PHL stocks climb less than 10 points in moderate trading
Shares on the Philippine Stock Exchange managed to pull the main index less than 10 points up in moderate trading, as participants stayed on the sidelines waiting for the chance to lighten their positions.
“I would characterize today’s move as sideways,” said Jonathan Ravelas, chief market strategist for BDO Unibank.
“Not much action. Looking at 5,200 to 5,300 range,” Ravelas added.
“… We continue to see the bourse trading on a tight range with a downward bias as traders look for firm trading leads abroad,” according to First Metro Securities Brokerage trading in a note to investors Monday.
Players are also hesitant to initiate aggressive moves in the absence of clearer signals on how foreign fund managers are moving their money.
“On foreign funds, net inflows have noticeably weakened since July from what we saw in the first two quarters,” research analyst Ghia Paula Yuson told GMA News Online.
“I think monthly net inflow average for the first 6 months was around P4.77 billion,” Yuson noted. “Since July, the average has gone down to P390 million net inflow.
“But this is due to other factors such as lofty valuations, the ongoing euro zone fiscal crisis and the foreseen slowdown of the global economy,” she added.
The main PSEi advanced 8.4 3 points or 0.16 percent to close at 5,271.78
More than 1.124 billion shares valued at P4.239 billion changed hands during the morning and afternoon sessions.
Gainers led losers by a thin margin – 78 to 71 – while 41 issues closed unchanged.
In the research report “Market Call” for August, First Metro Investment Corp. (FMIC) and University of Asia and the Pacific (UA&P) said they “remain constructive on Philippine equities in medium- to long-term.”
But they “prefer to lighten positions in August on market strength.
“While we are on a view of strong local growth, market valuations have become ‘somewhat’ stretched,” they added.
“Unless 2nd quarter earnings come in well above expectations, it is hard to envision a sustained rally in Philippine risky assets,” First Metro Investment and UA&P said. — GMA News
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