Stocks are expected to move sideways this week, as investors will likely watch developments overseas and monitor the earnings reports of domestic companies.
“While we expect the market to react to external news, investors will also be looking closely at the earnings releases by local corporates,” BPI Asset Management said in a weekly outlook.
Early earnings results were mixed so far, with Jollibee Foods Corp. reporting a 10-percent decline in net income in 2015 due to one-time extraordinary cost.
Globe Telecom Inc. declared a net profit of P16.48 billion in 2015, up 23 percent year-on-year, while Security Bank Corp. said net income rose 7 percent last year to a record P7.7 billion.
Aside from earnings reports, investors will also await the release of local economic data including remittances in December 2015.
Analysts earlier warned the continued decline in world oil prices could have a severe impact on remittances from workers abroad.
The Philippine Stock Exchange index, the 30-company bellwether, fell 1.6 percent to close at 6,654.45 on Feb. 12, while the broader all-share index declined 0.7 percent to 3,839.97.
Analysts said while the market was up in the early part of last week’s trading on renewed investors appetite for equities, the benchmark index retreated on continued decline in oil prices and weak manufacturing data from China.
Except for the mining and oil index which surged 8.6 percent, all other major indices ended in the red led by property (-2.1 percent), holding firms (-1.5 percent), services (-1.3 percent), industrial (-1.1 percent) and financials (-0.9 percent).
Overseas investors were net sellers last week by P1.62 billion, as total foreign selling reached P10.44 billion, while foreign buying amounted to only P8.81 billion.
Mining stocks emerged the top gainers, led by Lepanto A and B shares which climbed 81.3 percent and 75.8 percent, respectively, while Benguet A shares jumped 35 percent to P5.40.
