Market seen sluggish this week

MANILA, Philippines – The stock market is expected remain in sluggish mood this week given a shortened trading week and lack of fresh leads to spur buying appetite.

Last week, the main composite index closed 24.49 points, or 0.80 percent, lower at 2,908.50, following the US market’s decline on renewed concerns about the US economy.

“Despite Friday’s relative strength, and the minimal change week-on-week, the index, over the near-term remains on a bearish trend,” said Jun Calaycay of Accord Capital Equities Inc.

Small cap third liner issues continued to take centerstage last week as investors joined the race for quick hit profits from the stock market. Among these stocks include Atok Big-Wedge, Asia Amalgamated, Vitarich, and Medco Holdings.

Buoyed by sharp gains from Philex Mining Corp., the mining/oil index surged 9.9 percent or 796.86 points to end the week at 8,857.55. Philex grew 19.8 percent week-on-week on heavy foreign purchases, closing at P11.50 each share.

The property index suffered the biggest drop last week on concerns that the bottoming interest rates and a higher inflation could dampen buying demand.

AB Capital Securities said the country’s ballooning budget deficit could keep some investors on the sidelines. “The budget deficit is a major concern as the ceiling keeps getting higher and higher. Some foreign institutions have pegged the deficit to reach over P300 billion,” AB Capital Securities said.