Share prices are expected trade sideways this week with a downward bias due to the deepening crisis between Russia and Ukraine.
The US government over the weekend warned Russia could invade Ukraine in days because of the massive movements of the Russian military near the Ukrainian border.
Oil prices in the world market as a result spiked to an eight-year high.
Investors are also monitoring the February 17 meeting of the local Monetary Board to look for clues on future interest rate decisions. Analysts are already expecting the US Federal Reserve to implement a rate hike by early March.
“Despite reassurances that tightening would not come until much later in the cycle, there will be increased pressure on this end, particularly amid the onset of summer season coinciding with elections,” online brokerage firm 2TradeAsia.com said.
The Philippine Stock Exchange Index last week dropped 2.5 percent to 7,250 on worries of the US rate hike. The index hit a high a 12-month high of 7,552 last week week but failed to sustained the momentun due to sell-offs.
“The week’s close at 7,270.36 highlights strong resistance exists at the 7,500 level,” BDO Unibank Inc. chief investment strategist Jonathan Ravelas said.
“With the market’s failure to stay about the 7,500 level, we are bound to consolidate anew within the 7000 to 7,350 level,” he added.
Four of the six sectoral indices ended in the red, namely holding firms (-5.4 percent), services (-2.7 percent), industrial (-2.2 percent) and financials (-1.2 percent).
But the mining and oil index rose by 3.8 percent while property climbed 2.1 percent.
Foreign investors were net buyers for the week by P5.7 billion, while the value turnover improved increased 51 percent to P11.6 billion.
Weekly top gainers were Monde Nissin Corp, which advanced 13.1 percent to P18.16; 8990 Holdings Inc., which climbed 9.7 percent to P12.98; and ABS-CBN Corp., which rose 7.3 percent to P13.58.
Weekly top price losers were Globe Telecom Inc., which declined 15.4 percent to P2,690; Wilcon Depot Inc., which dropped 8.9 percent to P26.50; and JG Summit Holdings Corp., which fell 7.5 percent to P57.10.
Meanwhile, Wall Street stocks tumbled and oil prices surged Friday as White House warnings of a possibly imminent Russian invasion of Ukraine reverberated through financial markets.
Markets lurched during a briefing by US National Security Advisor Jake Sullivan, who said a Russian invasion could “begin at any time,” including during the Beijing Winter Olympics.
“If a Russian attack on Ukraine proceeds, it is likely to begin with aerial bombing and missile attacks that could obviously kill civilians,” Sullivan said. “Any American in Ukraine should leave as soon as possible, and in any event in the next 24 to 48 hours.”
Investors had become less worried about an imminent invasion of Ukraine in recent days following Western diplomacy with Russian President Vladimir Putin.
But stocks tumbled after Sullivan’s remarks, with the S&P 500 ultimately losing 1.9 percent.
Analysts said the sell-off was likely heightened by the timing just before the weekend, with investors shifting into a “risk-off” mode to reduce their exposure for the two days when there is no trading. With AFP