LAST WEEK
SHARE prices fell last week after US Federal Reserve (the Fed) Chairman Janet Yellen made hawkish statements that sent investors dumping risky assets, exacerbated by concerns on the weakness of the Chinese economy.
The benchmark Philippine Stock Exchange index (PSEi) shed 66.94 points to close at 6,850.61 points. The main index was down 1.5 percent at the start of the week, even reaching 6,720.82 points on Tuesday, after the statement of US Fed chairman.
It slightly recovered at the end of September, mainly as a result of companies’ window-dressing for their end-of-the-quarter activities, but went to a decline at the start of the month.
Foreign investors were again net sellers at P393.12 million.
The average value of trade was still low at P5.9 billion.
All other subindices were down, with the exception of the Property index that climbed 16.14 to 2,839.67.
The All Shares index shed 33.89 to 3,957.19; the Financials index lost 3.39 to 1,539.78; the Industrial index fell 61.68 to 10,690.05; the Holding Firms index declined 52.63 to 6,396.42; the Services index dropped 71.74 to 1,633.9; and the Mining and Oil index plunged 262.57 to 10,734.64.
For the week, losers again edged out gainers 134 to 79 and 22 shares were unchanged.
Top gainers for the week were TKC Steel Corp., I-Remit Inc., Liberty Telecoms Holdings Inc., Forum Pacific Inc., Dizon Copper Silver Mines Inc. and Yehey! Corp.
Top losers were Melco Crown (Philippines) Resorts Corp., Mabuhay Vinyl Corp., Keppel Philippines Properties Inc., Transpacific Broadband Group International Inc., Bloomberry Resorts Corp. and United Paragon Mining Corp.
THIS WEEK
SHARE prices are expected to fall again this week as trading will take its cue from the overseas news. For the week, the government will release its figures for the country’s inflation and exports, which would also set the tone for trading during the week.
“The PSEi should trade between 6,700 and 6,900 with main catalysts being the local inflation and export number, and further developments in the US and China,” Bank of the Philippine Islands said in its research note.
Luis Limlingan, managing director at Regina Capital and Development Corp., advised traders to stay light on their positions, but buy on those issues that are still trading in its respective long-term moving averages.
“PSEi needs to stage a rally above 6,900 this week as weekly support of 6,860 has been breached. Failure to recover would lead to deeper corrections back to weekly low of 6,720 possibly extending to 6,600,” Limlingan said, adding that there might be sideways volatility during the week.
STOCK PICKS
BROKER Regina Capital said it still holds its “sell” recommendation on the stock of Philippine Long Distance Telephone Co. (PLDT) as prices failed to hold its weekly support.
“Until rallies are triggered, we expect further declines to four-year support of P2,100. In case of rallies, we advise taking advantage of these to sell positions as trend bias will remain bearish even if prices retrace back to 2,400,” the broker said.
PLDT closed lower on Friday at P2,136.
Prices of BDO Unibank Inc., the country’s largest lender, rebounded and increased its buying pressure.
“Breaking P105.50 intraday resistance will raise a ‘strong buy’ and allow advances toward our
short-term price target of P109,” the broker said.
BDO closed unchanged last week at P105.
Meanwhile, Jollibee Foods Corp. may have broken its three-month downtrend line, but prices are still under pressure.
The broker recommended to sell the stock on rallies until it sees a clear reversal signal.
Jollibee closed on Friday higher at P192.80 per share.