The stock market is expected to sustain last week’s advance, with the benchmark Philippine Stock Exchange index likely to return to the 7,000-point level, analysts said over the weekend.
Analysts said the upcoming initial public offerings of several companies could also lure investors back into the market.
“We expect follow-up advanced on PSEi this week as oversold rallies have been triggered and momentum indicators have shown a short-term reversal,” Regina Capital and Development Corp. managing director Luis Limlingan said.
Limlingan said he expected the index thhis week to trade between 7,044 and 7,093. He said if the 7,100 level was breached, the market could extend the rally to 7,160.
Investors will closely monitor the release of third-quarter gross domestic product data on Thursday as basis for further optimism.
The PSEi gained 0.5 percent over last week’s shortened trading period, amid the country’s hosting of the Asia Pacific Economic Cooperation Summit, to close at 6,932.81 on Friday, despite the initial panic brought by the terror attacks in Paris.
The broader all-share index also gained 0.6 percent to settle at 4,001.22.
Property and services posted the highest gains of 2.3 percent and 1.1 percent, respectively. They were followed by financials and holding firms, which rose 0.4 percent and 0.2 percent, respectively.
RCBC Securities said the property sector was boosted by statement of Federal Reserve’s vice chairman Stanley Fischer that the Fed’s rate hike approach would be gradual to avoid adverse effects on emerging markets.
Mining and oil declined by 1.6 percent, while the industrial index dropped 0.6 percent.
Foreign investors were net sellers last week by P1.56 billion, as total overseas selling reached P10.8 billion, while overseas buying amounted to P9.2 billion.
Top gainers last week were Starmalls Inc., which jumped 102.8 percent to P7.89; Agrinurture Inc., which climbed 63.1 percent to P3.41; and Mabuhay Vinyl Corp., which advanced 22.4 percent to P3.69.
Heavy losers were Manila Broadcasting Corp, which lost 20 percent to P24; SPC Power Corp., which dropped 12.5 percent to P3.50; and PetroEnergy Resources Corp., which retreated 9.7 percent to P3.60.