Where is the ‘bear market’ headed?

Brokers are seen busy on the phone at the Philippine Stock Exchange’s new unified headquarters in Bonifacio Global City. The move to BGC in February 2018 united traders who were previously located in two locations, one at Tower One along Ayala Avenue in Makati and another at Tektite Tower in Ortigas Center, Pasig. AFP

MANILA – Stock prices may have “bottomed out” or reached their lowest possible levels before bouncing back, an analyst said recently, as the market plunged deeper into bear territory.

With net foreign selling at close to $1.2 billion year to date and average foreign ownership at 20 to 24 percent, outflows could be ending, said Julian Tarrobago, who manages $2 billion for ATRAM Alpha Opportunity Fund.

“I actually think the downside is fairly limited,” Tarrobago told ANC.

“Those who wanted to sell, a lot of them are in the process of unwinding their positions,” he said.

Tarrobago said he saw the support level for the Philippine Stock Exchange Index at 6,800 points. It was down 0.42 percent to 7,086.36 at noon Friday and closed at 7,063.20. On Monday noon, it improved slightly to 7,121.31.

Tarrobago said his fund outperformed the market with the help of cash that it built from the start of the year. ATRAM Alpha declined 6 percent year to date compared to the 15-percent decline in the broader market.

The PSEi (Philippines Stock Exchange index) closed in bear market territory last Wednesday, when the decline from its January peak reached the 20-percent minimum. (ABS-CBN News)

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