Stocks are expected to become range bound this week, after the benchmark index closed above the 7,300-point level last week, as investors wait for stronger catalysts.
“Chartwise, the week’s close at 7,345.02 still suggests the market to remain range bound between the 7,000 and 7,400 levels in the near term. A break above the 7,500 levels could call the bulls back into play,” BDO Unibank chief investment strategist Jonathan Ravelas said.
The US Federal Reserve’s pronouncement that the pace of interest rate hike would be gradual could still boost investors’ sentiment.
Analysts said following the Fed’s policy decision to raise interest rates, investors would also focus on the next move of Bangko Sentral ng Pilipinas on the appropriate monetary policy on March 23.
Analysts said while Bangko Sentral was unlikely to change policy settings even as the US Fed raised interest rates to sustain economic growth, investors would look for hints on how long the former could delay a rate hike.
The PSEi, the 30-company benchmark index of the Philippine Stock Exchange, rose 2.8 percent over last week’s five-day market trading to close at 7345,02 on March 17, following the US Fed’s rate hike and expectations that it would not accelerate future tightening.
The boarder all-share index ended higher by 1.7 percent to settle at 4,417.20.
Except for the mining and oil index which declined 2.8 percent last week, all other major sub-indices ended in the green, led by holding firms which jumped 3.6 percent, financials which advanced 3.2 percent and services which went up 1.8 percent.
Foreign investors were net sellers by P1 billion last week, as foreign selling reached P26.4 billion and foreign buying amounted to P25.4 billion.
Average daily turnover improved to P8.3 billion last week from the previous week’s P7.4 billion.
Top gainers were International Container Terminal Services Inc. which climbed 14.5 percent to P187, SM Investments Corp. which went up 10.5 percent to P662 and JG Summit Holdings Inc. which increased 9.5 percent to P81.05.
Heavy losers included Cemex Holdings Philippines Inc. which fell 12.8 percent to P7.50, GT Capital Holdings Inc. which declined 6.3 percent to P1,152 and DMCI Holdings Inc. which retreated 4.8 percent to P11.86.
