MANILA, Philippines - Local stocks will continue to trade on a listless note this week as Spain’s mounting debt and fuel supply concerns put investors on the sidelines.
Freya Natividad of local stock portal 2tradeasia.com said investors’ attention will turn to President Aquino’s state of the nation address today and the expected release of earnings results by some listed companies.
“Measures that will help sustain the Philippine’s growth momentum will be carefully weighed in President Aquino’s SONA. Specifically, watchers might heed for indicative sequels to government’s thrust to pump-prime the economy via their triple-P (private-public partnership) initiative, and hasten investment and employment,” Natividad said.
Asian and Euro markets plunged last week amid worries Europe’s debt crisis is hindering global growth. Euro zone finance ministers approved to lend up to $123 billio to Spain to refinance its debt.
The Philippine Stock Exchange index (PSEi) closed 0.07 percent lower at 5,210.
Gregg Ilag, analyst at AB Capital Securities, said investors remained a anxious over the deteriorating US economy.
“The world’s largest economy is under the spotlight as the tepid recovery sparks the speculated additional monetary stimulus. Recent economic data has been weak,” Ilag said.
Natividad said the World Bank and International Monetary Fund’s economic outlook upgrade for the Philippines should trickle into corporate earnings growth estimates, specifically across large and leading second-tier shares. Among the sectors that are expected to benefit are power, financials, property and gaming, she said.