LAST WEEK
SHARE prices gained last week, snapping its eight straight weeks of decline after the US Federal Reserve decided to delay its interest-rate hike, which remained at near zero since 2008.
The benchmark Philippine Stock Exchange (PSE) index gained 220 points, or 3.2 percent, to close on Friday at 7,131.91, but foreign investors kept on dumping Philippine shares.
The main index was up all weeklong, gaining the most on Monday with 157.80 points and adding some points during the remaining days of the week.
Value of turnover was still anemic during the week as investors remained in the sidelines, though it was unusually high on Tuesday with the acquisition of Lafarge Republic Inc. shares by AEV CRH Holdings Inc. and CRH Aboitiz Holdings Inc., which led to block sales of P59 billion.
Foreign investors, however, continue their selling activity and were again net sellers at P24.52 billion.
Other subindices ended higher. The All Shares index rose 112.95 to 4,076.60; the Financials index gained 46.38 to 1,572.23; the Industrial index was up 299.20 to 10,827.96; the Holding Firms index soared 202.01 to 6,621.74; the Property index was higher 168.68 to 2,994.80; the Services index expanded 6.09 to 1,783.57; and the Mining and Oil index added 135.70 to 11,260.37.
For the week, there were 143 winners as against 71 losers and 18 were unchanged.
Top gainers were Ionics Inc., Mabuhay Vinyl Corp., Medco Holdings Inc., Seafront Resources Corp., Island Information and Technology Inc. and Roxas and Co. Inc., while top losers were Keppel Philippines Properties Inc., Discovery World Corp., F and J Prince Holdings Corp., PTFC Redevelopment Corp., Travelers International Hotel Group Inc. and Trans-Asia Petroleum Corp.
THIS WEEK
TRADING at the PSE will remain volatile this week, a four-day work week, as many analyst said the main index will remain in a corrective stance.
There will be no trading on September 25 in observance of Eid’l Adha, or Feast of Sacrifice for the Muslims.
“For the next week, we expect sideways movement ahead of the China manufacturing index release. Although markets may rally due to the delay in the rate hike and lowered expectations for the occurrence of a rate hike within the year, the release of another underwhelming China PMI [purchasing managers’ index] data may reverse sentiment to risk-off,” Bank of the Philippine Islands said in its research note.
Meanwhile, Luis Limlingan, managing director at Regina Capital Development Corp., said prices of the main index should remain above 7,110 points in order to reach 7,200 points.
“Otherwise, it is very likely that the index will suffer from corrections to 6,800 points. Also, we must be cautious of the index volatility as weekly range expanded from 76 to 95 points, indicating sharper intraday moves,” Limlingan said.
STOCK PICKS
BROKER Regina Capital said it sees more upward bias on mining firm Semirara Mining and Power Corp. as its 20-day moving average crossed above 50-day moving average that points to a bullish stance.
“However, short-term technical readings lost momentum, but as long as P130 support holds, we expect prices to keep its uptrend intact and retest 200-day moving average at P145.50.
Semirara closed higher on Friday at P137.
Philippine Long Distance Telephone Co. (PLDT) triggered an oversold rally last week.
The broker said that it is expecting rallies towards 20-day moving average resistance but failure to breach will send prices back to weekly support.
“A successful breach will allow more rallies toward P2,560–P2,640. We advise selling on rallies as trend bias remains bearish,” it said, placing a target price at P2,560 on the stock.
PLDT was down last week to close on Friday at P2,340 apiece.