Share prices are expected to move sideways during this week’s shortened trading period, ahead of Manila’s hosting of the Association of Southeast Asian Nations meetings.
Luis Limlingan, managing director of Regina Capital Development Corp., said the market could take a cue from the upcoming Asean meetings that would discuss investment and trade within the region on April 26 to 30.
Offices and schools in several cities in Metro Manila will be closed on April 27 and 28.
“There is the possibility of earlier window-dressing due to the shortened trading period. In addition, markets may react to the upcoming French elections and incoming US data will be focusing on purchasing manager’s index and home sales,” Limlingan said.
BDO Unibank Inc. chief investment strategist Jonathan Ravelas said market participants remained on the sidelines last week, as they awaited the first-quarter corporate earnings report.
“Chartwise, the week’s close at 7,578.16 suggests the market to consolidate in the 7,500 to 7,600 levels in the near-term,” Ravelas said.
The Philippine Stock Exchange index, the 30-company benchmark, dropped 0.7 percent over last week’s five-day market trading to close at 7,578.16 on April 21, while the broader all-share index slid 0.5 percent to 4,532.10.
The market’s decline was largely due to a confluence of geopolitical uncertainties and global decline in crude prices, according to analysts.
Services posted the biggest weekly drop among the sub-indices, as it fell 2.2 percent. It was followed by mining and oil which dropped 1.4 percent and industrial which went down 1 percent.
Foreign investors were net sellers by P1.18 billion last week, while the average daily turnover reached P10.6 billion.
Top gainers last week were Rizal Commercial Banking Corp. which jumped 23.1 percent to P48, DMCI Holdings Inc. which rose 5.1 percent to P12.78 and Philippine National Bank which climbed 4.6 percent to P60.15.
Heavy losers included GMA Network Inc. which retreated 12 percent to P6.20, GT Capital Holdings Inc. which went down 5.3 percent to P1,208 and PLDT Inc. which fell 4.61 percent to P1,698.