Market likely to trade downward

Share prices are again expected to trade sideways this week with a downward momentum, after the benchmark index failed to stay above the 8,000-point level in the previous week.

With no upcoming positive leads, analysts expect the index to track lower and test the 7,700 level.

“The week’s close at 7,824.59 highlights downward momentum is accelerating. Look for a test towards 7,700 should a break of 7,800 levels occur in the near-term,” BDO Unibank chief investment strategist Jonathan Ravelas said.

Ravelas said foreign investors have also been cashing in on gains from the previous rally after the market failed to stay above 8,000 points.

Philstocks Financial Inc. said fears of a delay in the US-China trade deal was pushing regional markets deeper into the negative territory.

The Philippine Stock Exchange Index last week decreased 1.4 percent to close at 7,824.59 on heavy foreign selling. The broader All Shares Index dropped 1.5 percent to 4,679.04.

Except for the services index, which inched up 0.1 percent, all other sub-indices ended on the negative territory, led by mining (-6.48 percent), financials (-2.43 percent), property (-2.10 percent), industrial (-1.69 percent) and holding firms (-0.68 percent).

Foreign investors were net sellers by P3.22 billion while the average daily value traded was flat at P5.1 billion.

Weekly top price gainers were LT Group Inc., which rose 5.2 percent to P12.60; Universal Robina Corp., which climbed 1.9 percent to P154; and Bloomberry Resorts Corp., which advanced 1.6 percent to P11.46.

Weekly top price losers were Consunji-led stocks DMCI Holdings Inc. and Semirara Mining and Power Corp., which declined 13.7 percent and 13.2 percent, respectively.

The Department of Energy last week slapped a one-month selective coal trading suspension and fines against Semirara Mining for allegedly violating coal trading rules.

Share price of Petron Corp. dropped 7.7 percent to P4.53.

Meanwhile, Wall Street stocks on Friday cut their losses for the week following solid consumer data that lifted indices after three down sessions.   

But Tesla shares plunged following a bumpy launch of an electric pickup truck.

Investors welcomed a University of Michigan report which showed higher consumer confidence in November, while shares of Nordstrom and Gap after earnings reports.

“The market is focused on the health of the consumer going into the holiday shopping season,” said Adam Sarhan of 50 Park Investments.

“US consumers make up two thirds of the economy so the fact that the consumer spending is so strong, both on Main Street and Wall Street, especially as we head into the holiday season, is significant.” 

The broad-based S&P 500 ended up 0.2 percent, but ended the week down 0.3 percent.

London was the standout equity performer in Europe on Friday, rising well over one percent, while Frankfurt and Paris advanced more modestly as they had to absorb a sobering set of data showing the eurozone’s economy has almost stalled after successive months of manufacturing decline. With AFP