Share prices are expected to trade sideways with an upward bias this week, driven by expectations of a potential monetary policy easing later this month.
“With the market at attractive levels, we may see some bargain hunting in the coming week’s trading,” said Japhet Tantiangco, research head at Philstocks Financial Inc. “Hopes of further easing by the Bangko Sentral ng Pilipinas may give the market support.”
However, Tantiangco cautioned against expecting a strong rally unless new positive catalysts emerge.
“Investors are still expected to maintain a cautious stance while waiting for new catalysts,” he added.
The market’s trading range is projected to be between 6,150 and 6,400.
Last week, the Philippine Stock Exchange index (PSEi) fell 0.37 percent to close at 6,315.93, while the broader all shares index dropped 0.43 percent to 3,751.23.
The PSEi’s sideways movement was influenced by tempered hopes of a rate cut and mixed earnings reports from listed companies.
Average value turnover surged to P10.03 billion from P6.23 billion the previous week. Foreign buying also accelerated to P1.22 billion, up from P155.2 million the week prior.
Asian stock markets wavered on Friday as investors digested mixed American economic data and monitored a landmark US-Russia summit aimed at ending the war in Ukraine.
In choreographed drama, US President Donald Trump and Russia’s Vladimir Putin each arrived in their presidential jets and greeted one another on the tarmac of a US air base, before walking a red carpet together to an honor guard salute.
Trump, setting off for the Alaska meeting with Putin, had described his Russian counterpart as a “smart guy” and hailed a “good respect level” on both sides.
The possibility of an end to a conflict that Putin began in 2022 had put the markets in optimistic mood, analysts said, although oil prices had been volatile owing to Russia’s status as a major producer and uncertainty over the summit’s outcome.
After rallying about two percent on Thursday, oil prices gave back most of those gains Friday.
Wall Street stocks finished mostly lower following a mixed round of economic data.
London and Frankfurt ended lower while Paris rallied to finish in positive territory.
Tokyo’s main stocks index extended a record-run higher following Japanese economic growth data that beat expectations.
US retail sales climbed 0.5 percent in July to $726.3 billion from June, in line with analyst expectations and a solid performance after numerous tariff announcements by Trump.
But the Federal Reserve’s index for industrial production edged down in July, while the University of Michigan’s consumer sentiment survey fell for the first time in four months.
Steve Sosnick of Interactive Brokers said Friday’s reports amounted to a “difficult combination” of data that the market took in stride.
“When the news is good, (stocks) react really positively,” he said. “And when the news isn’t good, they just go down a little.”
Trump continued his tariff campaign on Friday, saying he would soon announce massive import duties on semiconductors.
Shares in chip giants Nvidia and AMD were down following the news.
Markets were also waiting for the Trump-Putin meeting, with Russia’s foreign minister saying his country would not make guesses on the outcome.
Putin, landing in Alaska, stepped onto Western soil for the first time since he ordered the invasion of Ukraine in February 2022, a war that has killed tens of thousands of people.
Every word and gesture will be closely watched by European leaders and by Ukrainian President Volodymyr Zelensky, who was not invited and has publicly refused pressure from Trump to surrender territory seized by Russia. With AFP
