Stocks are expected to keep moving sideways this week, with the benchmark index likely to test the 7,300-point level as more companies release their 2016 financial reports.
BDO Unibank Inc. chief investment strategist Jonathan Ravelas said the renewed rate hike fears in the US following Fed Chair Janet Yellen’s statement in Congress was causing local players to lighten up their position.
“Chartwise, the week’s close at 7,244.79 continues to suggest the market to remain range-bound between the 7,000 to 7,400 levels in the near term. Only a move above the 7,500 level will call the bulls back to play,” Ravelas said.
AAA Securities trader Justino Calaycay Jr. said the index could break the 7,300 level as more companies release their financial reports.
Calaycay said the market was showing some degree of strength or resilience as the positive performance of financials and property indices could provide opportunities for investors.
“Given the short-term rising value flows on the retreat, the narrow positive breadth and the sustained foreign selling in the last several weeks, investors may need to take a breather and wait for confirmation or invalidation of these patterns before proceeding gung-ho either way,” Calaycay said.
The 30-company Philippine Stock Exchange index rose 0.1 percent over last week’s five-day market trading to close at 7,244.79 on Feb. 17 while the broader all-share index inched up 0.2 percent to 4,388.01.
Major sub-indices ended mixed, with financial, holding firms and property posting week-on-week gains, while mining and oil, services and industrial registered week-on-week declines.
Foreign investors were net sellers by P760 million last week, as total foreign selling reached P20.06 billion while foreign buying amounted to P19.3 billion.
Average daily turnover was also flat at P7.1 billion.
Top gainers last week were Melco Crown (Philippines ) Resorts Corp. which jumped 12.3 percent to P5.10, Filinvest Land Inc. which advanced 7.8 percent to P1.80 and Integrated Microelectronics Inc. which went up 5.7 percent to P6.60.
Heavy losers included Cemex Holdings Philippines Inc. which dropped 8.7 percent to 9.22, 8990 Holdings Inc. which declined 6.8 percent to P6.66 and PLDT Inc. which fell 4.3 percent to P1,455.