LAST week: Share prices dropped 1.98 percent week-on-week to 2,722.95 as inflation fears continue to dominate the local market. Despite the rally in global equity markets, local stocks continued to be battered as investors stayed on the sidelines and waited for developments as inflation issue looms. 

THIS week: Jonathan Ravelas, a senior market strategist at BDO-EPCIB, sees further weakness towards the 2600–2650 levels. “However, expect technical rebound to occur towards the 2800–2850 levels in the week ahead,” he said.

For his part, AB Capital Securities analyst Prince Yeung said the jobs data from the US well as the local corporate earnings results will dictate Philippine Stock Exchange index (PSEi) movements this week.

“The jobs data has shown a decline in the past few months and a further drop is expected for April. Telecom companies PLDT and Globe, two of the largest components of the PSEi, are set to announce their first-quarter results. Their performances in this period will give a glimpse of how the local economy fared during the months of January to March,” he explained. 

STOCKS to watch: The AB Capital analyst added investors will be eagerly awaiting the inflation report for the month of April. A higher-than-expected rise in the prices of the monitored set of goods or services will lead to further weakness in the index. However, strong earnings from key index issues like PLDT, Globe and Meralco might buoy the market this week. 

SAN FRANCISCO—Microsoft Corp. on Saturday yanked a $42-billion takeover offer for Yahoo Inc. that would have reordered the landscape of the Web after the companies failed to agree how much the Internet pioneer was worth.

PSE offers new rules on ETFs investment vehicle

THE Philippine Stock Exchange (PSE) has proposed new rules on exchange-traded funds (ETFs), considered as sophisticated forms of securities that are gaining popularity in stock markets overseas.

Two of the country’s telecommunications companies don’t want to pay a portion of their interconnection fees to PLDT, citing a circular issued by a government agency. The phone giant, however, is not expected to take this move sitting down.

Gotianun-led Filinvest Development Corp. (FDC) is decelerating moves to invest in the power sector after its first attempt failed to prosper. 

There will be two additional flights to the Middle East by mid-2008. Emirates is adding one Manila-Dubai flight sometime this month and Qatar Airways is adding one Manila-Doha trip in June.

LAST week: Share prices dropped 1.98 percent week-on-week to 2,722.95 as inflation fears continue to dominate the local market.