InterAksyon.com means BUSINESS
MANILA, Philippines – The stock market on Friday slid lower as worries about China's slowing growth gave investors reason to cash in.
The Philippine Stock Exchange index shed 1.08 points or 0.02 percent to 5,042.44. Losers beat decliners, 106 to 55, while share prices of 46 companies were unchanged. Trading value reached P6.18 billion as 4.36 billion stocks changed hands.
Jose Vistan, research manager at AB Capital Securities Inc., said Friday's slide was part of the market's mechanism of correcting itself after several weeks of continuously hitting record levels. Moreover, fears about China’s economy slowing down have given investors reason to take profits before next week's slow trading.
"China is the only economy right now that is pretty clean in terms of balance sheet and shows promise of good growth potential. Now with China slowing down must be taken as something positive," he said.
For one, this means that demand for commodities such as oil would not be as robust as hoped, hence, bringing down prices now that the world is beset with supply worries amid the Iran stand-off.
Another is that this would mitigate any asset bubble in China, especially in its real estate market, Vistan said.
Peso slightly stronger
At the Philippine Dealing System, the peso ended stronger against the US dollar on Friday as it closed at 42.955 from Thursday's 43.051. Total volume traded was lower at $932.760 million compared with the previous day's P980.520 million.
In its latest research note, Metropolitan Bank and Trust Co. said it has revised its exchange rate outlook forecast to P41.75 to a dollar this year, slightly lower than the previous forecast of P41.25 as risk aversion rises and investors buy into dollar-denominated assets.
While it has trimmed its forecast, Metrobank said it still sees the peso strengthening against the greenback, appreciating above 42.50 in the second quarter an anticipation of the surge in OFW remittances and "renewed" capital inflows.
"Moreover, the further liberalization of the BSP rules on foreign exchange transactions should provide support to the local currency," Metrobank said.
InterAksyon.com means BUSINESS
BUSINESS NEWS
