Market pessimism persists

MANILA, Philippines - Pessimism may continue to affect the stock market this week amid the cycle of negative news since last week, analysts said.

“The cycle of negative news continued through the weekend. Though investors have been on edge since the local market fell off its lofty heights in April, there were hopes the drop is just part of the usual corrective phases — such hope still linger,” said Justino Calaycay of Accord Capital.

At the same time, he said with the economy’s growth slower than expected at 5.2 percent in the first quarter and as corporate earnings tracked a similar path, investors are likely to still be jittery this week.

“In the domestic scene, the poor GDP for the first quarter remains the biggest thorn — with possibility the second quarter GDP result set for release this week serving as the tweezer that could pull this out or the hammer that drives yet another nail in the coffin of this six year old bull,” he said in a market outlook.

Outside domestic jitters, Calaycay said a fresh period of instability in Greece poses yet another unwanted drag on markets that are already experiencing investor pessimism.

This is due to the resignation of Greek Prime Minister Alexis Tsipras. He reportedly resigned, after seven months in office, hoping to strengthen his hold on power in upcoming snap elections.

On Thursday, local share prices fell as investors opted to limit their exposures ahead of an extended weekend break.

The index briefly edged higher by two points at the opening bell but caved into the bears thereafter and hardly challenged the latter’s dominance of Thursday’s action. There was very little, if at all, leads that optimism could be hinged on, Calaycay said.

The benchmark Philippine Stock Exchange index (PSEi) lost 65.75 points or 0.90 percent to close at 7,278.98 on Thursday.

Analysts said market investors continued to be pessimistic amid global concerns on slower economic growth from China.