Stocks are expected to move sideways in the first trading week of 2017 as investors look at developments overseas for guidance.
The equity research team of online brokerage firm 2TradeAsia.com said the market would start the year with fresh economic data from China, the Philippines and the US. These include China manufacturing PMI, US jobs addition in December, minutes of Federal Reserve meeting and December inflation in the Philippines.
Minutes of Fd meeting “could help investors differentiate the Fed’s tone and identify as to whether Federal Reserve’s plan to hike three times in 2017 is firm enough relative to the earlier issued statement,” 2TradeAsia.com said.
“Nonetheless, focus will likely be on transition of the US administration on 20 January, as investors bet on robust fiscal spending to boost the US economy. All eyes will be on global and local fiscal policies, ahead of major spending changes,” it said.
Luis Limlingan, managing director of Regina Capital Development Corp., said he also expected global growth to stabilize in 2017, which could boost the possibility of US Fed hiking interest rates this year.
The Philippine Stock Exchange index, the 30-company benchmark, jumped 4.2 percent last week, to close at 6,840.64 on Dec. 29, while the all-share index climbed 3.3 percent to 4,156.07.
Foreign investors were net buyers by P445 million as total foreign buying reached P6.95 billion while foreign selling amounted to P6.51 billion.
Except of the mining and oil index which declined 0.6 percent, all major subindices ended in the green, led by property which advanced 4.8 percent, holding firms which went up 4.8 percent and industrials which rose 3.8 percent.
The PSEi was down 1.6 percent in 2016. Foreign investors were net buyers last year by P2.15 billion.
Top gainers last week were Metro Pacific Investments Corp. which jumped 11.2 percent to P6.66, Puregold Price Club Inc. which increased 8.3 percent to P39 and BDO Unibank Inc. which rose 6.8 percent to P112.10.
Heavy losers were PhilWeb Corp. which declined 5.6 percent to P10.60, Security Bank Corp. which dropped 5 percent to P190 and Cemex Holdings Philippines Inc. which shed 2.6 percent to P11.10.