Local stocks are expected to remain listless this week, with investors keeping an eye on first-quarter corporate earnings results.
Analysts said the absence of fresh catalysts is pushing investors to remain on the sidelines as the country’s economic situation remains uncertain amid the pandemic.
“The index is trading at a downward bias for some time and a break below 6,300 may mean a revisit of the crucial 6,000 level,” online brokerage firm 2TradeAsia.com said.
“Note, however, that the recent slide was accompanied by markedly thin participation especially on the local side, which may imply that amid uncertainties on the ground, some confidence on the second half recovery is brewing, prompting players to hold,” it added.
Among the companies that will report first-quarter results this week are Aboitiz Equity Ventures Inc., Aboitiz Power Corp. Manila Electric Co. and Wilcon Depot Inc.
One factor that could boost the market sentiments next months is the upcoming initial public offering of Monde Nissin Corp. and the share sale of AC Energy Corp.
The Philippine Stock Exchange Index last week dropped 1.8 percent to 6,378.07, while the broader All Shares Index fell 1.4 percent to 3,927.19 amid lackluster trading.
Except for the industrial index which inched up 0.2 percent, all sectoral indices ended in red led by property (-2.8 percent), mining and oil (2.7 percent) and holding firms (-2.5 percent).
Foreign selling increased to P4.4 billion this year while the average daily value traded was flat at P5.5 billion.
Weekly to price gainers were Atlas Consolidated Mining and Development Corp., which jumped 12.5 percent to P7.28; Century Pacific Food Inc., which rose 8.7 percent to P20.65; and Rizal Commercial Banking Corp., which climbed 4.5 percent to P17.82.
Weekly top price losers were GMA Network Inc., which declined 13 percent to P7.84; JG Summit Holdings Inc., which dropped 7.7 percent to P53.90; and Megaworld Corp., which shed 7.7 percent to P3.12.
Meanwhile, Wall Street rebounded Friday from earlier losses on reports that US President Joe Biden will seek a huge tax hike, but Europe remained on the back foot despite bright economic data.
Wall Street’s main indices had ended Thursday down nearly one percent after the first reports broke of the possible hike that would cut into earnings made on selling stocks.
But after a mixed start on Friday, major indices pushed higher and finished with solid gains. The broad-based S&P 500 gained 1.1 percent.
“US markets appear to be recovering some of their equilibrium after yesterday’s losses, helped by strong economic data, from March new home sales and solid” PMI surveys of business activity, said Michael Hewson, chief market analyst at CMC Markets UK.
US stocks still finished the week modestly in the red, but Friday’s gains cut into the losses.
Wall Street pulled back at the beginning of the week despite mostly strong earnings as investors pondered whether stocks have much more upside after a series of records in early 2021.
In, Europe, stocks mostly fell, despite bright survey data for the region.
London stocks ended the day flat, while Paris dipped 0.2 percent and Frankfurt shed 0.3 percent. With AFP