Earnings, trade talks to dictate market tack
Credit to Author: ANGELICA BALLESTEROS, TMT| Date: Sun, 10 Feb 2019 16:14:50 +0000
Earnings results due this week and reports about continued US-China trade talks are expected to determine the stock market’s direction this week.
In a comment issued during the weekend, Eagle Equities Inc. research head Christopher Mangun said he expected trading to be fuelled by earnings announcements and also by continued foreign fund inflows.
Ayala-led Globe Telecom Inc. and Ayala Land Inc. are among the listed firms scheduled to announce their 2018 performance this week.
“[I]f earnings disappoint or if foreign money ceases to flow, we may continue to see it (the market) trade between 7,800 and 8,100 for the following weeks as it builds momentum to go higher in the longer term,” Mangun said.
In a separate comment, online brokerage firm 2tradeasia.com said global markets could trade either way in the wake of US President Donald Trump’s statement last week that he would not meet his Chinese counterpart, Xi Jinping, before a March 1 deadline for a trade deal.
Markets fell last week as the news sparked fears that talks due to resume this Thursday and Friday in Beijing could fail, sparking a resumption of the US-China trade war.
Wall Street ended flat on Friday, however, recovering slightly from declines earlier in the week.
On the domestic front, 2tradeasia.com said investor attention would also be on where inflation was headed given higher power rates for February and the implementation of increased water tariffs.
Manila Electric Co. last week announced that it would raise rates for the first time this year, citing higher generation costs.
On Friday, the bellwether Philippine Stock Exchange index dropped by 0.36 percent or 29.41 points to close at 8,070.89. The wider All Shares declined by 0.21 percent or 10.25 points to finish at 4,896.32.
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