if Wall Street stabilises (later Friday), we can see bargain hunters coming back in on Monday," said Jonathan Ravelas of Banco de Oro. "I still believe that, given our sound fundamentals, Philippine stocks will soon bounce back," he added. AB Capital Securities warned that "stocks will remain pressured due to the uncertainties surrounding the US sub-prime mortgage concerns.
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