Stocks are expected to move sideways this week, as investors remain defensive on concerns over rising inflation and interest rates and other developments overseas.
Analysts said investors turned defensive on expected increase in interests rates this year and possible hike in inflation on rising oil prices.
“Chartwise, the week’s close at 7,238.52 highlights it hit resistance at the 7,402.54 levels. Continue to see the market to range between 7,000 [and] 7,400 levels. Only a break above the 7,500 levels will call the bulls back to play,” BDO Unibank chief investment strategist Jonathan Ravelas said.
Investors are also cautious while waiting for clearer economic and fiscal policies from US President-elect Donald Trump and his administration.
Analysts said investors might only be encouraged to return to the market once the earning season started next month.
The 30-company Philippine Stock Exchange index ended flat last week at 7,238 on Jan. 13, while the broader all-share index inched up by 0.2 percent to 4,360, as the market succumbed to profit-taking in the latter part of the trading week after the previous week’s strong runup.
The major indices ended mixed as financials, holding firms, property and mining and oil closed lower from a week ago while industrial and services posted week-on-week gains.
Foreign investors remained net buyers last week by P684 million, while average daily turnover slipped to P6.5 billion from the previous week’s P7.2 billion.
Top gainers last week included Arthaland Corp. which surged 34.7 percent to P0.62, ABS-CBN Corp. which jumped 8 percent to P48 per share and D&L Industries Inc. which climbed 6.8 percent to P12.60.
Heavy losers were Nickel Asia Corp. which slipped 11.1 percent to P7.33, Global Ferronickel Holdings Inc. which dropped 8 percent to P3 and LT Group Inc. which declined 7.6 percent to P12.20.