Stock market investors seen to trade cautiously toward August

ABS-CBN News

Posted at May 19 2014 05:13 PM | Updated as of May 20 2014 01:33 AM

MANILA, Philippines - The stock market is expected to remain choppy for the next four months.

MBG Capital CEO Mike Garcia said there are so many factors outside the country that will discourage investors from aggressively buying up stocks.

Those include the sluggish US economy, and territorial disputes between ASEAN nations and China, including the Philippines and Vietnam.

"I think investors will be cautious, as mentioned the market typically behaves in correction mode as we approach August. A lot of investors will stand the sideline. And obviously, they're gonna be waiting and seeing," Garcia said.

"Soft patch means they're gonna be cautious to push it up very aggressively," he added.

But Garcia says if you are looking for a sector to invest in, consumer businesses should remain a bright spot.

Banks, on the other hand, should be in for a tough stretch, as they still have to adjust to possible changes in interest rates by the Bangko Sentral in the second half. - ANC