Odette impact, Omicron worry market

The stock market will likely trade sideways during shortened trading week on thin volume as investors weigh the impact of Typhoon Odette and the spread of the Omicron variant on the Philippine economy.

Analysts said Omicron was casting dark shadow over the near term period. The recent increase in COVID-19 cases and the positivity rate in the country due to increased social gathering and reunions taking place during the holiday season are also causing a concern.

Fears over the severe impact of the recent typhoon on the economy, especially on the agriculture sector, have made investors tentative.

The government earlier reported that the agricultural damage caused by the onslaught of Typhoon Odette had reached more than P3 billion.

The 30-member Philippine Stock Exchange Index last week slipped 1.6 percent to 7,181.86, while the broader All Shares Index dropped 0.8 percent to 3,822.26.

Except for the mining and oil index which rose 1.2 percent, all other subindices posted week-on-week declines. Holdings firms fell 2.2 percent, services retreated 1.9 percent; property slumped 17 percent, financials decreased 1.2 percent and industrial dipped 0.02 percent.

Foreign investors were net sellers for the week by P530 million, while the average daily value traded fell to P5.2 billion from the previous week’s average of P25.5 billion.

Weekly top price gainers were Shakey’s Pizza Asia Ventures Inc., which climbed 9.7 percent to P10.40 after the company reported it acquired Potato Corner, while AC Energy Corp., rose 6 percent to P11.26.

Weekly top price losers were DITO CME Holdings Corp., which fell 6.5 percent to P5.09; Globe Telecom Inc., which decreased 4.7 percent to P3,360; and JG Summit Holdings Inc., which dropped 4.3 percent to P53.50.

World stock markets, meanwhile, wavered Friday in subdued Christmas Eve trade as investors mulled over receding Omicron coronavirus fears, with European bourses wrapping up early before the long holiday weekend.

Asian equities mostly rose in thin volumes after Wall Street finished its trading week Thursday with strong gains on solid economic data. With AFP

The London and Paris stock exchanges ran out of steam in a half-day session with traders somewhat wary over more possible restrictions to curb Omicron.

“Markets… remain reticent today due to lower volumes as traders are away for a holiday period,” AvaTrade analyst Naeem Aslam told AFP.

“We believe  overall there is still plenty of optimism about COVID vaccines—however, concerns are real that more restrictions may be placed ahead of New Year’s Eve to curtail the spread of COVID.”

Frankfurt’s DAX index had shut Thursday, closing the week with a 1-percent gain at 15,756.31 points.

Studies indicating Omicron infections are less likely to result in hospitalization have increased confidence that the pandemic will have less impact on the economy.

Sentiment has also been buoyed by US approval of drugs from Merck and Pfizer to add to a growing arsenal of weapons against COVID.