Last week
Share prices rose last week, despite anemic volumes, as investors were elated by the slew of good news, such as easing inflation and the positive financial outcomes reported by listed firms.
The benchmark Philippine Stock Exchange index (PSEi) gained 60.58 points to close at 6,685.66 points.
The main index was up at the start of 4-day trading week on Tuesday, but lost points on Wednesday. It was up during the rest of the week, especially after the government announced that inflation for April eased to 6.6 percent, the lowest since August last year.
Volume of trade, however, was still low, averaging only at P3.98 billion. Foreign investors, who accounted for 41 percent of the trades, were net sellers at P2.35 billion.
Most sub-indices ended in the green, led by the broader All Shares that gained 23.53 points to close at 3,556.06 points, the Financials index lost 29.96 to 1,888.17, the Industrial index was up 91.24 to 9,597.13, the Holding Firms index surged 118.24 to 6,524.03, the Property index added 62.28 to 2,797.77, the Services index fell 3.36 to 1,601.84 and the Mining and Oil index rose 82.35 to 10,668.89.
For the week, gainers led losers 123 to 98 and 24 shares were unchanged.
Top gainers were Easycall Communications Philippines Inc., Prime Media Holdings Inc.,
Pacifica Holdings Inc., Anchor Land Holdings Inc., Medco Holdings Inc., Republic Glass Holdings Corp. and Century Peak Holdings Corp.
Top losers, meanwhile, were Roxas Holdings Inc., iPeople Inc., PH Resorts Group Holdings Inc., LMG Corp., Millennium Global Holdings Inc., Philippine Estates Corp. and Discovery World Corporation
This week
Share prices may still go up this week as the market may sustain the rally it staged during the past trading days.
“Positive momentum from last week could see investors in a dance of bulls and bears in the coming trading days as US April inflation and Philippine first quarter GDP (gross domestic product) figures are released and as the index trades near the 6,700 to 6,750 resistance zone,” Juan Paolo Colet, managing director at China Bank Capital Corp., said.
He said the PSEi could sustain a rally if domestic economic growth surprises on the upside and US inflation shows signs of abating. Guidance from the Bangkok Sentral ng Pilipinas on the direction of interest rates will also influence market activity.
Broker 2TradeAsia said there are still “pockets for anxiety” especially for continued margin erosion due to the impact of inflation affecting corporate expenses, which could lead to dividend contractions.
“When doves come calling, so do the bulls. Expect buoyant trades in the short term to rise on macro-related headwinds, but brace for those moving to take advantage of the buoyancy to cash out modest gains,” the broker said.
Immediate support for the main index is seen at 6,450 points and resistance at 6,750 to 6,800 points.
Stock picks
Broker Regina Capital Development Corp. gave a trade the range advise on the stock of SM Investments Corp. (SMIC) after its shares rose over the past trading sessions, and are now consolidating at higher levels.
“SM used to trade within a range, but is trying to form a bullish triangle formation in order to push prices above P920, its resistance level,” the broker said.
SMIC shares were last traded at P925.50 apiece.
Meanwhile, the broker advised to buy on pullbacks on the shares of BDO Unibank Inc., the country’s largest lender, as its shares has started to pullback and go up back again as volatility starts to stay at its highest levels.
“Still, BDO continues to be the market leader with buying pressure still at large. This can be traded on a buy on pullbacks as we can take advantage of the stock’s volatility in order to buy at lower levels and quickly sell when it bounces up,” it said.
BDO shares closed last week at P140.50 apiece.
