Philippine shares outlook- Mixed on US rebound, fiscal woes; focus on Vista Land |
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Thu, 26 Jul 2007 01:56
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MANILA (Thomson Financial) - Philippine stocks are expected to open mixed on Thursday as Wall Street's rebound Wednesday sparks some buying interest , while fresh concerns about the country's fiscal prospects weighs on sentiment.One stock expected to be in the limelight will be Vista Land & Lifescapes Inc, which resumes trading today after raising about 24 billion pesos from a recent stock offer.The property developer is listing today an additional 2.1 billion new common shares which were part of the 3.1 billion shares it sold to the public, mostly to foreign investors, at 6.85 pesos apiece.The stock's last traded price was 7.10 pesos on June 12.Manila's composite index plunged below support levels of 3,700 and 3,650 on Wednesday, shedding 60.73 points or 1.6 percent to close at 3,645.51 after investors reacted to lending concerns in the US and to Fitch Ratings unfavorable assessment of Manila's fiscal performance.On Tuesday, the global credit ratings agency issued a statement casting doubt on the government's ability to keep its budget deficit this year below its own target ceiling of 63 billion pesos after the administration failed to meet tax collection targets in the first half.'The market may remain in a bearish mood as worries about the US housing market will dampen sentiment (while) concerns about the government's fiscal performance will also provide a negative tone to trading today,' AB Capital Securities, said in a note to clients.It sees the next major support level for the main index at 3,600 points.(1 US dollar = 45.06 pesos)enrico.delacruz@thomson.com-ed/mbCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Philippine shares flat in early trading on tepid reaction to Arroyo speech 