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US-China tension to affect market

Stocks are expected to continue to trade within a narrow range during this shortened trading week amid fears of a global slowdown amid the lingering US-China trade war.

Analysts said investors were evaluating the possible outcome of the G20 Leaders Summit to be attended by both countries and other major economies on June 28 to 29.

“The political pivot is whether both countries would be willing to yield, to arrive at the best option that facilitated ‘freer’ trade and help support growth. Tariffs, after all, are perceived as ‘bottlenecks’ since the tax burden shifts to consumers,” online brokerage firm 2TradeAsia.com said.

Hopes for US rate cut could boost flows of funds in the equities market as fund managers seek for higher alternative yields, analysts said.

Papa Securities trader Gabriel Jose Perez said the local shares could continue the quiet sideways movement this week given the lack of  immediate catalysts and another upcoming holiday on Wednesday.  June 12 is celebrated as the Independence Day in the Philippines.

The Philippine Stock Exchange index, the 30-company benchmark, last week inched up 0.2 percent to close at 7,983.98 on mixed trading as investors waited for new catalysts that could boost the stock market.

The broader all-share index was flat at 4,890.79. Sectoral indices were equally split with financial, holding firms and property ending in positive territory while mining and oil, services and industrial indices posting week-on-week declines.

Foreign investors were net sellers last week by P308.3 million, while average daily turnover declined to P8 billion from the previous week’s average of P8.9 billion.

Top gainers last week were Phinma Energy Corp. which climbed 7.7 percent to P2.52; First Gen Corp. which advanced 4.1 percent to P24.05; and Rizal Commercial Banking Corp. which went up 3.9 percent to P27.50.

Among the heavy losers were PLDT Inc. which declined 8.9 percent to P1,230; Cemex Holdings Philippines Inc. which dropped 5.6 percent to P2.36; and Jollibee Foods Corp. which dipped 4.4 percent to P275.20.

Topics: Stock Market , Philippine Stock Exchange Index , Philippine Stock Exchange , PSE , PSEi
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