Del Castillo – Maniolas

Index barely moves in lackluster trade

Economy

Aug 072013

MANILA, Philippines – Lackluster trading marked the start of the traditional Chinese ghost season, with the main share index barely changing from Tuesday’s close.

The Philippine Stock Exchange index (PSEi) was nearly unchanged at 6,420.79, up by just 0.01 point. The broader all shares index inched up 0.03 percent or 1.28 points to 3,923.56.

“There is really nothing to drive the market. There is a dearth of news and the interest is not there,” said Astro del Castillo, managing director of First Grade Finance Inc.

“August is called ghost month after all given the lackluster trades of the market,” Del Castillo said. Considered unlucky by Chinese, investors hold off from major investment decisions while Western fund managers take advantage of low turnover to enjoy vacation.

The bellwether index erased early gains that allowed it to hit an intraday high of 6,450.41.

Local shares were immovable, bucking large decline in Asian markets, led by Japanese stocks that suffered from a stronger yen that hurts the export sector.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1

Japan’s Nikkei 225 sank four percent or 576.12 points to 13,824.94 while Hong Kong’s Hang Seng index declined 334.86 points to 21,588.84.

Locally, all counters were in the green, led by mining and oil that recovered 58.37 points to 14,487.01. Holding firms bucked the trend, slipping 0.78 percent or 45.93 points to 5,805.52.

Del Castillo said that even benign inflation data and good corporate earnings failed to cheer the market.

Positive sentiments boost share prices

Economy

Jul 052013

MANILA, Philippines – The Philippine Stock Exchange index (PSEi) advanced 0.56 percent or 36.22 points to settle at 6,500.48, ending the week with a two-day climb as investors turned positive following a streak of favorable foreign news. The broader all shares index added 0.44 percent or 17.31 points to 3,972.63. “The trend is that global markets remain cautious but positive and the local market continued to be overwhelmed by bargain hunters,” Astro C. del Castillo, managing director of First Grade Finance Inc., said in a phone interview. Asia Pacific also ended the week with another gain, giving local investors a positive sign as jitters eased in the past few days, Del Castillo said. Asian shares rose on Friday as investors take position ahead of the US Labor Department’s release of employment data. A weaker job market is seen to convince the US Federal Reserve not to ease its bond buying stimulus program. US financial markets were closed for the Independence Day holiday. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In the local bourse, counters were mixed, led by holding firms that added 1.28 percent or 75.54 points to 5,960.72. Decliners were paced by 0.56 percent or 82.45 points to 14,532.53. The value of shares traded fell to P5.18 billion compared with P5.43 billion on Thursday. Net foreign selling hit P188.49 million. Advancers outplayed decliners, 86 to 64, while 46 stocks did not change.

Phl market still vulnerable to selling pressure

Economy

Jun 122013

Phl market still vulnerable to selling pressure

MANILA, Philippines – Selling pressures are not yet over in the already volatile local market given continuous decline in regional and global bourses. Fund managers are still realigning funds, worried that central banks are planning to unwind stimulus programs, analysts said. “It seems like the bears are still present. Hopefully, there will be a reversal in Dow Jones otherwise we will see some more downside given the negative sentiments overseas like in Asia Pacific,” Astro C. del Castillo, managing director of First Grade Finance Inc., said in a phone interview. “Given what happened (on Tuesday), it seems selling is not yet over,” Del Castillo said. The next few days will be characterized by wide range of trades, Justino Calaycay Jr., analyst at Accord Capital Securities, said. “Investors are still very cautious of the risks presented by external factors,” Calaycay added. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 On Tuesday, the Philippine Stock Exchange index (PSEi) plunged 4.64 percent or 318.95 points to 6,556.65, the largest single day loss since slumping 5.13 percent on Sept. 23, 2011. It is also the largest one-day decline in terms of points, eclipsing the 275.22-point drop on May 30. Foreign funds are flowing out of the Philippines amid stronger peso and potential pullout of the US Federal Reserve’s $85-billion monthly bond buying program that has been jacking up liquidity. Locally, Philippines’ robust economic growth failed to perk up employment, with joblessness rising to 7.5 percent in April from last year’s 6.9 percent. Calaycay Read More …

Stocks suffer another selldown

Economy

Jun 052013

MANILA, Philippines – Stocks fell for the third straight day as fund managers continue to unload their holdings as part of a global realignment of investments. The benchmark Philippine Stock Exchange index dropped 1.73 percent or 115.58 points to end at 6,557.89, the lowest point since closing at 6,518.71 on March 22. “The portfolio realignment of investors continues with the changing investment environment in the global arena,” Astro del Castillo, managing director of First Grade Finance Inc., said in a phone interview. “We are waiting for the dust to settle before bargain hunters come in,” he said. Fund managers have been pocketing gains from stocks amid worries over the rollback of the US Federal Reserve’s stimulus program. Del Castillo said there is no market moving news locally, with benign inflation figures failing to lift investor sentiment. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “A correction in the equity market as we had seen in the last few days should not come as a surprise to participants,” Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said in a text message to reporters. He shrugged off concerns of a sudden market downturn evolving into a financial crash, saying the financial markets should be expected “to move up and down.” The central bank chief, who has long rejected the possibility of a repeat of the 1997 Asian financial crisis, said the Philippines is in a better position now and that domestically, there is no reason why investors should depart. – With Read More …