Stocks are expected to move sideways this week, as investors position ahead of the US Federal Reserve’s policy meeting this month.
Analysts said investors would closely watch the statement of US Federal Reserve chair Janet Yellen ahead of the central bank’s policy meeting on June 14 to 15.
The lack of corporate developments in the local front could also push investors to turn their attention to political developments ahead of June 30, when Davao City Mayor Rodrigo Duterte will formally assume the presidency.
“In the weeks to come, [amid expected] absent significant corporate news, investors may likely trade on any business-altering developments the new administration may hint towards in the days leading to Duterte’s inauguration ceremonies on June 30,” RCBC Securities analyst Anton Alfonso said.
The Philippine Stock Exchange index, the 30-company benchmark, last week managed to stay above the 7,500-point level, gaining 1.4 percent to close at 7,514.22 on June 3, as investors were treated to a handful of huge corporate deals early in the week.
The broader all-share index also went up by 1.3 percent to settle at 4,491.73.
Except for the mining and oil index which declined 1 percent, all major sub-indices ended in the green, led by services which climbed 6.4 percent and holding firms which advanced 1.4 percent.
Foreign investors were net buyers of P3.94 billion, as total foreign buying hit P42.02 billion while foreign selling amounted to P38.07 billion.
Average daily turnover improved to P13.8 billion from previous week’s average of P10.1 billion.
Top gainers last week were Max’s Group Inc. which rose 15.1 percent to P28.20, Philippine Long Distance Telephone Co. which surged 13.7 percent to P1,980 and LT Group Inc. which gained 10.2 percent to P15.50.
Heavy losers were Liberty Telecoms Holdings Inc. which dropped 29.3 percent to P3.18 and Xurpas Inc. which lost 6.7 percent to P16.40.