Philippines share prices will take their cue from the US stock market amid the continuing global concerns over the credit problems in the United States, dealers said Friday.
They said the local bourse had failed to react to favourable local news as investors remain too caught up in fears over the tightening of the global credit market due to problems in the US housing market. For the week to August 17, the composite index fell 12.1 percent to 2,884.34 points, its lowest finish since December 27 last year.
Average daily turnover fell to 3.26 billion shares worth 4.3 billion pesos (91.8 million dollars) from 4.36 billion shares worth five billion pesos in the previous week.
"The Dow Jones Industrial average is close to an important support level at 12,800 level. A rebound in the US market will propel the local market back above 3,000." forecast Jose Vistan of AB Capital Securities. However, he warned that, "a break of the 12,800 support (level) can have disastrous consequences."