Stocks are expected to move sideways with a downward bias this week, as investors will likely remain on the sidelines while awaiting the results of the national elections.
“For now, the investing community will be on a wait-and-see mode to check on the market’s quick acceptance of results, which might still be marred by possible protests from candidates inclined to question the counting process,” the research team of online brokerage firm 2TradeAsia.com said.
2TradeAsia.com said the international community would closely watch the elections, particularly the economic platform of the new administration, to ensure political noises were kept to a minimum.
Investors will also monitor the release of first-quarter income reports of listed firms and their profit guidelines for 2016.
Aside from the developments in the local front, developments overseas, particularly Bank of Japan’s move to refrain from making extra stimulus set against the backdrop of negative interest rates and US Federal Reserve’s non-policy action on interest rates could result in a weaker US dollar against the yen.
The Philippine Stock Exchange index, the 30-company benchmark, fell below the 7,000-point level last week, as it closed lower by 2.3 percent to 6,991.87 on May 6, with investors opting to stay on the sidelines ahead of the May 9 national elections.
The broader all-share index also declined 2 percent to settle at 4,163.06.
All major sub-indices ended in the red, led by holding firms which dropped 3.3 percent , services which declined by 2.5 percent and industrial which dipped 1.7 percent.
Foreign investors were net sellers by P780 million last week, as total foreign selling reached P18.3 billion while foreign buying amounted to P17.52 billion.
Top gainers last week were Filinvest Development Corp., which jumped 4.6 percent to P5.70; Philex Mining Corp., which advanced 3.9 percent to P6.14; and PAL Holdings Inc., which rose 3.9 percent to P5.08.
Heavy losers were Pepsi Cola Products Philippines Inc., which declined 8.4 percent to P3.40, LT Group Inc., which dropped 6.5 percent to P14.40 and DMCI Holdings Inc., which went down by 6.3 percent to P11.70.