Local shares face testing week ahead

MANILA (AFP) - Philippine share prices may find some support on some bargain-hunting next week after falling to their lowest level in over a month but will be tested by offshore developments, dealers said Friday.

The market fell a sharp 3.8 percent on Friday after heavy losses on Wall Street, partly over US housing and credit market concerns, sparked a global equities sell-off.

Much will depend on how New York fares later Friday and early next week.

For the week to July 27, the composite index fell 219.52 points or 5.87 percent to 3,518.76 points for its lowest finish since June 7, when it settled at 3,528.79.

Average daily turnover rose to 4.64 billion shares worth 5.32 billion pesos (116.45 million dollars) from 4.48 billion shares worth 4.98 billion pesos in the previous week.

Some dealers welcomed the downturn as a welcome correction to an overbought market.

"The correction will be good for the local market because ... it is a good time to adjust some of the excesses (in prices) in both global and local markets," said Jovis Vistan of AB Capital Securities.

"It will be a good opportunity for investors to accumulate shares because they have fallen sharply," said Gomer Tan of Regina Capital Development Corp.

"I am optimistic that next week, we will be moving up. I don't think the market will be falling further," he said, remarking that it "has already absorbed the impact of the slowing home sales in the United States."