Philippines share prices are expected to consolidate next week after rising to levels that many consider overbought, dealers said Friday. "The market is expected to go into a consolidation with a bias to correct some of the excess gains from past weeks." said AB Capital Securities in an advisory.
It expected erratic trading as investors would adopt a wait and see approach to the many issues that are influencing the market. Regional markets have been dogged by the outlook for the US economy and in particular its housing market, meanwhile interest rates in the US, China and elsewhere in the region have also weighed on sentiment.
Average daily turnover fell to 5.04 billion shares worth 5.53 billion pesos (119.4 million dollars) from 7.64 billion shares valued at 11.6 billion pesos last week.
"We will continue to waltz with the overseas markets," forecast Astro del Castillo of First Grade Holdings. He added, "the market will remain in a consolidation mode. We may see some weakness because July and August are what we call 'ghost' months," because trading is usually slim in that period.
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