Share prices are expected to continue to consolidate between 7,700 points and 7,800 points as the US-China trade war, and the disappointing corporate earnings and second-quarter economic growth make a dent on overall market sentiments.
Analysts said investors would continue to digest the weaker-than-expected second quarter economic growth as well as the second-quarter financial reports of listed firms.
“Movement could remain sideways in the near-term as the PSEi trades with a lack of clear immediate catalysts. Resistance is at the psychological round number of 8,000, while support is at the most recent low around 7,720,” said Papa Securities trader Gabriel Jose Perez.
With the second-quarter earnings season reaching the tail end this week, investors are expected to look for overseas for guidance.
Among the companies scheduled to report their second-quarter results this week are Ayala Corp., LT Group Inc., GT Capital Holdings Inc., DMCI Holdings Inc. and Puregold Price Club Inc.
The Philippine Stock Exchange Index tumbled for the third straight week, losing 3.4 percent week-on-week to close at 7,854.39, while the broader All Shares Index declined 2.9 percent to 4,784.11.
Except for the mining and oil sector which rose 0.6 percent, all other sub-indices ended in the red led by industrial (-5.33 percent), property (-5.18 percent), holding firms (-3.43 percent), services (-1.33 percent) and financials (-0.53 percent).
Foreign investors were net sellers for the week by P3.9 billion, while the average daily value traded stood at P7 billion from P6.3 billion in the previous week.
Weekly too price gainers were Security Bank Corp., which rose 7.5 percent to P193.50; PLDT Inc., which advanced 2.9 percent to P1,184; and Bank of the Philippine Islands gained two percent to P94.25.
Weekly top price losers were Jollibee Foods Corp., which sank 12.8 percent to P225; JG Summit Holdings Inc., which dropped 9.3 percent to P63.05; and Megaworld Corp., which fell 8.6 percent to P5.70.
Meanwhile, global stocks fell Friday on worries about the grinding US-China trade war amid rising gloom over the global growth outlook.
Leading bourses in Europe lost more than one percent, including in Milan after Italian Interior Minister Matteo Salvini pulled support for the government coalition and called for snap elections while parliament was on summer recess.
Wall Street stocks dove after US President Donald Trump said he might cancel trade talks with China scheduled for September and that the US would not do business with Chinese tech company Huawei.
US equities later staged a partial rebound due to bargain-hunting, but finished the day and week lower.
“The trade back and forth between the US and China is huge on the market,” said FTN Financial’s Chris Low, who also cited heightened recession risk as a drag on stocks.
In other markets, the British pound fell to fresh lows after Britain reported its first economic contraction in nearly seven years, while oil prices rallied on talk Saudi Arabia will move to boost oil prices. With AFP
