Stock market to trade in tight range

The stock market will likely trade within a tight range this week week due to lack of significant catalysts that could push it out out of its sideways movement.

Analysts said investors were waiting for a signal that domestic demand was picking up and that the economic recovery was gaining traction.

Investors are also expected to stay on the sidelines until the November US presidential elections.

“The market may be more inclined to trade within range for now, until after the US elections are finalized by November. This, plus indicators that COVID-19 will remain a major concern by at least first half of 2021, explain the 26-day consecutive net foreign selling,” online brokerage firm 2TradeAsia.com said.

The Philippine Stock Exchange Index last week ended in the negative territory, dropping 0.6 percent to close at 5,898.47, while the broader All Shares Index declined 0.6 percent to 3,563.85.

Sectoral indices showed mixed results. Mining and oil index jumped 12.7 percent after President Duterte lifted the oil exploration moratorium in the West Philippine Sea, while the property, financial and industrial sectors gained 1.6 percent and 1.1 percent, respectively,

Holding firms fell 2.7 percent while the service index slipped 0.9 percent.

Foreign investors were net sellers for the week by P3.63 billion, while the average daily value traded stood at P5.5 billion from the previous week’s average of P9.3 billion.

Top gainers were oil exploration firms Atok-Big Wedge Co. Inc., which jumped 49.9 percent to P11.54; PXP Energy Corp., which surged 45.4 percent to P7.72; and Apex Mining Co. Inc., which climbed 31.4 percent to P2.09.

Weekly price gainers were ABS-CBN Corp., which declined 14.8 percent to P12.20; Puregold Price Club Inc., which fell 9 percent to P41.40; and JG Summit Holdings Inc., which dropped 4.9 percent to P59.70.

US stocks, meanwhile, ended the week mixed on Friday as optimism over positive economic data was tempered by a soaring US deficit and the growing realization a new stimulus package is unlikely anytime soon.

Better-than-expected retail sales data and consumer confidence showed Americans remain willing to spend—for now—and shares were boosted by positive news about Boeing’s 737 MAX and drugmaker Pfizer.

The benchmark Dow Jones Industrial Average gained 0.4 percent to finished an up-down week at 28,606.31, while the broad-based S&P 500 was essentially flat, rising just 0.1 percent to end at 3,483.81.

But declines by industry titans like Amazon, Apple and Netflix reversed early gains in the tech-rich Nasdaq, which lost 0.4 percent to close at 11,671.55.

US retail sales climbed 1.9 percent in September, triple expectations, with purchases of cars and parts, clothing and sporting goods increasing dramatically, according to the Commerce Department report released before markets opened.

The data was a reassuring sign of the economy’s resilience after key provisions of the $2.2-trillion CARES Act preventing layoffs and providing support to consumers expired in recent months. With AFP