Volatile markets observed this week


Trading on the Philippine Stock Exchange is expected to remain volatile as the spread of the Omicron variant of COVID-19 weighs on the market. BDO Unibank Inc.’s Chief Investment Strategies said the Philippine Stock Exchange index would likely trade between 7,000 and 7,200 points in the near term due to the nervous position of investors. A sustained fall below 6,950 levels will call bears to test the 6,500/6,800 marks. Upcoming stock trades in the market, however, should give investors some confidence in the market. Medilines Distributors Inc., a leading medical equipment distributor in the country, is expected to be listed in the Philippines’ healthcare initial public offering on Tuesday, while Solar Philippines Nueva Ecija Corp ., a unit of Solar Philippines Power Holdings Inc., is expected to list its shares on December 17, 2021. Last week, the PSEi ended down 3.1% to close at 7,055.19 amid concerns over the news. variant of COVID-19. The broader all stocks index also fell 2.1% to 3,790. All sub-indices posted week-over-week declines, led by holding companies (-3.46% ), real estate (-3.24%), industry (-2.96%), and services (1.92%). ). The financial index slipped 1.8 percent while the mining and oil index fell 1.3 percent. Foreign investors were net sellers for the week of 1.8 billion pesos, while the average daily traded value reached 14.6 billion pesos compared to the previous week’s average of 8.8 billion pesos. The Union Bank of the Philippines, which jumped 13% to 97.20 pesos, after the bank was seen as the preferred bidder for consumer and retail banking assets for US banking giant Citigroup Inc. The other major Winners were Converge Information and Communications Technology Solutions Inc., which rose 4.5% to P31.50, and DMCI Holdings Inc., which rose 3.5% to P7.97. The main weekly price losers were Cebu Air Inc., which fell 9.7% to 43.70 P; Jollibee Foods Corp., which fell 8.5 percent to P223; and Ayala Corp., which fell 5.7% to P824. Global stocks ended a volatile week on Friday on a depressed note, ravaged by lingering concerns over the Omicron variant and disappointment over the latest US job growth figures. Latest variant of COVID-19 has been detected in 38 countries, but no deaths have yet been reported, WHO said, as authorities around the world rushed to stem the spread of the heavily COVID-19 strain transferred. “Investors are clearly still concerned about the Omicron variant, despite anecdotal evidence suggesting symptoms are less severe” than initially thought, said Craig Erlam, analyst at Oanda Trading Group. “As the weekend approaches, when we could get more information on the new variety, it’s only natural that we notice more caution. IMF chief Kristalina Georgieva has warned that the latest strain of the virus could slow the global recovery, noting that “a new variant that could spread very quickly may shake confidence.” The Paris, Frankfurt and London stock exchanges all fell. With AFP

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