Market poised to track sideways in thin trading

Share prices are expected to continue trading sideways this week as investors try to balance the pressure to take profits and sticking on their portfolio amid the positive outlook on the economy.

The stock market will have a regular trading from Monday to Wednesday which have been declared holiday by the government because of the Asean summit. But analysts said the trading could be thin this week as most investors could be on a holiday.

Investor are looking look for the favorable outcome of Asean Ministers and Asean Leaders’ meeting, including foreign investments and trade deals as well as greater cooperation among Asean countries. 

Since most of the companies have released their third quarter financial reports, investors are likely to look for other catalysts that could move the market higher.

BDO Unibank chief investment strategist Jonathan Ravelas said the positive investors’ sentiments on the third corporate earnings report caused the market to rally over the recent weeks.

With third quarter earnings generally within market’s expectations, sentiments that earnings could further accelerate in the fourth quarter of the year could be a factor and propel the market to retest the 8,600-point level.

“Chartwise, the week’s close at 8,433.48 highlights the market could still try another assault towards the 8,600 levels in the near-term,” Ravelas said.

Immediate support and resistance is seen at 8,300 and 8,600 levels, respectively. 

The PSEi last week gained 0.68 percent to 8,433.48, while the broader All Shares Index inched up 0.67 percent o 4,931.86.

Foreign investors were net sellers by just P39 million, while the average daily value traded stood at P7.76 billion, down from the previous week’s average of P8.6 billion.

Weekly top price gainers were Italpinas Development Corp., which surged 113 percent to P16.82 per share; Ginebra San Miguel Inc. which advanced 67.3 percent to P26; and San Miiguel Pure Foods Co. Inc., which surged 62.3 percent to P500.

Weekly top price losers were Rizal Commercial Banking Corp., which declined 7.9 percent to P54.15; Semirara Mining and Power Corp., which fell7.2 percent to P38.30; and Cemex Holdings Philippines Inc., which dropped 6.6 percent to P4.10.

Global stock markets retreated Friday, extending the previous session’s losses, as uncertainty over US President Donald Trump’s much-vaunted tax cuts and lackluster corporate earnings took their toll on investor confidence.

At the close of the trading day in New York, the Dow Jones Industrial Average snapped an eight-week winning streak, closing 0.2 percent lower, while the broad S&P 500 and tech-dominated Nasdaq were essentially flat. With AFP

Senate Republicans on Thursday released a tax plan that would put off promised steep corporate tax cuts for a year, and there was little in the way of US economic data to move markets in any direction as the quarterly earnings season winds down.

The Dow and Nasdaq have soared about 30 percent since Trump’s 2016 election victory on hopes of slashed taxes and regulation. But Phil Davis of PSW investments told AFP the prospect of delayed tax cuts had taken much of the wind out of Wall Street’s sails.

Topics: stock market , Asean summit , BDO Unibank , Jonathan Ravelas
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