PSEi ends flat ahead of 'ghost month'
The Philippine Stock Exchange index went up 2.06 points or 0.04 percent on Wednesday to close at 5,161.8, days before the “ghost month” of August sets in.
Chief market strategist Jonathan Ravelas at BDO Unibank said the slight increase is a mere “technical rebound” with the market practically going sideways.
Ravelas said investors remain wary of the eurozone crisis, noting that the lack of new leads kept the market from rallying at a faster pace.
Historically, the market slows down as August draws nearer, when Chinese investors traditionally take a break from trading, Equities analyst Gregg Ilag at AB Capital Securities Inc. said.
“Some foreign investors may not be buying shares in anticipation of the ‘ghost month,’” Ilag added.
Thus, August is an opportunity for investors to buy shares at cheaper prices.
Ilag also noted slight increase in the index today reflects the clash of investor sentiment over the eurozone crisis and prospects for second quarter earnings.
The main index could range from 5,100 to 5,300 in the next two to three weeks, AB Capital’s analyst noted.
More than 1.257 billion shares valued at P4.194 billion changed hands during Wednesday’s session.
Loser led gainers 77 to 76, with 46 issues unchanged. — VS, GMA News
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