Philippine Daily Inquirer
9:42 pm | Sunday, December 15th, 2013
All eyes are on the US Federal Open Market Committee (FOMC) meeting this week as investors await the decision on the tapering of US monetary stimulus.
Last week, the main-share Philippine Stock Exchange index lost a total of 247.81 points or 4.1 percent to close on Friday at 5,767.13, wiping
out all gains for the year.
“We expect the coming week to be muted and lacking in direction as all eyes turn to the Fed’s meeting on Dec. 17-18,” said AB Capital Securities analyst Maria Arlysa Narciso. “A consolidation is not ruled out as we have no strong catalyst to move higher.”
Narciso said the main index could retrace its path back to 5,800-5,900 this week provided there was enough confidence in the market or in large-cap issues.
Joey Roxas, president of Eagle Equities Inc., said the market could move higher this week after last week’s bloodbath.
He said the index might aim for 6,100 as investors discount the US Fed’s tapering.
Seasonally, stocks tend to rise toward the end of the year, which dealers refer to as the “Santa Claus” rally. Some take position for the coming year while others embark on yearend window-dressing.
For AB Capital, the bleak to neutral outlook for the United States and the Philippines also bear weight on the PSEi.
“Since the second quarter of this year, the PSEI formed a descending triangle with its support at 5,880. Breaking the previous year’s close of 5,812.73, the next immediate support is 5,445,” Narciso said. “Yearend window-dressing may provide the final push that will let the PSEi close above 5,800 this year.”
She said the best action to take would be to see how the global markets would take the decision or outcome of the FOMC meeting this week. Doris C. Dumlao
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Tags: Business , economy , money , News , Philippine Stock Exchange , US Federal Open Market Committee
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