Share prices are expected to trade sideways during this shortened trading week as investors look for new catalysts that could push the market higher.
P2P Trade Online trader Gabriel Jose Perez said investors might look for developments overseas that could impact on the local equities market, with the earnings season coming to an end
Among the key issues to watch out for this week are the ongoing trade war between the United States and China as well as the MSCI rebalancing announcement.
BDO Unibank Inc. chief investment strategist Jonathan Ravelas said the week’s close at 7,742.20 signalled a continued consolidation between the 7,700 points and 8,000 points.
While the market suffered a steep decline last week due to the lower-than-expected first-quarter economic growth, Ravelas said government’s plan to speed up state spending growth to about 15 percent in the months ahead could boost economic expansion in the second half of the year.
The government last week reported that the gross domestic product rose 5.6 percent in the first quarter of the year, slower than 6.3 percent in the previous quarter, as delays in passing the budget this year stalled government spending.
The Philippine Stock Exchange Index last week dropped 2.8 percent to close at 7,742.02 points, while the broader All Shares Index declined 2.3 percent to 4,791.26.
All major sub-indices ended in red, led by mining and oil which was down 5.3 percent, property which declined 3.63 percent and holding firms and industrial which fell 3.2 percent and 2.6 percent, respectively.
The financials index also dipped 2 percent, while services lost 1.2 percent.
Foreign investors were net sellers for the week by P2.7 billion, while the average daily value traded stood at P7.1 billion from the previous week’s average of P7.28 billion.
Weekly top price gainers were Ginebra San Miguel Inc., which jumped 24 percent to P37.50; Holcim Philippines Inc., advanced 14 percent to P15.30; and Globe Telecom Inc., which climbed 10.8 percent to P1,995.
Weekly top price losers were Alliance Global Group Inc., which dropped 11.2 percent to P13.60; Bloomberry Resorts Corp., which fell 11.1 percent to P10.90; and Semirara Mining and Power Corp., which lost 9.6 percent to P21.70.
Global stocks, meanwhile, largely shrugged off new US tariff measures on China on Friday as officials agreed to continue trade negotiations, while ride-hailing company Uber tumbled in its long-awaited market debut.
Wall Street endured a roller-coaster session, with the Dow shedding more than 350 points early in the session in the hours after Washington raised duties on $200 billion in Chinese imports to 25 percent from 10 percent.
But investors were cheered by President Donald Trump’s upbeat comments after the talks ended with no deal, but also no breakdown. That helped the Dow score a 0.4 percent gain on the session.
“The markets are putting an optimistic spin on very little information,” said Maris Ogg of Tower Bridge Advisors.