Share prices at the Philippine Stock Exchange will likely move sideways this week as investors keep a close eye on the growing tensions between Russian and Ukraine.
US President Joe Biden said over the weekend he believes Russian president Vladimir Putin has decided to invade Ukraine.
A more aggressive US Federal Reserve rate hikes could also influence market trading this week. The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas, on Thursday maintained the benchmark interest rate at a record low of 2 percent on manageable inflation outlook.
BSP Governor and MB chairman Benjamin Diokno, however, said the increased volatility in international oil prices requires close monitoring and appropriate interventions when necessary to arrest potential second-round effects.
The Philippine Stock Exchange Index last week jumped 2 percent to 7,418.79 as local investors bought property and consumer stocks on a manageable inflation outlook and personal spending. The broader All Shares Index rose 1.3 percent to 3,923.69.
Except for the industrial index which slipped 0.6 percent, all other sub-indices ended in the green led by mining and oil which surged 5.1 percent; property, which gained 3.1 percent; holding firms which climbed 3 percent; services which rose 2 percent; and financials which advanced 1 percent.
Foreign investors were net sellers for the week by P1.42 billion, while the average daily value traded stood at P9.2 billion, down from the previous week’s average of P11.58 billion.
Weekly top price gainers were Bllomberry Resorts Corp., which surged 18.9 percent to P6.94; JG Summit Holdings Corp., which rose 8.8 percent to P62.15; and Robinsons Land Corp., which advanced 8.2 percent to P19.50.
Weekly top price losers were Monde Nissin Corp., which fell 11.5 percent to P16.06; Emperador Inc., which dropped 10.2 percent to P20.20; and Converge Information and Communications Technology Solutions Inc., which slipped 3.9 percent to P27.890.
Meanwhile, global stock markets retreated on Friday at the end of a highly volatile week rocked by twists and turns in the Ukraine crisis and concerns about coming interest rate hikes.
Wall Street had already seen a steep drop on Thursday on renewed fears that Russia would soon invade Ukraine, as well as long-running angst about the Federal Reserve’s plans to hike interest rates.
US markets ended lower again on Friday, with the Dow shedding 0.7 percent. The S&P 500 and tech-heavy also closed lower, after starting the session briefly in the black.
“I think given the irrefutable downtrend that we’re in, it’s very hard to find buyers in a market like this,” Maris Ogg of Tower Bridge Advisors said.
In Europe, London’s FTSE 100, the Paris CAC 40 and Frankfurt’s DAX all ended the week in negative territory.
“Markets continue to chop around on these Russia headlines,” said Neil Wilson, analyst at Markets.com.
Shellfire rang out near the frontline between government forces and rebel-held territory in eastern Ukraine, as Kyiv and Washington accused Russia of seeking to provoke an incident to falsely justify an invasion. With AFP