Share prices are expected to continue their sideways movement with a bias on the downside, as investors look for catalysts that could push the market higher.
“We are still firm to our sideway to down outlook. More caution has to be exercised this week, especially that technical readings are putting even more pressure on prices,” Regina Capital Development Corp. managing director Luis Limlingan said.
F. Yap Securities investment analyst Jason Escartin said overseas developments plus the unsteady international crude futures market could make the trading volatile this week.
“Stick to sectors with solid potentials for 2Q. Immediate support is 7,750-7,800, resistance 7,850-7,900,” Escartin said.
The Philippine Stock Exchange Index last week dropped 0.66 percent to close at 7,809.54, while the All Shares Index dipped 0.46 percent to 4,545.05.
“The local equities market consolidated on a tight range as a concoction of positive and negative developments affect market sentiment,” BPI Asset Management in a weekly stock market review said.
The PSEi fell early on in the trading week as concerns the US may hike interest rates. Stock recovered in the latter part of the week on bargain hunting and renewed optimism on the 2015 earnings growth.
Except for the holdings firms index which climbed 0.80 percent, all major sub-indices were in red, led by mining and oil index, which declined 4.05 percent, followed by the services index, which dropped 2.42 percent.
Overseas investors were net buyers for the week by P555.2 million as total foreign buying amounted to P22.20 billion against total foreign selling of P21.65 billion.
Average daily value traded was flat at P8.8 billion.
Weekly top price gainers were AG Finance Inc., which climbed 52 percent to P6.72, 2Go Group Inc., which rose 18.5 percent to P9.90, and Jolliville Holdings Corp., which advanced 16.8 percent to P4.71.
The weekly top price losers were Philex Petroleum Corp., which declined 23 percent to P3 apiece, Lorenzo Shipping Corp., which dropped 11.2 percent to P1.50, and Central Azucarera de Tarlac Inc., which fell 9.2 percent to P87.