COVID-19 spike still weighs on market

Share prices are expected to move sideways this week as investors continue to assess the impact of the COVID-19 situation.

“We believe that the continuous rise of COVID-19 cases in the country driven by Omicron coronavirus variant could dampen economic activity as consumer spending shift to prioritize health related expenses and basic need items,” said Niel Maderaje, research analyst from online brokerage firm Utradeph.com.

First Metro Investments Corp., meanwhile, remains positive about the stock exchange as it expects the index to hit 7,900 points to 8,100 points by the end of 2022.

FMIC vice president and research head Cristina Ulang said the stock market would be boosted by the continued reopening of the economy, election-related spending as well as higher corporate earnings.

FMIC expects corporate earnings in 2022 to increase 35 percent from last year’s 28 percent.

The Philippine Stock Exchange last week advanced 3.6 percent as the positive economic growth outlook outweighed concerns about the rapid spike in COVID-19 cases in the country.

The broader All Shares Index also jumped 2.9 percent to to 3,855.30.

All sub-indices ended in green, led by mining and oil which rose 5.9 percent; financial which climbed 5.1 percent; property which inched advanced 4.8 percent; holding firms which went up 3.2 percent; industrial which rose 2.7 percent; and services which added 1.8 percent.

Foreign investors were net buyers for the week by P58.9 million, while the average daily value traded reached P6.2 billion from the previous week’s average of P5.56 billion.

Weekly top price gainers were Solar Philippines Nueva Ecija Corp., which surged 25.8 percent to P1.51; Metropolitan Bank & Trust Co., which jumped 8 percent to P57.80 ;and Security Bank Corp., which advanced 7.6 percent to P112.

Weekly top price losers were Wilcon Depot Inc., which declined 5 percent to P28.50; San Miguel Corp., which dropped 2.2 percent to P110.30; and Emperador Inc., which fell 2 percent to P19.40.

Wall Street stocks, meanwhile, staged a partial recovery Friday following mixed banking earnings and disappointing retail sales as markets continue to weigh worries over tightening monetary policy. With AFP

The S&P 500 and the Nasdaq ended in positive territory after falling sharply earlier in the session on a day that also saw equity markets in Asia and Europe retreat.

“Market overcomes hurdles in front of three-day weekend as investors buy the intraday dip,” Briefing.com  said in a summary.

The benchmark Dow lost 200 points Friday, while the broad-based S&P 500 finished slightly positive for the day, but down 0.3 percent for the week. 

In economic data, retail sales fell 1.9 percent in the final month of the year, the Commerce Department said, as shoppers pulled back amid the latest COVID-19 wave and as higher prices bit into consumption.

A University of Michigan survey showed consumer sentiment fell sharply in January, due to the Omicron wave and escalating inflation.

Banks, meanwhile, reported mixed results, with JPMorgan Chase diving after it reported record annual earnings, but signaled higher costs, including for increased salaries. With AFP