Share prices are expected to drift sideways this week with a positive bias on optimism the US and China will meet on October to discuss trade.
“Bias continues for the index to reach the critical 8k level resistance next week—continue to watch out for US market movement if they return to their recent highs,” said Gabriel Jose Perez, a trader from P2P Trade Online.
Investors are also waiting for the results of the US Fed meeting scheduled on Sept. 19 when an interest rate cut is expected.
Federal Reserve chair Jerome Powell said on Friday the central bank remained committed to sustaining US economic expansion that could signal a possible cut in interest rates.
“The week’s close at 7,933.47 continues to signal the market to consolidate within the 7,700/8,000 levels in the near-term,” said BDO Unibank chief investment strategist Jonathan Ravelas.
The Philippine Stock Exchange Index last week slipped 0.6 percent, snapping a two-week winning streak, to close at 7,933.47, while the broader All Shares Index declined 0.5 percent to 4,785.
The mining and oil index surged 12.4 percent, while the property sector added 1.3 percent after President Duterte announced that offshore gaming operation would continue.
The industrial index declined 1.9 percent followed by services, which fell 1.8 percent. Holding firms dipped lost 0.2 percent.
Foreign investors were net sellers for the week by P2 billion while the average daily value traded stood at P6.7 billion from the previous week’s P10 billion.
Weekly top price gainers were Nickel Asia Corp., which jumped 57.6 percent to P4.32; Phinma Petroleum and Geothermal Inc., which advanced 29.3 percent to P9.78; and Pilipinas Shell Petroleum Corp., which rose 5.1 percent to P33.
Weekly top price losers were BDO Unibank Inc., which fell 4.3 percent to P142.50; Aboitiz Power Corp., which dropped 4.2 percent to P36.20; and Globe Telecom Inc., which dipped 4.1 percent to P1,947.
Global stock markets, meanwhile, posted modest gains on Friday while US jobs data pointed to a possible soft patch for the world’s top economy, dealers said.
Eagerly awaited job creation numbers missed analysts’ forecasts but “fit into the current market narrative” that the US Federal Reserve will cut interest rates this month, Markets.com analyst Neil Wilson said.
Interest rate cuts often boost share prices.
Asian indices had risen earlier in the day on news that the United States and China are to resume high-level trade talks in October.
On Wall Street, the benchmark Dow added 0.3 percent, leaving it up 1.5 percent for the week.
In Washington, the Labor Department said employers added 130,000 net new positions in August, far fewer than analyst forecasts for 171,000, while the jobless rate held steady at 3.7 percent and wages rose.
The headline figure included 25,000 temporary jobs related to the upcoming 2020 population census, which meant hiring by private employers was even weaker.
Data for the two previous months were revised lower as well. The numbers suggest US economic activity is slowing down, reinforcing expectations of interest rate cuts by the US Federal Reserve this year. With AFP