Philippine shares outlook - Firmer on bargain-hunting after Wall Street rebound

Philippine shares outlook - Firmer on bargain-hunting after Wall Street rebound

	Published : Tue, 23 Oct 2007 02:02 By : Agencies Print this Story

MANILA (Thomson Financial) - Philippine shares may open firmer on Tuesday as bargain-hunters step in following the market's 4 percent drop in the previous session, with Wall Street's positive finish after a volatile session

overnight likely to help calm nerves.

But buyers are unlikely to be aggressive, mindful of uncertainties over the domestic security and political situation and the health of the US economy.

The composite index finished down 151.88 points at a three-week low of 3,667.87 on Monday. It was the biggest single-day point loss for the key index since Aug 16.

'Markets are expected to remain weak as investors maintain a cautious stance. Some

bargain-hunting may ensue but a firm recovery is not expected this early,' BPI Securities said in a note to investors.

US stocks ended higher Monday, recovering from Friday's plunge, as investors still nervous

about the credit markets found some comfort in the technology sector, with Apple Inc's fiscal fourth-quarter earnings exceeding expectations when it reported results after the closing bell.

Keeping investors a little more cautious is the domestic security and political situation following

Friday's explosion at property developer's Ayala Land Inc's upscale Glorietta shopping complex, which left 11 people dead.

Investigators could not conclude yet that the blast was caused by a bomb and was a terror attack given the lack of evidence, fuelling speculation that it could be an accident.

Investors are also watching political developments as President Gloria Arroyo is facing renewed calls to step down amid corruption allegations.

(1 US dollar = 44.12 pesos)

enrico.delacruz@thomson.com

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