Share prices are expected to move sideways this week with an upward bias as investors remain optimistic on the further reopening of the economy and the vaccine rollout.
Improved second-quarter earnings results of listed companies and first-semester window dressing could also provide a boost on the market over the short term period.
“Continue to expect the market to range between the 6,700-7,000 levels in the near-term. However, a sustained fall below the 6,700 levels could signal the market could retry the 6,300-6,500 levels and reignite the bears to play,” BDO Unibank chief investment strategist Jonathan Ravelas said.
The upcoming capital raising activities in the equities market could also further improve market sentiments as companies continue tap the the bourse amid the pandemic.
Three real estate investment trust (REIT) offerings and one initial public offering are awaiting approval from the corporate regulators.
These are the RL Commercial REIT of Robinsons Land Corp., Filinvest REIT Corp. of Filivest Land Inc., MREIT Inc. of Megaworld Corp. and Del Monte Philippines Inc.
The Philippine Stock Exchange Index last week last week rose 1.4 percent to 6,950.51 points on bargain hunting, while the broader All Shares Index climbed 1.5 percent to 4,229.58.
Except for the holding firms which slipped 0.07 percent, all counters ended in green led by property which advanced 3.7 percent, industrial which rose 1.9 percent and services which gained1.6 percent.
Foreign investors, however, were net sellers for the week by P2.44 billion, while the average daily value traded dropped P6 billion from the previous week’s average of P9.8 billion.
Weekly top price gainers were Century Properties Group Inc., which jumped 20.4 percent to P0.56, Jollibee Foods Corp., which climbed 7.7 percent to P216, and Manila Water Co. Inc., which increased 6.4 percent to P18.
Weekly top price losers were Philex Mining Corp., which dropped 5.3 percent to P6.36, Security Bank Corp., which fell 4.1 percent to P117.50, and AC Energy Corp., which declined 3.7 percent to P8.18.
Meanwhile, global stocks closed out a strong week with most bourses gaining Friday as markets took a benign view of recent inflation data and greeted progress on a US infrastructure package.
Markets had jumped Thursday after the Bank of England (BoE) maintained its ultra-low interest rates, echoing the views of the US Federal Reserve and the European Central Bank that inflationary spikes are only temporary.
Traders have for months worried that the blistering global recovery will fan price increases and force rate hikes—but central bankers have sought to downplay inflation risks.
“That BoE meeting did alleviate fears of a hawkish swing across the central banks, but ultimately whether the BoE or the Fed are right will come down to the trajectory of inflation over the coming months,” IG analyst Joshua Mahony said.
The Dow suffered its worst week since October last week due in part to a shift in messaging from the Federal Reserve.
But equities recovered this week, as investors greeted statements from Fed Chair Jerome Powell and other top central bankers that signaled no plans for an abrupt pivot in their easy money policies. With AFP