Share prices this week are expected to move sideways, as investors wait for fresh leads on the economy.
Online brokerage firm 2TradeAsia.com said investors were looking for updates on the government’s tax reform package and the progress with the infrastructure program.
Investors who have cashed in on gains after the index’s recent run-up would also prefer to wait for further correction before re-entering the stock market market.
Investors are weighing the market’s capability to go up further.
“The tug-of-war between optimists and pessimists has begun, with varying calls on whether the equities market still has room for upside. ‘Bears’ argue on heady valuation, and that geopolitical tensions could readily tilt the case in their favor,” 2TradeAsia.com said.
Meanwhile, optimists see more room to partake on the last three months of the year, believing the borrowing costs are still benign and could readily provide the boost in share prices based on earnings plus-side.
“Either way, this sentiment variation spells volatility in equities, which could provide capital gains opportunities for those who do their homework diligently,” it added.
The PSEi last week dropped 1.33 percent to 8,171.43 while the broader All Shares Index lost 0.76 percent to 4,841.35 on profit-taking.
All sub-indices were in red, led by property which declined 2.57 percent, industrial which fell 2.22 percent, and mining and oil which dipped 1.28 percent.
The PSEi is still up 19.45 percent in the first nine months of the year, thanks to the market’s recent run-up.
Foreign investors last week were net buyers by P26 billion while the average daily value traded jumped P22.2 billion, boosted by a block sale involving the shares of Energy Development Corp. valued at P64 billion.
Weekly top gainers were Robinsons Retail Holdings Inc., which rose 8.7 percent to P99; Benguet Corp “B” shares which climbed 7.4 percent to P2.04; and Cirtek Holdings Philippines Corp., which advanced 7.1 percent to P40.80 per share.
The weekly top price losers were EDC which dropped 20.5 percent to P5.62; Lopez Holding Corp., which lost 10 percent to P6.04; and Melco Resorts and Entertainment (Philippines) Corp., dropped 7.5 percent to P7.58.