Share prices are expected to move sideways this week on global growth worries.
Analysts said the market was facing strong resistance at the 8,000-point level on concerns about the US-China trade negotiations.
Investors at the start the second quarter are also expected to focus on the release of the March inflation rate figure this week.
The general consensus is the March inflation rate will be at 3.5 percent given the slower trend in consumer prices. But online brokerage firm 2TradeAsia said the market was anticipating a spike in inflation rate from April to June because of election-related spending.
The damage to crops due to drought and the continued increase in fuel prices could also push the inflation rate higher in the coming months.
“Adjustments are also anticipated post-election or until 2019’s fiscal budget clearance is granted that would jump-start infra-based construction initiatives,” 2TradeAsia said.
Investors are expected to position on stocks that will benefit from election-relation spending, especially consumer-related issues.
The Philippine Stock Exchange Index ended the first quarter of 2019 at 7,920.93, up 6.1 percent year-to-date.
Except for the mining and oil and financials, all other sectoral indices posted year-to-date increases, led by property (+13.44 percent), services (+5.92 percent), industrial (+7.02 percent) and holding firms (+4.83 percent).
Foreign investors were net buyers during the first quarter of the year at P32.6 billion.
The average daily value traded during the first quarter of the year stood at P8 billion.
Weekly top price gainers were SOCResources Inc., which jumped 40 percent to P1.05; International Container Terminal Services Inc., which advanced 5.3 percent to P130.70; and San Miguel Food and Beverage Inc., which rose 4.8 percent to P108 apiece.
The weekly top price losers, meanwhile, were PXP Energy Corp., which slumped 13 percent to P1.13; GT Capital Holdings Inc., which dropped 10.4 percent to P931.50; and Manila Water Co Inc., which fell 6.5 percent to P23.05.
Global stocks rallied Friday on optimism over US-China trade talks, while the pound fell further as Britain veered closer to a potential “no deal” Brexit.
Bourses rose in the US and in major European and Asian centers, concluding the first quarter with a flourish.
Friday’s session was bolstered by upbeat comments from Trump administration officials following the latest round of trade negotiations in Beijing.
US and Chinese negotiators are working to find a binding agreement to address President Donald Trump’s complaints about years of unfair treatment of US companies by China, which would allow a rollback of the tariffs hitting businesses in both countries.
The White House reported “progress” in what it termed “candid and constructive discussions,” saying that the next round of talks will be held in the US capital on April 3.
Chinese state broadcaster CCTV said the latest round yielded “new progress,” without elaborating. With AFP