Trading at the Philippine Stock Exchange is expected to remain volatile amid anxiety over the geopolitical space after former US President Donald Trump completes his return to the White House.
Online brokerage firm 2TradeAsia.com said trading would likely remain volatile over the short term until Trump’s policies are made clearer.
“Emerging markets are expected to take most of the brunt in the short-run amid the strengthening greenback, fund flows repatriation, trade reshuffling, and overall anxiety in the geopolitical space,” 2TradeAsia.com said.
With the market falling below the 7,000 level, analysts also expect some bargain-hunting to take place this week as share prices dropped to attractive levels.
“With already a three-week drop, the local market is deemed to be at more attractive levels. Hence, we may see some bargain-hunting” Philstocks Financial Inc. research head Japhet Tantiangco said.
“A strong ascent is not expected yet however as investors may continue to deal with our slow Q3 economic growth, weak peso, and the challenging global economic outlook due to the possibility of protectionist policies in the US amid a Trump presidency,” he said.
Analysts said overall economic conditions remain positive with Bangko Sentral ng Pilipinas also expected make another rate cut in December following US Federal Reserve’s 25-basis-pointrate cut.
However, the continued weakness of the peso against the US dollar and slight pick-up of October inflation rate also weighed on investor sentiment.
The Philippine Stock Exchange index slumped by 165 points, or 2.32 percent, week-on-week to close at 6,977 on Nov. 8, 2024.
All counters finished lower led by property, which declined by 4.58 percent and mining and oil by 3.32 percent.
Average turnover improved to P6.07 billion, while average net foreign selling more than doubled to P1.55 billion, up by 114.82 percent week-on-week.
