Last week
Share prices fell last week, with the main index returning to the 6,400-point level, as investors decided to do their quarter-end profit-taking amid uncertainties in the global markets.
The benchmark Philippine Stock Exchange index fell 102.49 points to close the first quarter at 6,499.68 points.
At the start of the week, it looked liked the main index could sustain its upward momentum. However, it lost steam on Friday when it fell by 1.5 percent or 145.07 points.
Year-to-date, the main index is down 66.71 points from its high of 7,094.66 points.
Average daily volume was thin, only reaching a value of P4.34 billion. Foreign investors, which only accounted for 36 percent of the trades, were net buyers at P2.3 billion.
All other sub-indices ended mixed. The broader All Shares index fell 23.35 points to 3,493.37 points, the Financials index rose 15.51 to 1,810.59, the Industrial index declined 110.49 to 9,401.23, the Holding Firms index retreated 163.81 to 6,257.77, the Property index plunged 103.66 to 2,678.36, the Services index gained 25.10 to 1,663.55 and the Mining and Oil index surged 348.66 to 11,023.03.
For the week, losers edged gainers 126 to 90 while 32 shares were unchanged.
Top gainers were Keppel Philippines Properties Inc., Keppel Philippines Holdings Inc. B shares, Manila Broadcasting Co., Medco Holdings Inc., Central Azucarera de Tarlac Inc., Wilcon Depot Inc. and LFM Properties Corp.
Top losers, meanwhile, were Concrete Aggregates Corp. B, Pacifica Holdings Inc., Grand Plaza Hotel Corp., Now Corp., Monde Nissin Corp., Centro Escolar University and Easycall Communications Philippines Inc.
This week
Share prices are expected to go sideways this week as investors will watch for clues for certain economic data, such as the employment and factory data in the United States and the March inflation data for the Philippines.
It will be a three-day trading week as it is a public holiday on Maundy Thursday and Good Friday.
2TradeAsia said the March inflation figures, to be released this week, would be the most watched figure before trading ends as this would dictate the tone for monetary policy for the second quarter.
The Bangko Sentral ng Pilipinas is expecting inflation to slow down and fall within 8.2 percent and 7.4 percent.
“With local trading capped for three sessions due to the Lenten break, brace for thin volumes as lack of stronger catalysts encourage wait-and-see mode until after Easter,” the broker said.
“Third liners and speculative are set to get the most out of generally fragile sentiments with possible windows for bargain hunting amid market’s state of flux.”
Shares of Upson International Corp., retailer of personal computers and information technology products, will be listed on the main board of the Philippine Stock Exchange on Monday. This is expected to give a volume boost to the market.
Immediate support for the main index is seen at 6,400 points and resistance between 6,750 to 6,900 points.
Stock picks
Maybank Investment Banking Group has picked Robinsons Retail Holdings Inc. (RRHI) as proxy for the retail market in the country as online buying declines.
In its research note Hootsuite and Bain and Co. estimates that the Philippines had 69 million digital consumers, or those who have purchased from an online platform at least once. In 2022, Filipinos spent an average of P913 per month online for a combined P75.6 billion, down 5 percent from the previous year.
“The e-commerce industry in the Philippines is still in its nascent stages. Our top pick to play this theme is RRHI given exposure to both brick and mortar and e-commerce platforms,” the bank said.
“We are confident RRHI’s earnings growth trajectory will be stable, supported by its ability to deliver its store expansion target, strong brand equity and quality balance sheet.”
Shares of Robinsons Retail’s shares closed at P53.90 apiece.
Meanwhile, the bank advised clients to buy shares of GT Capital Holdings Inc. as it expects contribution from commercial vehicles to further increase in 2023.
“We raise our 2023/2024 earnings forecasts by 3 percent and 10 percent to reflect our higher net income forecast for MBT [Metrobank], This raises our net asset value-based target price by 3 percent to P930.”
GT Capital’s share price closed Friday at P516 apiece.
