Trading at the Philippine Stock Exchange is expected to draw strength from the seasonal portfolio realignment as a result of window dressing that takes place near the end of the quarter, analysts said over the weekend.
Analysts said the market’s current sideways movement could also push investors to accumulate on stocks that were expected to perform well in the second half.
“Portfolio realignment as a result of the quarter-end season would likely take center stage this week, as fund managers prepare their refreshed basket weighting for the second semestral wave,” 2TradeAsia.com said.
“Interest might skew towards sectors set to benefit during the fourth-quarter drive, specifically infra- and allied construction-related undertakings, as well as consumer-spending plays,” it said.
Analysts said the market’s current sideways movement indicated it was gathering momentum for the next climb.
Given the positive outlook on the domestic economy and sound fundamentals and the nation’s ability to weather out political or economic storm, the local equities market was expected to sustain its upward channel, they said.
The PSE index, the 30-company benchmark, week closed lower by 0.9 percent last week to 7,814.17 on June 23, while the all-share index also dropped 0.3 percent to 4,679.29 amid the continued weakness in crude oil prices.
Investors also took profit, ahead of the long weekend.
Major sub-indices ended mixed with financials, holding firms and mining and oil closing higher while services, property and industrial declined.
Foreign investors were net buyers by P94.9 million last week.
Top gainers were Wilcon Depot Inc. which jumped 15.8 percent to P7.90; Travellers International Hotel Group Inc. which climbed 11.1 percent to P3.40; and Emperador Inc. which advanced 7.5 percent to P7.47.
Heavy losers included Belle Corp., which dropped 5.5 percent to P3.78, LT Group Inc. which retreated 4.8 percent to P14.48 and Ayala Land Inc. which went down 4.1 percent to P39.45.