The Philippine Stock Exchange index, the 30-company benchmark, is expected to consolidate between 6,700 and 6,800 points this week, as investors continue to look overseas for guidance, amid uncertainty in the global market.
F. Yap Securities Jason Escartin said investors remained concerned over the economic slowdown in China, which could trigger the world economy to slip into recession.
“The ‘R’-word has been making its rounds in financial markets, with various indicators dusted off their shelves to show an increased likelihood for the world economy’s slipping into recession. Meanwhile, G20 finance ministers and central bankers’ in Shanghai summit failed to come up with bold concerted action, as leaders zeroed in on crisis and uncertainty, arguing the latter is the case at the moment,” Escartin said.
Investors are also expected to closely monitor the move of US Federal Reserve, after the US gross domestic product growth was revised upward to 1 percent on strengthening economy.
RCBC Securities said while the local market continued to track movements overseas, market activity was seen to pick up as corporate earnings results poured in.
The bellwether PSEi fell 0.3 percent to close at 6,771.30 on Friday, while the broader all-share index lost 0.3 percent to 3,905.76.
Major sub-indices were mixed as industrial and holding firms closed higher by 1.2 percent and 0.48 percent, respectively.
Registering week-on-week declines were financials, (-3.52 percent), mining and oil (-1.34 percent) and property (-0.69 percent).
Foreign investors were net sellers last week by P1.15 billion, as total foreign selling reached P12.23 billion, while foreign buying amounted to P11.07 billion.
Among the top gainers last week were International Container Terminal Services Inc., which jumped 4.5 percent to P62; and Universal Robina Corp., which advanced 4.1 percent to P195.90.
Heavy losers included Bank of the Philippine Islands which fell 6.9 percent to 84.20. Petron Corp. and Robinsons Retail Holdings Corp. also dropped 5.4 percent and 4 percent, respectively.