Market seen to continue downward trend

The downward trend in the local stock market is likely to continue this week amid persistent fears of a worsening financial meltdown and soaring oil prices.

For the week to July 18, the main composite index fell 1.99 pecent or 48.47 points to 2,389.52 while average daily turnover dropped to P1.83 billion from P1.91 billion.

“The PSEi is still on its downward trend and could remain so until next week, “ said AB Capital Securities in its online weekly market report.

Investment stock portal 2tradeasia.com said the Bangko Sentral ng Pilipinas move to hike rates by half a percentage point might cap aggressive rises although the move managed to tame the peso’s weakness.

The move has affected by the property sector which declined by 4.66 percent due to concerns that the interest rate hike and reduced consumer spending would lessen the attractiveness and profitability of real estate properties and make loans more expensive.

Given the absence of fresh leads, all eyes will be on the second quarter earnings results from listed corporations.