Stocks are expected to move sideways in this shortened trading week, as investors search for catalysts that can push the market above the 8,000-point level.
Analysts said the market showed resilience as the country’s strong fundamentals offset the unpredictable developments overseas. However, investors are looking for more positive developments that would justify further investment in the equities market.
“Having touched an intra-week high of 8,046, however, we may see gauges stabilizing for now, as investors heed for sequel catalysts that can propel the market to higher ground. This ‘sideways pause’ would be a good launching pad for higher long-term returns, reflecting the administration’s thrust towards inclusive economic growth,” F. Yap Securities said.
BDO Unibank Inc. chief investment strategist Jonathan Ravelas said the market was expected to continue to trade between 7,700 and 8,000 levels.
“Look for a break above the 8,000 levels to trigger tests towards the 8,150 to 8,200 levels,” Ravelas said.
Immediate support and resistance is seen at 7,650 and 8,000 levels, respectively.
The 30-company Philippine Stock Exchange index last week rose 1 percent to close at 7,990.24 on June 9, while the all-share index gained 0.7 percent to 4,749.13, supported by strong foreign buying.
All sub-indices ended in the greed led by property which rose 2.2 percent, followed by services and mining and oil which went up 2.15 percent and 1.06 percent, respectively.
Foreign investors were net buyers by P3.65 billion last week when average daily turnover reached P8.8 billion.
Top gainers last week were SSI Group which jumped 18 percent to P3.16, Wilcon Depot Inc. which advanced 8.5 percent to P6.59 and Bloomberry Resorts Corp. which climbed 7.2 percent to P9.97.
Heavy losers included Rizal Commercial Banking Corp. which declined 6 percent to P61.15, Petron Corp. which went down 5.4 percent to P10.10 and developer 8990 Holdings Inc. which dropped 5.1 percent to P5.93.
