Stocks are expected to move sideways with an upward bias this week, as investors continue to take cue from the international markets and domestic data releases.
Analysts said investors would closely monitor the forthcoming April 17 meeting among oil producers to discuss a possible freeze in current production levels to boost oil prices.
A cut in the production is expected to have a positive effect on the equities market. However, analysts said that if oil producers failed to reach an agreement, this might cause as selldown in the market.
With the earnings report now over, investors are likely to look overseas for market guidance.
Regina Capital Development Corp. managing director Luis Limlingan said he expected strong selling pressure this week, as share prices reached key resistance levels.
Limlingan, however, said sustained rallies could push the index above the 7,360 to 7,400 range.
“A range trade strategy is still in place but we advise traders to be more watchful for any pullback,” he said.
The Philippine Stock Exchange index rose 1 percent last week to close at 7,321.30 on April 15, while the broader all-share index gained 1.3 percent to 4,314.67.
The market was up for most part of the week on positive developments overseas, such as better-than-expected economic data from China and positive corporate earnings.
Except the industrial sector, which dipped 0.1 percent, all other major sub-indices ended in the green, led by services which climbed 3 percent, holding firms which climbed 1.4 percent and property which advanced 1 percent.
Foreign investors, however, were net sellers last week by P1.26 billion, as total foreign selling reached P19 billion while foreign buying amounted to only P17.7 billion.
Top gainers last week were retailer SSI Group Inc. which advanced 6 percent to P3.69, despite reporting an 18.8-percent decrease in 2015 net income and Ayala Corp., which jumped 4.9 percent to P782 as the conglomerate said net income was expected to reach P50 billion by 2020.
Heavy losers last week included EEI Corp., which declined 5.7 percent to P7.50 and Universal Robina Corp., which dropped 3.7 percent to P211.