Philippines shares seen consolidating after volatile week

04 Dec, 2006

Philippines share prices are expected to consolidate in the coming week following volatile trade this week, with no major news on the horizon to give the market direction, dealers said Friday.
Despite a slump earlier in the week and up to the release of disappointing economic growth figures on Wednesday, they said underlying sentiment was still strong enough to support a strong bounce Thursday which limited the overall losses.
The market had slumped after the government said economic growth in the third quarter was a disappointing 4.8 percent year-on-year, compared with forecasts for 5.2 percent.
There was no trading on Friday which was a national holiday.
For the week to December 1, the composite index fell 29.38 points or 1.04 percent to 2,788.46 points.
Average daily volume was 2.83 billion shares worth 2.76 billion pesos (55.57 million dollars) after 3.74 billion shares worth 2.49 billion pesos the previous week.
"The strong gains and higher turnover (on Thursday) is a positive sign, indicating a test of the 2,800 (points level)," BPI Securities said in a note.
"The market is expected to slow down after a relatively volatile week. There is a strong possibility that volatility will decrease and prices will stabilise in the near-term," said AB Capital Securities Inc in a statement.
"In terms of catalyst, there will little to look forward to after the release of third quarter corporate and economic data. There is no strong bias in the short-term," it said, putting the trading range at between 2,750 and 2,850 points.

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