MANILA, Philippines - The local stock market could witness yet another lackluster week of trading ahead of the Christmas holiday.
Last week, the main composite index fell 14.14 points or 0.47 percent to close at 3,016.99 following a similar decline in the US markets due to uncertainty over the health of global economies next year.
Prince Yeung of AB Capital Securities expects market trade to be thin and slow during this three-day trading week due to lack of exciting leads on the local front.
“There are little catalysts left that can significantly move the market in the last trading days. Investors will make moves, albeit small ones, to position themselves for 2010. The trend of thin trading will persist in the last few trading days and the market will end the year between 3,000 and 3,050,” Yeung said.
Trading was thin throughout the week as an average of 2.55 billion stocks valued at P2.76 billion changed hands each day.
“While the local stock market may seem like it is unsure of which direction to take, investors are selling. Decliners beat advancers in every day of the week despite the PSEi going up thrice this past week. Investors seem to be unwinding their positions in order to get a fresh start next year. Also, majority of stocks have gone up by impressive figures during the course of the year, fueling profit taking before the Christmas vacation kicks in,” Yeung said.
Stock portal 2tradeasia.com said trading might be limited to large-caps as players balance portfolio returns versus near-term risks.
Stocks with planned share buyback programs and those that are target for takeover could attract attention.
Yeung has advised investors to take a look at Security Bank, Rizal Commercial Banking Corp., Aboitiz Power and Energey Development Corp. due to their strong fundamentals.