Stocks are expected to move sideways this week in the absence of significant local catalysts and as investors look overseas for guidance.
“We expect the PSEi [Philippine Stock Exchange index] to move together with the international markets due to the lack of significant local catalysts,” BPI Asset Management said in its weekly market outlook.
Analysts said the rising expectations for a US Federal Reserve interest rate hike in December, the upcoming US elections and the rising world crude prices were among the factors that could affect the market’s movement over the short term.
Investors are also expected to start taking positions ahead of the release of third-quarter earnings of listed companies.
Among the companies scheduled to release quarterly earnings this week are Manila Electric Co., Aboitiz Group and Philex Mining Corp.
Analysts expect the PSEi, the 30-company bellwether, to trade between 7,570 and 7,720 points this week.
Investors are also looking forward to the Duterte administration’s 10-point economic agenda, following the $24-billion investment deals signed with China last week.
The PSEi jumped 3.5 percent over last week’s five-day market trading to close at 7,650.22 on Friday, ending three consecutive weeks of decline.
The broader all-share index gained 2.6 percent to end the week at 4,518.11.
All major sub-indices ended in the green, led by holding firms which advanced 4.5 percent, property which climbed 4 percent and services which went up by 3.6 percent.
Foreign investors were net buyers last week of P1.16 billion, as total foreign buying reached P23.55 billion while foreign selling amounted to P22.38 billion.
Average daily turnover also went up to P8.2 billion from previous week’s average of P7.3 billion.
Top gainers last week were JG Summit Holdings Inc. which climbed 10.8 percent to P78.90, Megawide Construction Corp. which rose 10.1 percent to P15.94 and GT Capital Holdings Inc. which gained 6.3 percent to P1,420.
Heavy losers were Liberty Telecoms Holdings Inc. which dropped 4.5 percent to P2.09, Nickel Asia Corp. which dipped 2 percent to P2.90 and PXP Energy Corp. which declined 1.7 percent to P3.88.
