Trading at the Philippine Stock Exchange is expected to remain volatile this week amid economic uncertainties and jitters over the incoming new administration.
Analysts said rising inflation and interest rates remain the top concern of investors as these factors could slow down the recovery of the domestic economy.
Investors will be monitoring the plans and policies of the incoming administration, especially in ensuring the growth of the domestic economy.
“Experts have guided that the new Marcos administration will be polarizing but capital markets so far welcome the return of familiar names for critical cabinet positions in the cabinet,” online brokerage firm 2TradeAsia.com said.
“The economic team spanning from the BSP (Bangko Sentral ng Pilipinas) to the finance bureau being composed of technocrats that were part of previous landmark-GDP growth runs should provide some calm, especially when the country’s investment grade rating comes into question, in lieu of less favorable fiscal position, elevated inflation and post-pandemic fundamentals,” it added.
The Philippine Stock Exchange Index last week slipped 0.3 percent to close 6,726.14 after the BSP hinted another rate hike in the upcoming June meeting, while the broader All Shares Index declined 0.5 percent to 3,596.13.
Five of the six sectoral indices registered week-on-week decreases, led by financials, which fell 1 percent; holding firms dropped 0.6 percent; mining and oil dipped 0.3 percent; property lost 0.3 percent; and industrial dipped 0.2 percent. The services index, meanwhile, rose 0.6 percent.
Foreign selling accelerated to P9.8 billion last week from the previous week’s P623 million, the while average daily value traded rose to P8.9 billion from the previous week’s average of P7.6 billion.
Weekly top price gainers were Manila Water Co. Inc., which advanced 7.5 percent to P18.70; Aboitiz Equity Ventures Inc. which rose 6.2 percent to P51; and International Container Terminal Services Inc., which climbed 5.9 percent to P222.80.
Weekly top price losers were DITO CME Holdings Corp., which dropped 7.5 percent to P4.57; First Gen Corp., which declined 6.1 percent to P19.20; and Bloomberry Resorts Corp., which fell 5.4 percent to P6.25.
Meanwhile, global stocks pushed higher on Friday, with US indices snapping a slump of weekly losses, while oil prices rallied to their highest level in two months.
Following a positive day in European and Asian stock bourses, Wall Street stocks enjoyed another session entirely in positive territory, finishing higher for a third straight session.
It’s been a blistering 2022 thus far for US equities as the Federal Reserve has launched aggressive steps to tighten monetary policy in response to inflation.
But the Dow finished at 33,212.96, up 1.8 percent for the day or 6.2 percent for the week. The index had posted weekly losses the last eight weeks.
“The market itself was oversold and we knew that we were overdue for a bounce,” Quincy Krosby, chief equity strategist of LPL Financial. With AFP