THE Philippine Stock Exchange index ended the week above 7,700 points, which is neither good nor bad relative to the worst case scenario. According to technical analyst and stock broker, Hernan Segovia, most investors are in a negative mood right now and many of them do not expect the year to end on a positive note.
“The feeling right now is not good. Sentiment wise, it’s quite negative, despite fundamentals,” Segovia said.
The market’s current weakness stems from concerns about the utilities sector, particularly those which have been criticized by President Duterte. There are also concerns about foreign markets, but Segovia explained that they are not as important as the domestic factors.
Furthermore, as 2019 comes to an end, many investors are looking back at the year with bad memories.
“It’s been very difficult,” Segovia said. “I’ve talked to a lot of seasoned investors with regards to their portfolios; I also talked to some fund managers – 2019, for them, was a very hard year for equities, but a very good year for bonds. Anyone who made money from the stock market during 2019 had done very well.”
When asked what we could expect next year, Segovia hopesthat the market will recover, and if it does, it could reach a much higher level. “Technically, we might see the index going forward to 8,200, but the first quarter will dictate all the issues moving forward to the end of the year. Last March, we are a so-so market, so we end the year with a so-so market.”/PN
