Share prices are expected to move on the downward trend this week, with developments over the weekend, including the US-led strikes against Syria, likely to rattle investors.
US President Donald Trump announced the US launched “precision” military strikes against Syria, targeting alleged chemical weapons sites.
Analysts said the rising geopolitical tensions could weigh on the equities market this week, with investors likely to stay on the sidelines or shift to traditional safe-haven assets.
Luis Limlingan, managing director for Regina Capital Development Corp., said developments overseas already resulted in thinner volumes last week.
Meanwhile, online brokerage firm 2TradeAsia.com said the market’s retracement by 12 percent since it reaching a high of 9,058 points on January 29, could provide opportunities for investors.
“Bulk of this weakness was largely driven by ‘political rhetoric.’ Set aside against this backdrop, investors are awash with cash and are poised to re-invest in securities that can deliver healthy returns,” 2TradeAsia.com said,
The PSEi last week declined 0.6 percent to 7,899.98, while the broader All Shares Index lost 0.7 percent to 4,794.65.
Except for the financials and industrial, which posted week on week gains, all other sub-indices fell, led by services (-1.5 percent), mining and oil (-1.2 percent), property (-1.1 percent) and holding firms (-0.1 percent).
Foreign investors were net sellers by P1.77 billion, while the average daily value traded stood at P6.5 billion.
Weekly top price gainers include Jollibee Foods Corp., which jumped 5.1 percent to P292.20 per share; Ayala Corp., which gained 4 percent to P956; and Alliance Global Group Inc., which advanced 3.8 percent to P14.18.
Weekly top price losers include Leisure & Resorts World Corp., which dropped 15.1 percent to P5.05; 2GO Group Inc., which lost 6.7 percent to P17.56; and Robinsons Retail Holdings Inc., which declined 5.5 percent to P84.90.
European stocks, meanwhile, ran into profit-taking Friday as many investors, wary of global uncertainty and US President Donald Trump’s volatile Twitter diplomacy, cashed out before the weekend, traders said.
Bourses in Paris and Frankfurt had posted solid gains earlier in the session after Trump put off a decision about military strikes in Syria, giving investor nerves a welcome break.
US stocks opened in positive territory, but quickly were under pressure after a batch of earnings reports from large US banks sparked a selloff in financial shares.
Although earnings from JPMorgan Chase and other large banks bested analyst expectations, the sector had risen in anticipation of the reports and the results—while good—were not strong enough to propel the stocks higher, analysts said.
“You had a sector selloff in financials,” said Art Hogan, chief market strategist at Wunderlich Securities. “When the group started selling off, it took the whole market with it.” With AFP