Stocks seen to slip in listless trade this week
MANILA, Philippines - Local stocks are expected to slip in listless trade this week, with a slight negative bias on lingering concerns over the health of the US economy and uncertainties on the local front.
The main composite index rose 24.5 points or .80 percent for the first trading week of 2010 to close at 3,077.18 despite the absence of fresh leads from abroad.
Stock investment portal 2tradeasia.com said interest in stocks would stay selective, especially for stocks that are primed for acquisitions, partnerships and/or mergers.
Prince Anthony Yeung of AB Capital Securities Inc. said some investors are likely to adopt a wait-and-see stance pending the outcome of the May 2010 Presidential elections.
“While the upcoming elections are expected to run smoothly, which is beneficial to the stock market, the economic initiatives of the eventual winner will provide a clearer picture of where the economy will be headed. In line with this, investors are still cautious as to the type of growth companies can achieve this year.
Investors may want to wait for further developments (for example, the full-year performances of the listed companies) in order to make better decisions in what stocks to buy,” Yeung said.
Aside from the upcoming Presidential elections, investors are also monitoring the performance of listed companies. For this week, stock market players are expected to watch for the release of remittance figures for November 2009 scheduled this Friday.
Last week, MRC Allied Industries took centerstage with its share price hitting a 52-week high of P0.88 before closing lower to P0.62 Friday following its announcement that Lucio “Bong” Tan Jr. would acquire majority control of the listed property holding company in a deal valued at over P3 billion.
Liberty Holdings Inc. also saw its share price surge to a new 52-week high after six months. From a high of P4.15, the stock closed at P3.75 each share Friday.
Metro Pacific Investments Corp. which had been trading lower after making a string of purchases, rallied last week to close at P2.95 each share
Yeung said another issue that could see little upside is San Miguel Corp. as major shareholderTop Frontier makes a tender offer for the remaining shares held by minority investors at P75 each share. San Miguel closed at P72 apiece Friday. “This presents an opportunity to make a small profit by buying the stocks at current prices and selling them at P75 when the tender offer is conducted,” he said.
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