Shares are seen to trade sideways this week as investors continue to weigh the developments overseas, especially the US-China trade negotiations and the impeachment hearings against US President Donald Trump.
BDO Unibank Inc. chief investment strategist Jonathan Ravelas said while the market managed to crawl back to the 7,800-point level, the increase was not sustainable due to continued risks.
“The week’s close at 7,801.72 highlights the bounce is not sustainable. Risk lies at the break below 7,700 which paves the way for a test of the year’s low at 7,514.05, which could occur in the near term,” he said.
Luis Limlingan, head of sales of Regina Capital Development Corp., said investors were opting to stay on the sidelines as the impeachment proceedings against Trump
had gained momentum.
The Philippine Stock Exchange Index last week closed rose 0.8 percent to 7,801.72 on bargain hunting following the positive inflation data.
The broader All Shares Index added 0.3 percent to 4,645.96.
Three of the six sectoral indices posted week-on-week gains, namely financials which advanced 1.8 percent, holding firms which rose 1.6 percent, and property which gained 1.4 percent.
The mining and oil index dropped 6.7 percent, while the services and industrial registered week-on-week declines of 3 percent and 2.3 percent, respectively.
Foreign investors were net buyers last week by P444 million, a turnaround from the previous net foreign selling of P8.3 billion .
The average daily value traded, however, dropped P6 billion from the previous week’s average of P9 billion.
Weekly top price gainers were Aboitiz Equity Ventures Inc., which advanced 7.8 percent to P52.80; Jollibee Foods Corp., which increased 5.1 percent to P202; and SM Prime Holdings Inc., which rose 3.9 percent to P40.80.
Weekly top price losers were Metro Pacific Investments Corp., which dropped 14.8 percent to P3.66; Manila Water Co Inc., which declined 12.8 percent to P16.30; and Universal Robina Corp., which fell 9.4 percent to P136.