Market seen recovering as subprime crisis fades

Share prices are expected to see some recovery this week amid signs that the US subprime mortgage crisis is no longer worrying investors, dealers said.

They said the local bourse may revisit previous highs as problems associated with the subprime crisis are having little impact on local sentiment.

For the week to Sept. 28, the composite index rose 149.17 points or 4.4 percent to 3,572.90 points.

Average daily volume rose to 4.2 billion shares worth P4.3 billion from 3.24 billion shares worth P3.94 billion the previous week.

“I think there’s a possibility we may revisit previous highs as the US markets now present half a cup of optimism,” said Nestor Aguila of DA Market Securities.

“Investors are now back on track and focusing on the fundamentals of listed stocks,” said Astro del Castillo of the Association of Securities Analysts of the Philippines.

Castillo said he still expected the index to go to between 3,600 points and the 3,800-point level before the end of the year.

“On the local side, the subprime issue is really not affecting us. That is why we have been able to withstand foreign selling. Our domestic support is stronger,” said Francisco Liboro of PCCI securities.

“I am confident that we can hit the 3,770 level, and maybe even set a new one before the end of the year at 3,800 to 3,820 — depending on the strength of the economy,” he added. — AFP