RP stocks close sideways as investors wait for external cues

Philippine stocks ended the session sideways Monday as traders and investors wait for strong leads from foreign markets. "There are ongoing concerns if some Asian countries, the Philippines included, could be able to sustain its good economic status or not," said Juan Carlos Garcia, an investment analyst of 2TradeAsia.com. The Philippine Stock Exchange index slightly went up by 10.06 points or 0.29 percent to 3,479.67 points. Over 1.147 billion shares valued at P3.858 billion were traded. Decliners led advancers 60 to 56, while 50 stocks were unchanged. Garcia said the US is struggling to achieve growth and create jobs, while investors are anxious about China's economy weakening or overheating, according to Garcia. Despite positive news on Philippine corporate results, "we can only wait until there are market-moving updates abroad and at home," he added. "There are no new catalysts to move the market at present," he said. Still, Maria Arlysa Narciso, an analyst of AB Capital Securities Inc., pointed out in a separate interview that the local economic outlook is strong and positive. "Growth remains achievable due to improving manufacturing activity. Consumption and spending are encouraged by stable prices and low interest rates," she said. What the administration of President Benigno Aquino III must focus on is the budget deficit and the growing national debt, she said. "So far, rating agencies have kept a stable outlook for the country yet emphasized that fiscal risks remain. If this is not properly addressed, investors may be wary of pouring in investments in the country," she warned. —JE/VS, GMANews.TV