Stocks are likely to test the 7,800-point level this week, but the gains may be limited by the upcoming holidays in the US and China, analysts said over the weekend.
F. Yap Securities investment analyst Jason Escartin said the upcoming US President’s Day and Chinese Lunar Year would limit trading volume this week, when some fund managers were likely to enjoy their holiday break.
Escartin said the market would also continue to face headwinds as the index attempted to reach the 8,000 level. He said given the scenario, investors should seize opportunities on lulls and position selectively. Immediate support is estimated at 7,700 and resistance at a range of 7,850 to 7,900.
The bellwether Philippine Stock Exchange index rose 0.59 percent last week to close at 7,773.45 on Friday, while the broader all-share index climbed 0.21 percent to 4,506.
The PSEi punctured the 7,800 level for the first time last week, reaching an intraday high of 7,807.71 on positive domestic earnings’ growth in the fourth quarter before closing lower.
Uncertainties in foreign markets such as Greek debt negotiations and instability in Ukraine slowed investors’ activities and forced the market to close below the 7,800 level.
Services grew 1.03 percent, while the industrial sector and holding companies rose 0.83 percent and 0.33 percent, respectively.
Mining and oil sub-index declined 1.78 percent, while the property and financial sub-indices dipped 0.05 and 0.02 percent, respectively.
Overseas investors were net buyers by P3.81 billion last week, as total foreign buying reached P33.9 billion, while total foreign selling amounted to P30.06 billion.
The average daily turnover settled at P11.25 billion, down from the previous week’s average of P12.78 billion.
Top gainers last week were Federal Resources Investments Corp., which gained 23.1 percent to P22.65; 2Go Group Inc., which climbed 22.5 percent to P5.05; and NiHao Mineral Resources International Inc., which advanced 14.4 percent to P3.25.
Heavy losers included Makati Finance Corp., which dropped 13.5 percent to P3.63; Euro-Med Laboratories Philippines Inc., which declined 12.1 percent; and Manila Mining Corp “B” shares which fell 11.7 percent to P0.015.