Flat trading is expected to persist this week, with the Philippine Stock Exchange index seen hovering between 7,000 and 7,400 levels amid the lack of catalysts here and abroad.
Analysts said with the earnings season almost over, investors were looking for new developments that could break the market’s current sideways trend.
“Chartwise, the week’s close at 7,311.72 continues to highlight the market to remain range-bound between the 7,000 and 7,400 levels in the near-term. A break below the 7,150 levels suggest further weakness towards the 7,000 levels. Only a break above the 7,400 levels could call the bulls back into play,” BDO Unibank Inc. chief investment strategist Jonathan Ravelas said.
Ravelas said the decision of major credit rating firms Fitch Ratings and S&P to affirm the Philippines’ credit score could provide confidence to investors moving forward.
Fitch reaffirmed the country’s credit rating while S&P also raised the economic growth forecast to 6.6 percent from 6.4 percent for 2017 and to 6.4 percent from 6.2 percent for 2018.
The PSEi ended nearly flat at 7,311.72 on March 31.
Except for the property and mining and oil, all other indices advanced, led by services which jumped 3.3 percent, industrial which climbed 0.7 percent and holding firms which advanced 0.6 percent.
The bellwether was also up 6.9 percent in the first quarter.
Foreign investors were net sellers last week by P6.6 billion, bring total net selling to P18.4 billion in the first quarter.
Top gainers last week were 2Go Group Inc. which climbed 8.6 percent to P9.50, Bloomberry Resorts Corp. which advanced 8.1 percent to P7.95 and Jollibee Foods Corp. which increased 5 percent to P197.50.
Logistics company 2Go reported last week that conglomerate SM Investments Corp. acquired a 34-percent stake in the company, while Jollibee said it would continue to be country’s biggest fast-food chain despite rising cost of raw materials and the government’s new regulations on contractualization.
Heavy losers included First Gen Corp. which went down 6.2 percent to P20.95, Cemex Holdings Philippines Inc. which declined 6 percent to P7.03 and Ayala Land Inc. which retreated 4.2 percent to P33.05.
