Share prices are expected to continue with their sideways trading on thin volume during this shortened trading week as investors remain cautious amid the worsening trade spat between the United States and China.
China over the weekend announced new retaliatory tariffs ranging from 5 percent to 10 percent that will affect $75 billion worth of US products
US President Donald Trump later tweeted that he “will be responding to China’s tariffs”.
Luis Limlingan, head of sales of Regina Capital Development Corp., said investors would also be monitoring the results of the upcoming meeting between President Rodrigo Duterte and China president Xi Jinping in Beijing on August 29.
The two leaders are expected to discuss possible joint exploration in the South China Sea.
Both leaders will witness the signing of a number of cooperative bilateral documents and memorandums of understanding covering several projects.
The Philippine Stock Exchange Index after several weeks of decline rose 1.2 percent last week to close 7,889.41 points, while the broader All Shares Index gained 0.6 percent to 4,770.28.
Except for the property index which dipped 0.50 percent, other subs-indices registered week-on-week gains, led by financials (+2.69 percent), industrial (+1.41 percent), services (+1.34 percent), holding firms (+0.59 percent) and mining and oil (+0.28 percent).
Property stocks are expected to retreat after a planned crackdown on Philippine offshore gaming operators, which have been fueling the growth of the real estate industry.
Foreign investors were still on selling mode, as weekly net foreign selling stood at P1.5 billion. The average daily value traded stood at P7.6 billion, down from the previous week’s average of P8.9 billion.
Newly-listed Kepwealth Property Philippines Inc. was last weeks’ top gainer, surging 84 percent to P15. Other top gainers were Phinma Petroleum Geothermal Inc., which climbed 46.3 percent to P7.84; and JG Summit Holdings Inc. which advanced 8.4 percent to P68.80 apiece.
Weekly top price losers were Cirtek Holdings Philippines Inc., which fell 13.3 percent to P10.40; Megaworld Corp., which lost 9.3 percent to P4.80; and Filinvest Land Inc., which dropped 7 percent to P1.59.
Wall Street stocks, meanwhile, finished a bruising session sharply lower Friday, as fresh volleys between Washington and Beijing escalated a grinding trade war and exacerbated recession fears.
The Dow sank more than 600 points, or 2.4 percent, to 25,628.90, pushing the blue-chip index into the red for the fourth straight week.
European stocks also had a rocky day, turning sharply downward after US President Donald Trump vowed a forceful response to a Chinese announcement raising tariffs on $75 billion in US goods.
Trump followed through on the threat after the US market closed Friday, raising the existing and planned tariffs by five percent. Tariffs on $250 billion Chinese goods will go to 30 percent and those planned on $300 billion in Chinese goods go to 15 percent from October 1. With AFP