MANILA, Philippines (Xinhua) - The Philippine stock market opened the shortened trading week in the red but analysts say investors remain interested in the local equities.
The bellwether Philippine Stock Exchange index lost 0.11 percent, or 7.65 points, to close at 7,239.38 today, while the broader all-share index managed to snatch a gain of 0.02 percent, or 1.02 points, to 4,278.11. The local bourse was closed on Monday for a public holiday.
Trading volume reached 11.75 billion shares worth P12.68 billion ($283.22 million) with 98 stocks advancing, 70 declining, and 52 were unchanged.
Of the six counters, only the financials and the property sectors bucked the trend.
The composite index went to as low as 7,208, down by almost 40 points from Friday's close before buyers trimmed down the losses.
Online brokerage 2TradeAsia.com said the market may continue on its upward trajectory after the local central bank indicated that it has room to calibrate monetary policy.
"Manufacturing growth in August may also spur speculation the economy may get a further boost from the sector, while sustained appetite for Private-Public Partnerships (PPP) may also inspire buying, particularly in infrastructure firms participating in the program," it said.
PPP is a scheme which seeks to entice the private sector to undertake public infrastructure projects with the Philippine government. Currently, there are seven big-ticket projects that are subject to President Benigno Aquino III's approval.
AB Capital Securities, Inc., however, warned that the market is already "considered expensive" and this might have caused some investors to temporarily liquidate their positions.
"Fundamentally, the stock market is now considered expensive with a TTM P/E of 21.2xcompared to its historical five-year average of 16.7x. The current P/E is a few points away from the TTM P/E peak of 22.0x in May 2013," it said.
This week, the brokerage said investors will look at the September inflation data for hints on the local central bank's future monetary policy actions.
Stocks in the 30-company index closed mixed. Among those sold down were Ayala Land, Inc., Megaworld Corp., and Globe Telecom, Inc.