Stocks to remain volatile this week, say analysts
- Zinnia B. Dela Peña () - October 20, 2008 - 12:00am

Local stocks will remain volatile this week amid fears that the widening financial crisis could spawn a global recession, analysts said.

 Analysts said the stock market will continue to track global stock markets shaken by the global financial crisis.

While most markets overseas continued to reel from heavy losses, the PSEi inched up by 0.46 points or 0.02 percent to 2,098.26 last week. Average daily turnover rose to 1.722 billion shares worth P2.612 billion from 1.682 billion shares worth P2.413 billion.

“Technical indicators still show an undefined direction for the PSEi – the widening Bollinger bands emphasize the increasing volatility in the market with profound dependence on the DOW’s movement. With the global economic slowdown dragging the Philippines, the turning point for the PSEi might still be far ahead,” said Maria Arlysa Narciso of AB Capital Securities.

“If the markets are not tired yet, this plunge may still continue for some time. The talks of the US and EU leaders may provide some direction depending on the next steps these two major economies would take,” Narciso added.

Leaders from the US and European Union agreed to meet this week to address the looming global recession.

Fears of a full-blown recession were spawned by figures showing sharp declines in US consumer confidence and new-home construction.

Astro Del Castillo, managing director at First Grade Holdings Inc. believes the volatility will likely remain until the end of the year unless the global financial landscape improves.

“Sentiment is deteriorating. People are losing what little confidence they have,” Del Castillo said.

ASTRO DEL CASTILLO BILLION CAPITAL SECURITIES DEL CASTILLO EUROPEAN UNION FINANCIAL FIRST GRADE HOLDINGS INC GLOBAL MARIA ARLYSA NARCISO NARCISO
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