Share prices will likely keep a sideways trading during this shortened trading week as investors remain vigilant about developments both here and abroad.
“We’ll need to remain vigilant for developing news abroad as these have driven much of the market’s movement the past week. Recall how emerging markets fell earlier in the week due to the currency crisis in Turkey,” Gio Perer, a trader at Papa Securities, said.
BDO Unibank Inc chief investment strategist Jonathan Ravelas said investors were staying on the sidelines while watching developments both here and abroad.
“Chartwise, the week’s close at 7,583.52 highlights some supports exists at the 7,500 levels. If buying support continues, expect another attempt at 7,800 levels. However, a break below the 7,500 levels could call for further losses towards the 7,000 levels,” Ravelas said.
In the local front, investors are awaiting developments on the second package of the government’s tax reform program and efforts to contain inflation.
The Philippine Stock Exchange Index lost 2.84 percent last week to 7,583.52, while the broader All Shares index declined 2.3 percent to 4,606.69. The ongoing Turkey financial crisis has dragged down the global markets.
All subindices were in the red led by mining and oil (-4.25 percent), holding firms (-3.29 percent), financial (-3.14 percent), property (-3.04 percent), service (-1.51 percent) and industrial (1.42 percent).
Foreign investors were net sellers by P4.7 billion, while the average daily value traded stood at P5.3 billion, down from the previous week’s average of P6.8 billion.
Weekly top price gainers were AgriNurture Inc.,which advanced 8.2 percent to P16.84; Metro Retail Stores Group Inc., which climbed 5.2 percent to P3.02; and Vista Land & Lifescapes Inc., which rose 5.1 percent to P6.35.
Weekly top price losers were GT Capital Holdings Inc., which slumped 8.7 percent
to P895; JG Summit Holdings Inc., which tumbled 8.6 percent to P53.50; and Aboitiz Equity Ventures Inc., which dropped 7.2 percent to P56.
The rest of Asian markets were on the rise Friday following strong leads from Wall Street and Europe, with investors cautiously optimistic about upcoming US-China trade talks.
Negotiators from Washington and Beijing will meet later this month in the first publicly announced meeting in weeks on their bitter trade dispute, which has seen both sides impose reciprocal tariffs on goods worth $34 billion.
The news helped global markets regain composure after several days of volatility sparked by fears that Turkey’s financial crisis could infect other economies.
Tokyo’s benchmark Nikkei 225 index closed 0.35 percent higher, and Sydney ended up 0.2 percent.
Hong Kong’s Hang Seng index was up 0.4 percent and Singapore rose 0.3 percent in afternoon Asian trade, but Shanghai was down 0.6 percent.
Despite the positive wave through world markets after several nervous days, analysts have said a quick resolution of the trade spat between the world’s top two economies is unlikely, with more US tariffs in the works on more Chinese goods. With AFP