Stocks are expected to move sideways this week, as investors remain cautious over ‘Brexit’ fears and other developments overseas.
The strong US jobs data released over the weekend could also renew concerns about a possible US rate hike by the Federal Reserve, analysts said.
US Bureau of Labor Statistics reported over the weekend that total non-farm payroll employment in the US increased 287,000 in June, much higher than the revised 11,000 in May. US unemployment rate rose slightly to 4.9 percent in June.
Other global economic data set to be released this week are China’s second-quarter gross domestic product and trade balance, US retail sales and the Philippines’ May export figures.
Luis Limlingan, managing director of Regina Capital Development Corp., said range trading strategy was expected to persist over the short term as volatility remained strong.
“We are more focused on watching resistance points between 7,870 and 7,900 as continuous consolidation at this level will increase risk of a possible downward reversal, this prompting us to take profits already,” Limlingan said.
The bellwether Philippine Stock Exchange index ended the week at 7,771.52 on July 8, down by 0.8 percent from previous week’s close on profit taking and renewed concerns over ‘post-Brexit’ developments, referring to the United Kingdom’s vote to exit the European Union.
The broader all-share index also closed lower by 0.5 percent to 4,713.90.
Except for financial (up 0.1 percent) and mining and oil (up 0.4 percent), all other sub-indices ended in the red led by industrial (down 1.5 percent) and property (down 0.7 percent).
Foreign investors remained net buyers last week by P2.9 billion, as total foreign buying reached P17.34 billion while foreign selling amounted to P14.42 billion.
Top gainers last week were Metro Retail Stores Group Inc. which climbed 10.4 percent to P4.75, Nickel Asia Corp. which rose 9.9 percent to P5.53 and Puregold Price Club Inc. which went up 5.5 percent to P44.90.
Heavy losers included Petron Corp. which dipped 6.5 percent to P10.28, Golden Haven Memorial Park Inc. which dropped 6.3 percent to P18 and Aboitiz Power Corp. which went down 4.1 percent to P44.