Stocks are expected move sideways this week with an upward bias, as investors take cue from international markets and the release of new domestic data.
BPI Asset Management said in a weekly outlook the bellwether Philippine Stock Exchange index was expected to trade between 7,170 and 7,300 points, with the remittance data for the month of February as the main catalyst.
“This would confirm if the effects of weak global demand to the overseas workers would really be material,” BPI Asset Management said.
Another data the market players are keeping an eye on is the US consumer price index, which is also scheduled to be released this week.
Some analysts expect the market to weaken toward the 7,000-point level in the near-term, ahead of the national elections in May.
“Chartwise, the week’s close at 7,247.20 confirms a near-term top at 7,412. [We] continue to see further weakness towards the 7,000 level in the near-term. Expect the market to range between 7,150 and 7,350 in the week ahead,” BDO Unibank Inc. investment strategist Jonathan Ravelas said.
The 30-company PSEi last week closed flat at 7,247.20, on sideways trading. While the index reached a weekly high of 7,302.62 on Monday, the market traded lower through most of the week with a last-minute recovery on Friday.
Gains in financials (up 1.7 percent) offset losses in mining/oil (down 1.9 percent) and services (down 1.91 percent).
Average turnover fell 20 percent to P5.448 billion from the previous week’s average of P7.04 billion.
Foreigners turned net sellers with P325 million. Total overseas selling last week amounted to P15.72 billion while total foreign buying reached P14.1 billion.
Consumer stocks Concepcion Industrial and Puregold Price Club Inc. were the among top gainers last week. Concepcion Industrial gained 8.8 percent to P47, while Puregold jumped 7.3 percent to P39.10.
Bloomberry Resorts Corp. dropped 9.6 percent to P4.59, while Philippine Long Distance Telephone Co. dipped 4.8 percent to P1,828.