Trading at the stock market will remain volatile this week amid the tension in Eastern Europe.
Analysts said there would be risk-off sentiment this week because of the Russia-Ukraine conflict.
Investors are concerned about the impact of the Russia-Ukraine conflict on oil prices and inflation. Oil prices in the world market surged $100 per barrel last week.
Local pump prices are expected to go up for the ninth consecutive week, with gasoline increasing by P0.80 per litter, and diesel and kerosene by P0.65 and liter P0.45, respectively.
Online brokerage firm Utrade.com.ph said how the conflict develops and how oil prices react will largely dictate the market’s movement this week.
BDO Unibank Inc. chief investment strategist Jonathan Ravelas said the market may continue to consolidate within 7,000 to 7,350 points over the near term period. If the Philippine Stock Exchange Index drops below 7,000 points, Ravelas said it could lead to further losses toward the 6,500 to 6,800 level.
The PSEi last week sank 2.8percent to 7,212.23, while the broader All Shares Index declined 2.1 percent to 3,842.85.
Except for the mining and oil index, which rose 3.4 percent week-on-week, all other counters ended in the red, led buy industrial which dropped by 4.1 percent; holding firms, which fell 2.9 percent; and property, financials and services which dropped 2.9 percent, 2.5 percent and 1.6 percent, respectively.
Foreign investors were net buyers for the week by P1.62 billion, while the average daily value reached P10 billion from the previous week’s average of P9.1 billion.
Weekly top price gainers were Nickel Asia Corp., which jumped 12.5 percent to P7.75; PXP Energy Corp., which rose11.4 percent to P6.55; and Philex Mining Corp., which climbed 6.3 percent to P6.06.
Weekly top price losers were newly listed firms Figaro Coffee Group Inc., which declined 18.5 percent to P0.66; and Haus Talk Inc., which dropped 11.8 percent to P0.97. Manila Water Co Inc. fell 6.9 percent to P20.85.
Meanwhile, global stocks mostly rose Friday while oil prices declined from 2014 peaks despite unease that Russia’s invasion of Ukraine would drive commodity prices up.
In Europe, the three main indices all closed more than three percent higher, recovering most if not all of the previous day’s losses, as Western nations held off from imposing sanctions that would cripple critical sales of Russian oil and gas.
And Wall Street also scored further gains after ending Thursday in positive territory after the US announced its sanctions package.
Asian equities also mostly bounced back.
“It’s a remarkable turnaround when you consider that the invasion is still taking place and sanctions are being drawn up,” said market analyst Craig Erlam at trading platform OANDA.
“With oil trading back below $100 a barrel and gas prices falling after yesterday’s surge, it would appear traders are anticipating minimal disruption to Russian exports either directly as a result of the invasion or from sanctions imposed,” he added.
“The latter is understandable as the proposed measures so far have underwhelmed, to say the least,” Erlam said. With AFP