Share prices are expected continue their sideways movement during this shortened trading week as investors await the results of the resumption of talks between the US and China, which could finally put an end to their trade war.
BDO Unibank Inc chief investment strategist Jonathan Ravelas said investors would remain on the sidelines pending more developments in the US-China trade talks and the results of the 2018 corporate earnings.
“The week’s close at 7,962.13 highlights strong support exists at the 7,800/7,850 levels. Look for another attempt to try and stay above the 8,000 levels,” Ravelas said.
Philstocks Financial Inc. said investors would also look for additional cues on corporate earnings to justify additional investments in the equities market.
Among the companies that are scheduled to release earnings results this week are BDO Unibank Inc., Manila Water Co Inc., Manila Electric Co. and SM Investments Corp.
The 30-company Philippine Stock Exchange Inc. last week rose 0.7 percent to close at 7,962.13, while the broader All Shares Index climbed 1.25 percent to 4,883.33.
Except for the financials which declined 1.8 percent, all other major indices ended in the green, led by the industrial index which gained 1.93 percent, holding firms which advanced by 1.5 percent and mining and oil which increased 1.4 percent.
The services and property indices also rose 0.6 percent and 0.2 percent, respectively.
Foreign investors were net buyers for the week by P887.8 million, while the average daily value traded stood at P8.39 billion.
Weekly top price gainers were Ayala Land Inc. unit Prime Orion Philippines Inc. which advanced 14.1 percent to P3, San Miguel Food and Beverage Inc. which climbed 13.1 percent to P104 and JG Summit Holdings Inc., which rose 10.04 percent to P68.50.
Weekly top losers were Concepcion Industrial Corp., which declined 9.3 percent to P39.45, Roxas Holdings Inc. which dropped 7.9 percent to P2.78 and Vista Land & Lifescapes Inc. which fell 6.2 percent to P7.50.
Boosterish claims of progress in US-China trade talks, meanwhile, lifted global stocks on Friday, sending Wall Street to its longest winning streak in more than two decades.
Asian and European markets likewise were mostly higher, amid signals from Chinese and American officials building expectations the two sides will successfully resolve their seven-month trade war, which has knocked equities prices sideways for much of the last year.
In Washington, US President Donald Trump said the latest round of trade talks had been extended by another two days as the two sides raced to strike a bargain ahead of a March 1 deadline to avoid sharp increases in US duties on Chinese goods—and he again said he might be willing to push back the deadline.
“I think there is a very, very good chance that a deal can be made,” Trump told reporters at the White House.
In New York, the blue-chip Dow Jones Industrial Average closed higher, marking its ninth straight weekly gain—the longest such streak since May 1995. With AFP
