“Flat movements marked the PSEi (Philippine Stock Exchange index) for four straight days as investors remained jittery over the situation in Europe. Our market seemed to lose [even more] steam [given] the lackluster earnings of some companies,” said analyst Gregg Adrian R. Ilag of brokerage firm AB Capital Securities, Inc., in a market report last Friday.
Trading ended positively last Monday and Tuesday after US consumer sentiment rose and a new government took over Italy, the latest to be claimed by the fast-spreading euro zone debt crisis.
The gains were wiped out over the next three days, however, as skyrocketing borrowing costs for Italy offset the positive sentiment created by encouraging retail sales and jobless claims reports in the US, according to BPI Asset Management in a separate market report yesterday.
The PSEi lost 0.24% or 10.53 points, closing at 4,302.43 last Friday versus a week earlier.
The broader all-share index, however, rose by 0.24% or 7.31 points to 3,013.24 last week.
Europe’s troubles -- and a deadlock among members of a “super committee” tasked to cut the United States’ deficit -- brought Wall Street lower last week as well.
Blue-chip Dow Jones industrial average fell by 2.94% or 357.52 points, closing at 11,796.16. The broader Standard & Poor’s 500 index slipped by 3.81% or 48.19 points to 1,215.65, while tech-heavy Nasdaq composite index dropped 3.96% or 106.25 points to 2,572.50.
Asian markets slipped as well last week compared to the week before.
Last week’s tentative tone is expected to extend to this week.
“The PSEi is still staying above all the moving averages to close the week at 4,302 yet this doesn’t mean that we should be bullish after wading through a choppy market,” said analyst Bonner C. Dytoc, senior instructor at Absolute Traders and Consulting Services, Inc., in a market report last Friday.
For this week, the local market will continue to take cues from developments in the euro zone with the earnings season almost over and no other leads to trigger risk appetite, BPI Asset Management said.
Investors will check how newly appointed Prime Ministers Lucas Papademos of Greece and Mario Monti of Italy will push reforms and rebuild shattered investor confidence in the two debt-ridden countries, Mr. Ilag said.
He added a second estimate of US gross domestic product (GDP) data for the third quarter, due for release on Nov. 22, may boost investor confidence.
The US Bureau of Economic Analysis last month gave a preliminary estimate, which was based on incomplete data, of a surprising 2.5% quarter-on-quarter GDP growth.
Investors will also be watching out for a string of US economic indicators due this week, namely, producer price index, retail sales, industrial production, jobless claims, and housing starts.
“Utilities, retailers and commercial property developers and operators should come into investors’ radars this week as the year approaches its final month,” said analyst Justino B. Calaycay, Jr. of brokerage firm Accord Capital Equities Corp. in a market report over the weekend, noting these issues may benefit from the expected rise in consumer spending ahead of and during the Christmas holidays.
For analyst Freya B. Natividad of 2TradeAsia.com, infrastructure- and mineral-related stocks will be in play this week, and pegged initial support and resistance levels for the week at 4,250 and 4,350, respectively. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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