Share prices gained last week mainly on the big gains made by investors on Tuesday, despite a record-setting inflation rate for November.
The benchmark Philippine Stocks Exchange index rose 90.47 points to close at 6,580.12 points.
The main index gained 232.25 points on Tuesday, but lost more than half of it the next trading session. It was a four-day trading week, as December 8 was a public holiday.
Average daily trading reached P5.28 billion, still lower than the year-to-date average of about P6 billion.
Foreign investors, which made up half of the trades, were net sellers at P1.54 billion.
Among the sub-indices, only the Industrial index fell by 32.29 points to close at 9,279.81, while all others closed in the green.
The All Shares index gained 17.75 to 3,437.40, the Financials index was up 2.76 to 1,639.38, the Holding Firms index climbed 107.87 to 6,361.57, the Property index gained 33.75 to 2,859.10, the Services index rose 44.95 to 1,732.41 and the Mining and Oil index increased 173.11 to 10,576.38.;
For the week, losers edged gainers 106 to 98 and 43 shares were unchanged.
Top gainers were Makati Finance Corp., Prima Media Holdings Inc., Dizon Copper-Silver Mines Inc., LBC Express Holdings Inc., Now Corp. and Ionics Inc.
Top losers, meanwhile, were F and J Prince Holdings Corp. B shares, Concrete Aggregates Corp. A and B, Anchor Land Holdings Inc., Vistamalls Inc., Eagle Cement Corp., Megawide Construction Corp. and EEI Corp.
Trading may still be volatile this week as extending the main index’s ascent may be difficult due to lingering economic concerns.
Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financials Inc., said the upside risks to inflation could still come from food and electricity prices. On a positive note, downside risks to inflation are seen stemming from the strengthening peso and declining global oil prices.
“Aside from inflation concerns, offshore recession worries amid the Federal Reserve’s monetary tightening may weigh on sentiment.”
Investors are also expected to watch out for the Bangko Sentral ng Pilipinas’s policy decision with a 25 to 50 basis points policy rate hike anticipated by the market this week.
“Investors are expected to watch out for clues regarding the outlook of the country’s inflation on the BSP’s upcoming policy meeting. Aside from this, investors may also take cues from our upcoming foreign direct investments and foreign trade data,” he said.
Meanwhile, broker 2TradeAsia said capital markets are expected to gyrate with the United States Federal Reserve’s final policy meeting for the year, which will also happen this week.
“Baseline expectations is for the Fed to hike by slightly less aggresive 50 basis points to end its four consecutive 75 basis points increases,” it said. “It will be interesting how the local central bank will handle the terrain for 2023 given the recent inflation data went outside the consensus comfort range.”
Chartwise, the local market may continue to test its resistance at 6,600 points, while immediate support is seen at its 200-day exponential moving average.
Broker Regina Capital Development Corp. advised clients to buy when its support price holds on the stock of Globe Telecom Inc. (GLO) as last week’s scene saw the stock reversing its earlier-day losses as bargain hunters entered the scene.
“However, all indicators are still relatively bearish toward the stock. That said, it’s more likely to see GLO trade sideways, at least for this week, before it continues its climb towards P2,400,” it said.
Globe’s share price was last traded on Friday at P2,160.
Meanwhile, the broker gave a buy recommendation for pullbacks on the stock of Ayala Land Inc. as the bulls are preparing to push it for a breakout.
“The (technical) indicators unanimously signal buy,” it said.
Shares of Ayala Land closed last week at P29.20 apiece.