The benchmark Philippine Stock Exchange Index is expected to re-test the 8,000-point level this week as investors await two important economic data—the October inflation rate and the third-quarter gross domestic product figures.
The government is scheduled to release the October inflation rate figure on Nov. 5 and third quarter GDP results on Nov. 7.
The Bangko Sentral ng Pilipinas’ Department of Economic Research earlier projected October inflation rate to settle within the 0.5-percent to 1.3-percent range.
Government economic managers have also reported that the third quarter GDP would grow by at least six percent amid efforts to accelerate spending after a budget impasse in the early part of 2019.
“The week’s close at 7,977.12 continues to highlight the market’s difficulty to stay above the 8,000 levels. Look for another attempt at the 8,000 levels. Failure to try the said levels could cause some profit taking and retest the 7,700 level,” BDO Unibank chief investment strategist Jonathan Ravelas said.
The PSEi last week rose 0.7 percent to 7,977.12, while the broader All Shares Index gained 0.4 percent to 4,787.45.
Except for the service index which dipped 1.2 percent, all other sub-indices ended in the green led by financial, which rose 2.2 percent, holding firms which advanced 1.1 percent, property which climbed 0.1 percent, mining and oil which gained 0.08 percent and industrial which added 0.01 percent.
Foreign investors were net buyers during the week by P1.4 billion. The average daily value traded stood at P6.5 billion from the previous week’s average of P5.2 billion.
The index in the first 10 months of the year climbed 6.8 percent while year-to-date foreign buying stood at P8.34 billion.
Suntrust Home Developers Inc., which will be soon be majority owned by Hong Kong’s SunCity Hong Kong-listed Suncity Group Holdings Limited, was the weekly top price gainer. Share price of Suntrust jumped 36.8 to P1.71 per share before the trading on the shares were suspended on Tuesday.
Top gainers for the week were MacroAsia Corp., which climbed 10.8 percent to P20.60, BDO Unibank Inc., which advanced 4.8 percent to P154.90, and JG Summit Holdings Inc., which gained 4.2 percent to P76.25.
Weekly top price losers were Manila Electric Co., which declined 5 percent to P338.40, Globe Telecom Inc. which fell 4.7 percent to P1,824, and Robinsons Retail Holdings Inc., which lost 3.9 percent to P75.85.
Meanwhile, strong US jobs data and positive signals from the US and China on trade talks lifted most global stock markets Friday, with Wall Street ending at records.
US employers added 128,000 net new jobs last month, the Labor Department reported, much better than the 80,000 projected by analysts and in spite of the hit from the lengthy General Motors strike.
“The key takeaway from the report is that it is not emblematic of an economy that is on the brink of a recession,” analyst Patrick O’Hare wrote at Briefing.com.
“On the contrary, it is emblematic of an economy that is expanding.”
Major US stock indices gained around one percent, with the S&P 500 and Nasdaq finishing at records and the Dow within touching distance of a new all-time high.
Bourses in Europe also rose, while stock markets in Asia were mixed. With AFP
