Stocks are expected to follow the downtrend in other markets ahead of the holidays, analysts said over the weekend.
Markets will be closed Thursday and Friday for the observance of Holy Week.
Analysts said overseas developments, including concerns over a looming trade war between the United States and China which could affect global trading and rising inflation and interest rates would continue to weigh on the Philippine equities market this week.
“The Philippines, an open trade economy, looks vulnerable amidst all these, although the impact is not as huge as others while are net exports,” Regina Capital Development Corp. managing director Luis Limlingan said.
Philippine Stock Exchange president Ramon Monzon said he was confident about the local stock market despite the current downtrend.
“It is not isolated to the Philippines. We are just following the US and regional markets. But it is also good to have these corrections because our market has gone up fast and it is good to consolidate,” Monzon said.
Analysts expect trading to range between 7,500 points and 7,800 points this week.
The Philippine Stock Exchange index, the 30-company benchmark, fell below the 8,000-point support level, declining 3.2 percent last week to close at 7,970.80 on Mar. 23 amid heavy foreign selling.
“Investors got nervous again after [US] President [Donald] Trump signed an executive memo imposing tariffs on a wider range of Chinese imports sending all major Asian markets tumbling,” RCBC Securities said.
All major sub-indices ended in the red led by financials (-4.1 percent), mining and oil (-3.5 percent), holding firms (-3.4 percent) and industrials (-3.2 percent. Services and property also dropped 2.8 percent and 2.3 percent, respectively.
Foreign investors were net sellers by P6.4 billion last week, as average daily turnover reached P10.7 billion.
Top gainers last week were gaming company Travellers International Hotel Group Inc. which jumped 16.1 percent to P3.97, Leisure & Resorts World Corp. which climbed 9.4 percent to P6.89 and Chelsea Logistics Holdings Corp. which rose 5.2 percent to P7.84.
Heavy losers included GT Capital Holdings Inc. which declined 9.8 percent to P1,170, Alliance Global Group Inc. which went down 9.7 percent to P12.98 and Integrated Microelectronics Inc. which fell 8.7 percent to P16.