Stocks are expected to sustain an upward movement this week, on improving market sentiment and strong 2015 corporate earnings reported by major companies.
BPI Asset Management said in its weekly outlook investors would closely watch the release of US data on inflation rate, housing and consumer confidence.
“We expect markets to trade sideways with a slightly upward bias as the somewhat positive sentiment carries over into next week, though caution on global growth prospects may limit gains,” BPI Asset said.
Analysts said as more companies released their 2015 earnings this week, positive reports could sustain the market’s incipient rally.
Among the companies scheduled to release earnings results this week are SM Prime Holdings Inc., Manila Water Co. Inc. and Philex Mining Corp.
The Philippine Stock Exchange index rallied 138 points, or 2.1 percent, to close at 6,792.06 on Feb. 19, on improved investor sentiment arising from rising oil prices and a strong recovery on Wall Street.
PSEi’s rally was spurred by services (up 3.1 percent); industrials (3.1 percent), financials (2 percent) and property (1.9 percent).
F. Yap Securities investment analyst Jason Escartin said the market’s favorable performance in the past trading weeks managed to lift optimism, at least for the short-term.
Foreign investors were net sellers last week by P1.16 billion, as total overseas selling hit P18.64 billion while overseas buying amounted to P17.48 billion.
Among the advancers last week were Petron Corp., which jumped 20.4 percent to P9.20; First Gen Corp., which climbed 19.3 percent to P21.10; and EEi Corp., which rose 19.3 percent to P6.75.
San Miguel Corp. president and chief operating officer Ramon Ang said last week he expected Petron to post P18 billion in net income in 2016.
Heavy losers last week were Universal Robina Corp, which declined 2 percent and Melco Crown (Philippines) Resorts Corp., which declined 7.6 percent.