Trading at the Philippine Stock Exchange is expected to move in a narrow range during the shortened trading week on concerns over the possible increase in COVID-19 cases in the country this holiday season.
Online brokerage firm 2TradeAsia.com said with experts projecting a “Christmas wave” in terms of COVID-19 cases in the country, investors were worried about the possible impact of this scenario in the economy.
“While economic managers seem to be not predisposed to imposing lockdown rules as demanding as that of second quarter of 2020, needless to say business and consumer confidence will suffer the consequence, which in turn cascade to listed firms’ valuation,” the online brokerage firm said.
Meanwhile, the optimism arising from positive vaccine developments and further reopening of the economy could also provide a boost on the market during the last trading days of 2020.
The Philippine Stock Exchange Index last week moved sideways after closing marginally higher by 0.4 percent to 7,272.80. The broader All Shares Index climbed 0.7 percent to 4,349.35.
Except for the property index which dropped 0.9 percent, all other sub-indices ended higher led by mining and oil which rose 2.6 percent; industrial which gained 1.4 percent and services added by 0.1 percent.
Foreign investors were net sellers for the week by P3.77 billion while the average daily value traded stood at P9.9 billion.
Weekly top price gainers were Integrated Microelectronics Inc., which jumped18.7 percent to P8.45; AyalaLand Logistics Holdings Inc., which advanced 17.9 percent to P3.68; and Cebu Air Inc., which climbed 14.6 percent to P57.30.
Weekly top price losers were Wilcon Depot Inc., which dropped 4.2 percent to P16.96; Puregold Price Club Inc., which fell 3.9 percent to P40.35; and SM Prime Holdings Inc., which declined 3.3 percent to P37.90.
Global stock markets, meanwhile, retreated Friday along with the pound, as investors focused on long-running US stimulus talks on Capitol Hill and whether Britain and the European Union can finally agree to a post-Brexit trade deal.
Major US indices pulled back from Thursday’s records as markets awaited resolution of congressional talks on another relief package for the coronavirus-ravaged US economy.
Lawmakers have said negotiations are in the home stretch, but there was still no deal Friday evening ahead of a midnight deadline to avert a government shutdown.
“While there’s a lot of optimism about stimulus, it’s important not to count on it,” said TD Ameritrade’s JJ Kinahan in a note Friday morning.
“It’s easy to see things going south and the market taking it pretty hard, with so much stimulus premium already built in. Hope for the best, but prepare for the worst, as the saying goes.”
Republicans and Democrats braced for possibly working through the weekend to conclude a $900-billion deal aimed at providing emergency relief for millions of struggling families and businesses amid signs of a worsening economy and as the country sees record high death tolls from the coronavirus pandemic.
Still, many analysts remain hopeful. With AFP
