InterAksyon.com means BUSINESS
MANILA - Philippine share prices are forecast to move sideways as investors may continue to shy away from equities amid lingering uncertainty in Europe.
"Directions would only clear after Greece holds its elections mid-June, providing more time for bargain fishers to wait," said Freya Natividad, investment analyst at 2TradeAsia.com.
A Greek exit from the 17-nation euro block may continue to drag the market as headlines about weakness in Spain may also add to the anxiety, fuelling worries of an expanding euro zone crisis.
On Friday, Standard & Poor's cut its ratings on the credit-worthiness of five Spanish banks, with Madrid set to infuse up to $24 billion into Bankia in what can be the largest bank bailout in that nation's history.
This prompted profit-taking on Wall Street as the Dow Jones Industrial Average fell 74.92 points, or 0.60 percent, to 12,454.83
“In the meantime, funds flow might center at the foreign exchange market as Greece’s concerns provide added volatility to the euro," said Natividad.
AB Capital Securities Inc. noted that foreign funds have been taking profits, which is reflected in the depreciation of the local currency. The exchange rate has dropped to P43.95:$1, deprecating by 4.13 percent month-to-date on hot money outflows.
At home, investors will closely watch how the Senate would end the impeachment trial of Supreme Court Chief Justice Renato Corona, including Anti-Money Laundering Act provisions on dollar deposits, Natividad said.
Activity may slow further this week as foreign institutional players leave for their weekend break in celebration of US Memorial Holiday, she added.
"The PSEI’s immediate trading range is seen to linger between 4,860 [and] 5,030. Near-term selling pressure seems to have tapered off as shown by the flattening medium term moving average," said AB Capital.
Last week, the Philippine Stock Exchange index staged a technical rebound to post a modest weekly gain of one percent.
InterAksyon.com means BUSINESS
BUSINESS NEWS
