Stocks are expected to track regional markets this week, ahead of the anticipated US Federal Reserve interest rate hike which analysts expect this month.
Brokerage company 2TradeAsia.com said an upward interest rate adjustment could lead to further weakening of the peso against the US dollar, which would keep the investing mood at bay over the short term.
“Markets are seemingly on an early mode of pricing in the possibility of the Fed’s upward interest rate adjustment, which could lend further strength on the greenback and weakness in local currencies. The Philippine peso closed at its intra-week low of P50.40:$1, while net foreign selling in equities widened to P494 million on average, from P209 million previously,” 2TradeAsia.com said.
“Setting aside political noises at home, bulk of funds flow will depend on foreign institutional fund managers’ US jobs data reading and inflation. Overall, this could keep the investing mood at bay for now, until Fed actions are fully factored-in,” the online brokerage firm said.
The Philippine Stock Exchange index, the 30-company benchmark, went down 0.2 percent last week to close at 7,247.12 on March 3, while the all-share index retreated 0.2 percent to 4,385.68.
The sub-indices closed the week on a mixed note, as mining and oil rose 2.7 percent while financials and services increased 0.3 percent and 0.7 percent, respectively.
Property closed lower by 1.1 percent on concerns of rising interest rates while industrials and holding firms shed 0.4 percent and 0.30 percent, respectively.
Foreign investors were net sellers by P2.4 billion last week, while average daily turnover dropped to P5.5 billion from the previous week’s average of P6.4 billion.
Among the top gainers last week were Shakeys Pizza Asia Ventures Inc. which gained 4.6 percent to P12.66, Semirara Mining and Power Corp. which rose 3.7 percent to P146.20 and PLDT Inc. which gained 3.3 percent to P1,447.
Heavy losers were Cemex Holdings Philippines Inc. which declined 14 percent to P8.28, Robinsons Land Corp. which went down 5.5 percent to P23.15 and Megawide Construction Corp. which ended lower by 3.5 percent to P12.30.