In his weekly market report, AB Capital Securities research head Jovis Vistan said the market is expected to revert to sideways pattern as most stocks are close to oversold levels. "We may be close to finding a near term bottom and should see a technical rebound. There is the need for stocks to go sideways and rebuild confidence. But we believe that the market has digested a lot of bad news very early and they may have taken too much cash off the table too quickly," he said.
The market has been in a correction phase since its highs for the year in mid-Jan. Since hitting its 2004 peak of 1,572.21 on Jan. 22, the Phisix has fallen 11.5 percent as of the close of trading last week. The selling has accelerated over the past two weeks, spreading from second liners to blue-chip issues.
At the close of trading Friday, the main composite index fell 59.91 points or 4.13 percent week on week to 1,390.92. Ongoing political anxieties, persistent weakness in the peso, rising interest rates, and budget deficit problems, all combined to push share prices lower.
BPI Securities, on the other hand, said investors will look towards the first quarter results for direction, which are expected to be out starting next month, before they make their investment decisions.
RCBC Securities, for its part, said the market will continue to consolidate further in the coming days as there is not much positive impetus to stimulate investors‚ apetite. Any uptick, it said, will be more due to a technical rebound.
"Although overall market sentiment is bearish, the present depressed levels of stock prices could foment some bargain-hunting to surface. If not for fundamental reasons, at least technical considerations should allow the market to slightly firm up. Some companies have yet to report their earnings results for 2003 and this could invite some interest although the impact might be limited given that most market players have generally discounted their impact on share prices," RCBC Securities said.
RCBC Securities said government’s plan to outsource mining activities to foreigners could also entice interest for mining stocks.
With the leading presidential candidates virtually neck-to-neck and with no clear government platforms presented to investors, trading would be minimal with market focus shifting to second-liners and stocks with generally positive operating prospects, RCBC Securities said.
"Any new negative developments, particularly events/issues related to the upcoming May 10 polls, however, could easily invite the bears back into the market, which could cause the Phisix to plough into negative territory.
The Madrid blast would also keep most market players on their toes, as they once more consider the implications of terrorist activities on their investment agenda," RCBC Securities said.
Last week, the market was rife with rumors that Hong Kong-based gambling mogul Stanley Ho may have re-entered the Philippines’ gaming business through the alleged acquisition of a 22.6-percent interest in Philweb Corp.
Ho operates casinos in Macau. Philweb recently bagged a deal to operate Internet sports betting and Internet casinos of state-run Philippine Amusement Gaming Corp. PhilWeb, however, denied this, saying his Azurestar Corp. and Aquadisk Corp., acquired the PhilWeb shares through a cross transaction at the Philippine Stock Exchange on Thursday at 0.011 centavo each.