Share prices are expected to be muted on thin volume during this shortened trading week.
Financial markets will be closed on Thursday and Friday in observance of the lenten season.
BDO Unibank Inc. chief investment strategist Jonathan Ravelas said fears of a rapid rate increase in US is affecting global investor sentiment. Traders fear that an aggressive rate hike could temper economic growth and reduce corporate earnings.
“Concerns on domestic inflation likely breaking the high-end of the target range of the Bangko Sentral ng Pilipinas in succeeding months also added to the negative sentiments,” said Ravelas.
In addition, the recent reported surge in COVID-19 cases in many countries has affected investor sentiments.
Amid current market volatility, investors are advised to look out for opportunities to accumulate on stocks that are expected to sustain growth over the long term period.
The Philippine Stock Exchange Index last week slipped 1.9 percent to 7.018.02 amid volatile trading conditions. The index dropped to as low as 6,926.03 points before recovering to above 7,000 on concerns about rising interest rates.
Except for the mining and oil index, all sub-indices registered week-on-week declines. Holding firms dropped 3.8 percent; property fell 1.2 percent; financials declined 0.8 percent; industrial slipped 0.8 percent; and services dipped 0.4 percent.
Foreign investors were net sellers by P938 million, while the average daily value traded fell to P4.7 billion from the previous week’s average of P6 billion.
Weekly top price gainers were Vista Land & Lifescapes Inc., which advanced 5.4 percent to P2.73; Puregold Price Club Inc., which climbed 3.6 percent to P37; and PLDT Inc., which rose 2.5 percent to P1,840.
Weekly top price losers were Wilcon Depot Inc., which slid 7.2 percent to P25.15; JG Summit Holdings Inc., which declined 5.8 percent to P56.60; and Manila Water Co. Inc., which fell 5.3 percent to P19.70.
Meanwhile, Wall Street stocks mostly fell Friday amid lingering unease over tightening US monetary policy, while the euro gyrated ahead of France’s presidential election.
Both the S&P 500 and Nasdaq retreated as the yield on the 10-year US Treasury note climbed above 2.7 percent, a signal markets are preparing for more Federal Reserve monetary tightening.
All three major US indices notched losses for the week.
“Uneasiness and trepidation appeared to drive a relatively quiet session as investors continued to weigh the potential implications of a highly aggressive Fed monetary policy tightening cycle,” Charles Schwab investment bank said in a note.
The euro sank as low to $1.0837 before bouncing back, a reflection of uncertainty ahead of Sunday’s first-round French presidential vote.
The single currency has also been dented by European officials’ reticence to move as aggressively as the Fed on tackling soaring inflation.
The volatility in the euro comes as polls show a tight race by French President Emmanuel Macron and his main election rival, far-right leader Marine Le Pen.
The president is projected to come out on top in Sunday’s first round of voting, but far short of the majority needed to avoid a run-off between the top two candidates on April 24—and with Le Pen close behind. With AFP