Market likely to extend gains

Stocks are expected to move sideways with an upward momentum this week, as the US and China took steps to finalize a trade agreement that has long been derailed.

Analysts said a partial trade deal which would enable China to purchase up to $40 billion to $50 billion worth of agricultural products from the US and prompt the US in return to suspend the tariff hike on Chinese goods would ease the tension between the world’s two largest economies.

 “Moves next week would likely be swayed by any developments in Trump and the Chinese vice premier’s meeting soon. Resistance is only a few points away at the 7,900 to 8,000 mark,” Papa Securities trader Jose Perez said.

After four weeks of decline, the Philippine Stock Exchange index, the 30-company benchmark, climbed 1.89 percent last week to close at 7,849.94 on Oct. 11 on renewed optimism over the US-China talks. The broader all-share index ended at 4,741.49, up 1.41 percent week-on-week.

Bargain hunting and the initial public offerings of Axelum Resources Corp. and AllHome Corp. last helped push the market higher.

All major sub-indices ended in the green led by mining and oil which climbed 3.79 percent, followed by property which advanced 2.96 percent and holding firms which rose 1.91 percent. The industrial sector also went up by 1.57 percent while services and financial sectors increased by 1.04 percent and 0.86 percent, respectively.

Foreign investors were net buyers last week by P3.1 billion as average daily turnover was steady at P7.3 billion.

Top gainers last week were Phinma Petroleum and Geothermal Inc. which jumped 24.7 percent to P10.50, DMCI Holdings Inc. which climbed 6.6 percent to P9 and Jollibee Foods Corp. which advanced 5 percent to P231.20.

Heavy losers included Phinma Corp. which declined by 4.6 percent to P9.44, Alliance Global Group Inc. which dropped 4.4 percent to P10.78 and Del Monte Pacific Ltd. which lost 4.2 percent to P5.65.