Philippine shares outlook - Lower on Wall Street's fall, oil surge |
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Wed, 17 Oct 2007 01:15
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MANILA (Thomson Financial) - Philippine shares may open lower Wednesday, tracking another decline on Wall Street after record oil prices, fresh concerns about the troubled housing market and disappointing results at Wells Fargo, the fifth-largest US bank.Comments from Federal Reserve Chairman Ben Bernanke that the weakness in the US housing market will continue to be a drag on the economy and a spike in crude oil prices past 88 dollars a barrel sent Wall Street tumbling for a second day on Tuesday.On Tuesday, Manila's composite index lost 46.15 points or 1.2 percent to settle at 3,815.22.'Stocks may remain in a corrective mode as inflationary concerns are expected to spook traders. Prospects of further rate cuts in the future are being jeopardized by the rising cost of crude oil,' AB Capital Securities said in a market note.Investors will be keeping an eye on the trading debut of I-Remit Inc, a Philippine-owned non-bank remittance company.The company priced its initial public offering at 4.68 pesos per share. It offered 140.6 millioncommon shares, accounting for 25 percent of its enlarged capital.I-Remit has said it will use the net proceeds of 476 million pesos to fund expansion, boost capital and pay off short-term debt.It is the first IPO since early August, before the market's sharp decline spurred by the USsubprime mortgage crisis. It will be the sixth Philippine company to go public this year.(1 US dollar = 44.34 pesos)rocel.felix@thomson.comrf/msCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Philippine shares outlook - Lower on Wall Street retreat 