Year-end window dressing to provide upside bias for cautious mart — experts

As the precedent-setting impeachment trial against President Estrada heats up, the stockmarket is not expected to take the same route although the market’s bias is on the upside due to occasional pickings mostly by the government financial institutions (GFIs) in preparation for their year-end window-dressing.

"It won’t be very active, so we don’t expect much action at the market in the meantime," Eagle Equities president Joey Roxas said. "Everybody seems to be keeping tab of the development in the impeachment trial."

The market has moved indecisively even before the start of the impeachment hearings at the Senate last Thursday, as cautious investors opted to stay in the sidelines, waiting for the opportune time to cash in on breaking news at the political front.

Irving Ackerman of I. Ackerman and Co. reiterated that unless a definite pattern – whether slanted toward the prosecution or the defense – shapes up in the impeachment trial, there are no other significant catalysts that would move the market except sideways.

Roxas said the market’s slight gain last Friday could be an indication of renewed buying by the pro-administration groups, as the first salvo of the legal battle was deemed in favor of the defense team.

The Phisix edged almost 10 points higher to touch the 1,400 mark last Friday. Week-on-week. It was able to add over 14 points due to the excitement generated leading to the impeachment trial.

Roxas said this twist in the trial could provide a boost to the so-called "Erap stocks," or companies controlled by known Presidential allies, as well as stocks in the portfolio of GFIs like the state pension funds SSS and GSIS.

Among the stocks to watch are those of the Gatchalian group (Waterfront, Wellex, Philippine Estates, Air Phils.); Lucio Tan’s PNB, Tanduay Holdings, Baguio Gold and Macro-Asia; Danding Cojuangco’s San Miguel and Dante Tan’s Fairmont Holdings.

The index-heavy stocks included in the equities mix of the pension funds are also seen to benefit from a window-dressing scheme that would include buying into PLDT, Ayala Land, Ayala Corp., San Miguel, Meralco, Belle Corp. and Megaworld, among others.