Share prices are expected to move sideways this week, as the market continues to build momentum before making an attempt to hit the 8,500-point level, analysts said over the weekend.
Analysts said the market was expected to trade between 8,400 and 8,500 points this week ahead of the release of third-quarter financial performance by the first batch of companies.
“Movements within 8,400 to 8,500 should help fortify a new base for the bourse, as fund managers express keen interest on the momentum build-up of government’s infra projects,” 2TradeAsia.com said.
“Investors should start expanding valuation timeline towards 2020, with price/earnings ratio multipliers cheapening from to 16x,” it said.
Aside from domestic developments, investors were expected to watch the release of third-quarter gross domestic product data by the US this week.
BDO Unibank chief investment strategist Jonathan Ravelas said the index could hit another assault towards the 8,500/8,600 level in the near-term, especially if third-quarter earnings exceeded expectations.
The PSEi, the 30-company benchmark index of the Philippine Stock Exchange, lost 0.3 percent to close at 8,420.95 points on Oct. 20, while the broader all-share index retreated 0.5 percent to 4,913.79, as the market succumbed to profit taking.
Except for the financials and holding firms which went up 0.2 percent and 0.6 percent respectively, all other sub-indices ended in the red, led by mining and oil which declined 5.4 percent and industrial which dropped 2.2 percent.
Foreign investors were net sellers by P2.5 billion last week. Average daily turnover improved to P9.7 billion from the previous week’s P8.5 billion.
Top gainers last week were Macroasia Corp. which jumped 10.8 percent to P19.04, Cirtek Holdings Philippines Corp. which climbed 6 percent to P44.85 and PLDT Inc. which advanced 4.1 percent to P1,708.
Heavy losers included Universal Robina Corp. which slid 8.05 percent to P137, Alliance Global Group Inc. which fell 7.2 percent to P15.46 and Semirara Mining and Power Corp. which dropped 7.1 percent to P41.10.