Share prices are expected to move sideways this week as investors look for catalysts that could push the index forward.
“As the earnings season unwinds, investors’ search for a positive impetus have narrowed to expectations of a Santa Claus rally—which nevertheless takes place over the period bridging the current and the new year,” Philstocks Financials Inc. research head Justino Calaycay said.
“Major economic data will come out by next year, except for the monthly inflation report, thus scrimping yet another possible source of catalyst over the near term,” he added.
BDO Unibank Inc. chief investment strategist Jonathan Ravelas said local investor sentiment improved due to the decline in world oil prices and the improvement in emerging market currencies driven by the slight weakening of the greenback.
“This further strengthens the view that inflation could have peaked, thus causing investors to rush back into the market,” Ravelas said.
“Chartwise, the week’s close at 7,083.34 (shows) strong support exists at the 6,800/6,900 levels. Look for an attempt towards the 7,300 levels in the near-term,” he added.
The Philippine Stock Exchange Index last week rose 1.6 percent to close at 7,083.34, while the broader All Shares Index climbed 1 percent to 4,310.52 after the Bangko Sentral ng Pilipinas raised interest rates to temper inflation rate.
Most sectoral indices were up last week, except for mining and oil which dropped and 1.9 percent and services which fell 0.2 percent.
Foreign investors were net sellers for the week by P2.87 billon, while the average daily value traded stood at P7.6 billion.
Weekly top price gainers were Globe Telecom Inc., which rose 11.4 percent to P1,925; Bank of the Philippine Islands, which advanced 11.1 percent to P88.90; and GT Capital Holdings Inc., which advanced 10.8 percent to P807.
Weekly top price losers were Philex Mining Corp., which declined 13.7 percent to P2.76; MacroAsia Corp., which dropped 12.3 percent to P14.38; and Nickel Asia Corp., which lost 11.2 percent to P2.30.
Meanwhile, Wall Street eked out a split finish on Friday, reversing some earlier losses following hopeful comments on trade from US President Donald Trump.
Trump gave the major stock indices a bump in early afternoon, announcing that Beijing had made clear overtures toward resolving the US-China trade war so he might not need to impose yet more tariffs.
Stocks forged higher, wiping away losses from earlier in the day when Facebook and the semiconductors firms weighed on the market.
But due to a string of finishes in the red in prior sessions, the major indices finished the week substantially lower.
The benchmark Dow Jones Industrial Average gained 0.5 percent, rising to 25,413.22, but finishing the week 2.2 percent lower after a string of sell-offs earlier in the week.
The broader S&P 500 added 0.2 percent to 2,736.27 but finished the week 1.6 percent lower.
But the Nasdaq, weighed down by losses in the tech sector, fell 0.2 percent, closing at 7,247.87, 2.1 percent lower for the week. With AFP