Trading at the Philippine Stock Exchange is expected to remain sluggish during this shortened trading week after the index failed to breach the 7,900-point level despite the better-than-expected March inflation rate.
“Trading will likely remain subdued on Monday especially if we draw on Friday’s muted reaction to the well-received inflation print. A holiday on Tuesday could also contribute to another quiet day,” said Papa Securities trader Gabriel Jose Perez.
Analysts said concerns of rising oil prices, declining industrial production, and lower economic growth forecast were also affecting investor sentiment.
The World Bank last week lowered its growth forecasts for the Philippine economy, citing the threat of an intensified El Niño and the failure of lawmakers to pass the 2019 national budget.
The bank said the Philippine gross domestic product would likely grow 6.4 percent this year instead of 6.5 percent, and 6.5 percent in 2020 instead of 6.6 percent.
Investors, however, will continue to monitor trade talks between the United States and China, which are reportedly in their final stretch.
The Philippine Stock Exchange Index last week declined 0.6 percent to 7,873.18, while the broader All Shares Index dipped 0.34 percent to 4,846.99. There was some bargain hunting after weighing the better-than-expected inflation rate.
Except for industrial index, which inched up 0.2 percent, all sub-indices posted week-on-week declines led by mining and oil (-2.5 percent), financials (-1.2 percent), services (-1 percent), property (-1 percent) and holding firms (0.05 percent).
Foreign investors were net buyers for the week by P2.86 billion, the while average daily value traded stood at P5.5 billion.
Weekly top price gainers were Phinma Energy Corp., which jumped 13.4 percent to P1.64, Shakey’s Pizza Asia Ventures Inc. which rose 10.3 percent to P13.30, and Bloomberry Resorts Corp., which advanced 7 percent to P12.84.
Weekly top price losers, meanwhile, were Cemex Holdings Inc., which slumped 23 percent to P2.02, Pilipinas Shell Petroleum Corp. which dropped 6.8 percent to P46 and Metro Pacific Investments Corp., which slipped 5.5 percent to P4.58.
The British pound retreated Friday after London requested another extension in the long-running Brexit saga while global stocks rose modestly on US-China trade talk hopes and solid US jobs data.
British Prime Minister Theresa May asked the European Union to delay Britain’s departure until June 30, while the bloc itself suggested that it might be best to postpone the split for up to a year.
As so often before, sheer uncertainty over Britain’s future weighed on sterling but the currency’s downside was limited by expectations that the exit from the EU will be softened by some kind of agreement with the bloc.
“As far as most currency traders are concerned the chances of a no-deal remain remote—but at the same time a satisfactory outcome anytime soon also seems highly unlikely,” said XTB analyst David Cheetham.
In stock market deals London gained solidly as the pound slid, while Paris and Frankfurt had only small gains to show for the day’s trading.