Stocks are seen moving sideways this week, as the disappointing first-quarter economic figures tempered investors’ positive sentiments.
Analysts said the market’s guarded optimism stance could limit gains, as investors were now looking for fresh positive developments to justify a rally.
“While 1Q17 GDP data fell below expectations, the market is still upbeat on recovery prospects for the remainder this year as projects are rolled-out and budgets are deployed,” 2TradeAsia.com said.
“The only counter would be in timing of construction, with the rainy season ahead. Overall, investors will keep a tab on joint venture deals that would arise from the administration’s ‘Build, Build, Build’ agenda, including financing concessions and other arrangements,” 2TradeAsia.com said.
Local investors are also expected to reposition their portfolio with the upcoming initial public offerings of Eagle Cement Corp. and Cebu Landmasters Inc.
The Philippine Stock Exchange index, the 30-company benchmark, closed lower last week by 0.6 percent to 7,767.62 on May 20, on weaker-than-expected growth in the domestic economy.
Except for the holding firms which inched up 0.2 percent, all other sub-indices were in the red led by services which decided 2.5 percent, industrial which dipped 0.9 percent and property which dropped 0.9 percent.
Foreign investors were net buyers by P272 million, while average daily turnover declined to P7.4 billion from last week’s average of P10.8 billion.
The government announced a GDP growth of 6.4 percent in the first quarter, below the government’s 6.5 percent to 7.5 percent target for the year. The first-quarter growth figure was also slower than 6.6 percent posted in the fourth quarter and 6.9 percent in the first quarter of 2016.
Top gainers last week were Emperador Inc.,the liquor unit of tycoon Andrew Tan which advanced 6.2 percent to P6.82 and Alliance Global Group Inc., the holding company of Tan which climbed 5.5 percent to P14.90. Logistics company 2Go Inc. rose 4.4 percent to P17.24.
Heavy losers included restaurant chain operator Max’s Group Inc. which dipped 12.3 percent to P18.50, Pilipinas Shell Petroleum Corp. which declined 5.8 percent to P67.80 and First Gen Corp. which shed 5.2 percent to P19.68.