Share prices are expected to move sideways this week, as the market continues to consolidate after the government reported a strong third-quarter economic growth.
Analysts said while investors could take a pause during the consolidation period, this could provide opportunities for those with long-term outlook on the market.
“Overall it is normal for local equities to go through minor hiccups as some fund managers realign their portfolio either to finance redemption needs or possibly reallocate cash in favor of productive sectors that could deliver higher returns,” online brokerage firm 2TradeAsia.com said.
“During these pauses, however, opportunities arise for those who are able to view (a) bigger picture ahead,” it said.
One catalyst that could encourage investors to remain in the market is the fourth-quarter season spending push which could boost earnings of listed companies.
The 30-company Philippine Stock Exchange index closed lower by 1.4 percent last week to 8,311.08, while the all-share index also declined 1.2 percent to 4,873.82.
The stronger-than-expected third-quarter gross domestic product growth fueled the market’s rally by 104.64 points on Friday and enabled the bellwether to stay above the 8,300-point level.
Except for the industrial index which climbed 1.4 percent, all other sectoral indices declined last week, led by mining and oil (-2.41 percent), property (-2.25 percent), services (-2.08 percent), holding firms (-1.20 percent) and financial (-1.2 percent).
Foreign investors were net sellers by P2.9 billion last week, while average daily turnover amounted to P7.3 billion.
Top gainers last week were Manila Electric Co. which climbed 9.2 percent to P322, D&L Industries Inc. which advanced 3.7 percent to P10.64 and Jollibee Foods Corp. which rose 3.4 precent to P259.80.
Heavy losers included Integrated Microelectronics Inc. which fell 12.7 percent to P19.46, DMCI Holdings Inc. which dropped 6.4 percent to P14.50 and Puregold Price Club Inc. which dipped 6.1 percent to P47.85.