Stocks are expected to move higher this week, which may send the benchmark index to a new record level, on sustained inflow of foreign funds and expectations of positive second-quarter earnings.
Analysts said investors would closely watch the upcoming policy meetings of US Federal Reserve and Bank of Japan. Expectations are high they monetary policies will be kept unchanged given the impact of ‘Brexit’ on the global and financial markets.
Investors are also looking forward to President Rodrigo Duterte’s first State-of-the-Nation Address to get details on his 10-point economic agenda, especially in expediting infrastructure spending.
“If part of his speech will move on this note, holdings, infra-related plays might lead the limelight. Meanwhile, angles relating to lowering of income and corporate taxes might provide the boost for consumer-spending and investment-related companies,” online brokerage company 2TradeAsia.com said.
A&A Securities trader Justino Calaycay said this week’s trading would also mark the final week of trades in July, setting the backdrop for possible mild window-dressing in line with the onset of the second-quarter earnings season.
Calaycay said with the onset of the so-called ghost month in August, the index could face the challenge of sustaining a level above 8,000 points.
The Philippine Stock Exchange index, the 30-company benchmark, ended flat at 8,025.35, while the broader all-share index gained 1 percent to 4,794.03, as investors took some profits after the index recorded its highest level for the year.
Sub-indices ended mix with with the financial, industrial and holding companies posting weekly gains, while property, services and mining and oil ending in the red.
Foreign investors were net buyers of P3.69 billion last week, as total foreign buying hit P28.1 billion while foreign selling amounted to P22.48 billion.
Top gainers were Concepcion Industrial Corp. which climbed 16.3 percent to P58, Century Pacific Food Inc. which rose 9.62 percent to P17.54 and Cemex Holdings Philippines Inc. which jumped 7.5 percent to P11.94.
Heavy losers were Bloomberry Resorts Corp. which went down by 15 percent to P5.70, Nickel Asia Corp., which dropped 6.4 percent to P5.70 and PLDT Inc. which dipped 4.3 percent to P2,068.