Market seen to trade flat

MANILA, Philippines - The local stock market is expected to open on a flattish note with a negative bias this week as the country faces the onslaught of a vicious typhoon that has claimed at least 51 lives and left more than a quarter of a million people displaced.

Tropical storm “Ondoy” dumped the heaviest rainfall on Metro Manila and nearby areas, posting a record in a span of just six hours which  saw 80 percent of Metro Manila under water.

“Investors are expected to adopt a wait-and-see stance following the damage Ondoy has brought to our country. Some investors may unload holdings as they wait things to return to normalcy,”an analyst at a local brokerage house said.

Ondoy’s wrath has  left some areas under up to 20 feet of water, stranding entire families on rooftops, prompting  the government to declare a “state of calamity” in metropolitan Manila and 25 storm-hit provinces.

Last week, the main composite index gained 32 points or 1.15 percent  to close at 2,821.34, led by the strong performance of the property sub-index which rose 2.4 percent week on week. 

AB Capital Securities said the PSEi is still in consolidation and may take a while before it breaks out of this trend.   

“The range the index is making is slowly beginning to narrow. If accompanied with a strong catalyst next week, we may see a decisive move either up or down for the index. So far the prevailing atmosphere is that of caution coming from the investors,” the broker firm said.

“The sole driver, which might have fleeting effects to the markets, is the G20 summit. The agenda for the two-day meeting is to tackle the global economic growth, a possible financial market reform, and climate change. If President Obama is able to push through overhauling the global financial system, then we may see some action in the markets next week,” AB Capital Securities said in its online market report over the weekend.