The Philippine Stock Exchange Index is expected to consolidate between 7,700 and 7,800 points over the near-term period with lack of catalysts in the local front.
Analysts said investors might also look for overseas foreign guidance on how the stocks would move this week.
“While we remain a buy on the index, we’ve been flagging the past few days that we would prefer to wait near its recent lows at the 7,620 level given the off technical indicators,” Papa Securities trader Gabriel Perez said.
“With a lack of catalysts in the local scene in the near-term, movement could likely be dictated by US market movement and foreign flows,” he added.
Meanwhile, two initial public offerings, namely Axelum Resources Corp. and All Home Corp., could perk up the market in October.
Axelum will be listed with the PSE on Oct. 7 while All Home has been scheduled for listing on Oct. 10.
The PSEi last week dropped 0.7 percent to close at 7,819.22, while the All Shares Index went slipped 0.9 percent to 4,728.81 on continued foreign selling.
The recent move of the Bangko Sentral ng Pilipinas to cut the policy interest rates failed to boost the market.
Four sectoral indices ended in the negative territory, led by mining and oil which fell 4.3 percent, followed by industrial which slumped 3.5 percent, services which dipped 2.8 percent and holding firms which lost 1 percent.
In contrast, the property index rose 2.1 percent, while financials rose 1 percent.
Foreign investors were net sellers during the week by P1.94 billion, while the average daily value traded was flat at P6.3 billion.
Weekly top price gainers were SM Prime Holdings Inc., which rose 5 percent to P36.50; BDO Unibank Inc., which advanced 3.3 percent to P145; and Ayala Land Inc., which gained 2.9 percent to P49.90.
Weekly top price losers were Alliance Global Group Inc., which declined 11.1 percent to P10.90; Manila Water Co. Inc., which dropped 9 percent to P20.10; and Universal Robina Corp., which fell 6.8 percent to P157.50.
Meanwhile, reports that US President Donald Trump is mulling severe new restrictions on investment in China shook Wall Street on Friday, sending stocks into the red.
The downward shift in New York was an about-face from the general upward movement seen earlier in Europe, where markets climbed as analysts said fresh optimism about the US-China trade talks was taking hold.
Multiple US media reports said the White House is considering proposals to de-list Chinese companies from US stock markets or block US investment in China, threats that appear intended to ratchet up pressure on Beijing to strike a bargain as the trade war stretches into its second year.
Trump has said in recent weeks that Beijing may be holding off on reaching a trade deal, betting that he will not be re-elected next year.
A batch of lackluster economic data released Friday, which underscored the strains the trade war has created for the United States, did not help.
US consumer spending slowed in August, while business investment in manufactured goods and sales of autos, as well as other big-ticket items, also weakened that month, according to the Commerce Department.
US stocks closed the week in the red for the second week in a row, with the Nasdaq recording its worst week in nine. With AFP