The stock market is expected to move sideways this week, as investors await the outcome of the policy meeting of Bangko Sentral ng Pilipinas following the recent decision by the US Federal Reserve to raise benchmark rates by 25 basis points.
“This will be the final meeting of outgoing BSP chief [Amando] Tetangco. However, consensus point towards an unchanged rate as May’s inflation settled lower at 3.1 percent. The same might prevail towards early 3Q, with crude futures trailing at the low-end,” 2TradeAsia.com said.
“Moving forward, BSP is seen to raise benchmark rates by at least 25 bps before the year ends, to keep pace with benchmark securities and expectations of improved demand in 2H [second half] that may support higher pricing,” it said.
BDO Unibank chief investment strategist Jonathan Ravelas said he expected the index to continue to trade between 7,700 and 8,000 levels.
Immediate support and resistance are seen at 7,650 and 8,000 levels, respectively.
The PSE index, the 30-company benchmark, ended lower by 1.4 percent last week to close at 7,882.22 on June 16, while the all-share index fell 1.1 percent to 4,695.15, on profit taking activities after the US Fed raised its policy rate for the second time this year.
All subindices ended in the red led by property which dropped 1.9 percent, holding firms which declined 1.84 percent and financials which went down 1.3 percent.
Foreign investors remained net buyers last week, as overseas buying reached P39.15 billion while foreign selling amounted to P13.15 billion.
Average daily turnover jumped to P17.8 billion from the previous week’s average of P8.8 billion.
Top gainers last week were Philweb Corp. which climbed 8.2 percent to P11.10, Vista Land & Lifescapes Inc. which rose 4 percent to P5.95 and Wilcon Depot Inc. which advanced 3.5 percent to P6.82.
Heavy losers included Manila Water Co. Inc. which declined 8.5 percent to P30, Rizal Commercial Banking Corp. which dipped 8.1 percent to P56.20 and Lopez Holdings Corp. which shed 5.1 percent to P7.20.