Stocks are expected to move sideways, with the benchmark index staying at the 8,000-point level, on thin volume during the shortened three-day trading week and in the absence of market-moving developments.
The financial markets are closed on Aug. 28 (Monday) to celebrate National Heroes Day and on Sept. 1 (Friday) to mark Eid’l Adha.
Analysts said investors were searching for catalysts and fresh leads that could push the market beyond the 8,000-point mark.
The market’s current sideways movement is expected to persist during the ‘ghost month’ period in Chinese trading, which also coincides with the vacation of most fund managers in the region, analysts said.
An analyst said the market was waiting for the passage of the proposed comprehensive tax reform program in Congress, which would help fund the big-ticket infrastructure projects of the Duterte administration.
The Philippine Stock Exchange index, the 30-company benchmark, barely moved over last week’s four-day market trading to close at 8,015.14 on Aug. 25. The broader all-share index inched up by 0.3 percent to settle at 4,749.06.
Major sectors ended mixed, with financial and property registering week-on-week declines and mining and oil, industrial, services and holding firms ending higher.
Foreign investors were net sellers by P248 million last week, as average daily turnover declined to P5.6 billion from the previous week’s average of P6.8 billion.
Top gainers last week were Nickel Asia Corp. which jumped 20.1 percent to P7.30 on higher metal prices, Bloomberry Resorts Corp. which advanced 11.3 percent to P10.94 and Cebu Air Inc. which rose 5.8 percent to P108.50.
Heavy losers included 2Go Group Inc. which fell 7.2 percent to P19.30, Xurpas Inc. which dropped 4.6 percent to P5.74 and Rizal Commercial Banking Corp. which declined 3.3 percent to P51.25.