Analysts expect share prices to move sideways this week with a downward bias, as investors remain on a wait-and-see mode in the absence of strong drivers that could lure investors back to the market.
Investors are also waiting the market to correct on concerns prices are now overvalued. “We expect the index to continue moving sideways this week with a narrower trading range of 7,900 to 8,000,” Regina Capital Development Corp. managing director Luis Limlingan said.
“Last week’s bearish trend bias is also expected to start shifting slowly on the neutral side, making a range trade strategy more appropriate this week. However a cautious trading approach is still advised as some directional indicators remain bearish, albeit rather weak in terms of price momentum,” he said.
Online brokerage firm 2TradeAsia.com said the current wait-and-see mode would likely persist until the end of the so-called ‘ghost month,’ referring to August.
“Overall, portfolio selection in equities will still shine, in light of negative yields provided in fixed-income alternatives. Monitor momentum progression and trade the range,” 2TradeAsia.com said.
The Philippine Stock Exchange index last week closed lower by 0.3 percent to 7,930.75 on Aug. 19, even as the government reported that gross domestic product grew 7 percent year-on-year in the second quarter, beating market estimates.
Except for mining and oil and holding firms, which posted week-on-week gains of 6.2 percent and 0.8 percent respectively, all other sub-indices ended in the red.
Foreign investors were net sellers last week of P3.32 billion as total overseas selling hit P26.5 billion while overseas buying amounted to P23.18 billion.
Top gainers last week were Semirara Mining and Power Corp. which climbed 11.1 percent to P112, LT Group Inc. which gained 8.5 percent to P17.38 and Vista Land & Lifescapes Inc. which advanced 7.6 percent to P6.36.
Heavy losers were gaming stocks PhilWeb Corp. which fell 35.68 percent to P5.66 and Leisure & Resorts World Corp. which dropped 23.3 percent to P4.60, after state-run Philippine Amusement and Gaming Corp. reiterated the Duterte administration’s stance against online and on-site gaming activities.
