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August 04, 2015, Tuesday
  • Pampanga to experience power interruptions on Thursday. 2 hours ago |
  • Sen. Jinggoy Estrada says Binay’s ‘True State of the Nation’ or ‘TSONA’ reflects the real performance of the Aquino gov’t. 2 hours ago |
  • De Lima says DOJ has no evidence that will pin down House members to the alleged BBL payoff. 2 hours ago |
  • House Sgt. At Arms Radovan says their CCTVs store only 5 days worth of videos before these are automatically erased by the system. 2 hours ago |
  • House Sgt. At Arms Nicasio Radovan says CCTVs in Batasan Complex have no recording of alleged BBL payoff last May 25, 26 & 27. 2 hours ago |
  • Sen. Alan Peter Cayetano says Binay should release his ‘true SALN’ instead of delivering a counter-SONA. 2 hours ago |
  • DOTC Sec. Abaya hits back at Binay & says the VP does not understand the root cause of the MRT problem. 2 hours ago |
  • Comelec says the planned extension of campaign period will prevent candidates from abusing the election rules. 19 hours ago |
  • Comelec considers the extension of campaign period for local candidates from current 45 days to 120 days. 19 hours ago |
  • Comelec mulls the extension of campaign period from current 90 days to 120 days for national candidates. 19 hours ago |
  • Abad says Sec. Mar Roxas will step down once Pres. Aquino has found his replacement at the DILG. 19 hours ago |
  • Binay says more Filipinos have become poor & are experiencing hunger after 5 years under the Aquino administration. 19 hours ago |
  • Binay enumerated the alleged dismal gov’t response during the tragedies in Luneta, Zamboanga, Mamasapano & Tacloban during ‘Yolanda.’ 19 hours ago |
  • Abad says Binay had clapped his hands for the Aquino administration when he was part of it for the last 4 years. 19 hours ago |
  • Binay says MRT, BBL and DAP symbolize the huge failures of the Aquino administration. 19 hours ago |
  • Binay delivers his 40-minute counter-SONA in front of a jam-packed crowd in Cavite State University in Indang, Cavite. 19 hours ago |
  • Sen. Marcos hopes the bullet hole found in his satellite office has no link to the Senate BBL deliberations which he is leading. 19 hours ago |
  • Sen. Bongbong Marcos hopes that what hit his satellite office was just a stray bullet. 19 hours ago |
  • Police investigate a bullet hole found on Sunday at the satellite office of Sen. Bongbong Marcos along Roxas Boulevard. 19 hours ago |

Market seen trading weak on Korean woes

By Jenniffer B. Austria | Apr. 08, 2013 at 12:01am
The stock market is likely to sustain a downtrend this week, as investors monitor the escalating tension on the Korean peninsula and other negative developments overseas to justify the technical correction of the benchmark index.

PCCI Securities analyst James Lago said despite the technical correction last week, local stocks remained expensive compared with those of other Southeast Asian markets.

“The market is still very expensive so investors are using the increasing tension in North Korea and the problem in Cyprus as reasons for the market’s correction,” Lago said.

An analyst from a foreign brokerage house also said the lack of catalysts contributed to current lackluster trading while the upcoming election was diverting the government’s attention from implementing economic reforms.

“The market is still pricey versus other regional markets and investors are waiting for the correction before reinvesting in the market,” the analyst said.

The Philippine Stock Exchange index, the 30-company benchmark, ran out of steam last week in reaching the 7,000-point level, as the Cyprus bailout and North Korea’s nuclear threats eclipsed the euphoria brought about by the country’s first investment grade status.

The benchmark index, which reached a new intra-day high of 6,956.92 on April 1, fell 120.33 points, or 1.8 percent, to settle at 6,727.14 on April 5. The broader all-share index shed 38.35 points, or 0.9 percent, to close at 4,195.96 over last week’s five-day trading period.

Value turnover was lower as investors stayed on the sidelines due to the rising geo-political tensions that threatened the global markets.

AB Capital Securities analyst Abbygayle Estrella said the PSEi’s failed attempt to break through 7,000 points signified the strong, psychological resistance of the benchmark.

“Being the first to raise its credit outlook to the country, the effect of Fitch’s investment rating upgrade was short-lived because the market has been factoring it since last year. This, countered by the jitters from North Korea, had reverted the main index back to 6,700 from its sudden rise to 6,900,” Estrella said.

She said while the market continued on a downtrend, investors might do well to preserve their profits as market could still pull some surprise.

Trading will also be shortened this week as April 9, Tuesday, was declared a non-working holiday in observance of Araw ng Kagitingan.

“We still maintain our buy recommendations on our selected industry themes on banking, consumer, and gaming with the highest upside as of the recent closing, which are Security Bank Corp., San Miguel Pure Foods Co. Inc. and Belle Corp.,” Estrella said.
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