Last week
Share prices were higher last week, with the main index managing to close at the 6,600-point level, as investors were elated by the central bank’s decision to pause rate increases.
The benchmark Philippine Stock Exchange index (PSEi) gained 86.40 points to close at 6,664.55 points.
The main index was down at the start of the week, but it posted gains on Tuesday and Wednesday, then gave up some points as the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) met on Thursday and decided to keep rates steady.
Value of trade was still anemic, averaging only P4.06 billion during the trading week. Foreign investors, who accounted for half of the trades, were net buyers at P230.72 million.
All of the sub-indices managed to close in the green. The broader All Shares index gained 37.42 points to close at 3,548.37 points, the Financials index rose 27.39 to 1,879.06, the Industrial index was higher by 62.75 to 9,500.72, the Holding Firms increased by 76.31 to 6,613.26, the Property index was up 41.05 to 2,756.20, the Services index added 7.57 to 1,576.95 and the Mining and Oil index climbed 5.47 to 10,296.82.
For the week, gainers and losers are even at 116 each and 22 shares were unchanged.
Top gainers for the week were Atok-Big Wedge Co. Inc., DigiPlus Interactive Corp., Anchor Land Holdings Inc., Mabuhay Holdings Corp., Megawide Construction Corp., Concepcion Industrial Corp. and SOCResources Inc.
Top losers, meanwhile, were Keppel Philippines Holdings Inc. A shares, Chemical Industries of the Philippines Inc., Macay Holdings Inc., TKC Metals Corp., Jackstones Inc., National Reinsurance Corp. of the Philippines and Millennium Global Holdings Inc.
This week
Share prices may rise this week, but analysts said the pause in interest rate increases does not yet inspire confidence among investors.
Broker 2TradeAsia said the economic growth of the United States, factory data and labor data will be monitored in the coming weeks to gauge if the policy actions of the US Federal Reserve have legs to stand on.
It also noted that the first quarter reporting season is over.
“Sectors we highlighted before remained mostly winners. These are the banking, power, property and holding companies, which came in line or beat our expectations. Consumer retail plays were mixed as inflationary forces continue to muddle with sales volume and contribution margins, while some industrials and telco are facing challenging non-core margin squeezes,” the broker said.
The PSEi, it said, is moving at a tight band of 6,400 to 6,700 points for most of the second quarter. It hints at possible breakthroughs. Strong positive catalysts can potentially propel the index close to 7,000 points in the medium term.
Immediate support for the main index is seen at 6,400 to 6,500 points and resistance of up to 6,800 points.
Stock picks
Broker Regina Capital Development Corp. advised to trade the range on the stock of Jollibee Foods Corp. (JFC) as it has broken through its resistance level at P237 per share and its shares are now trading at its moving averages.
“We continue to see some strong buying pressure for JFC and is likely to be trading at a new range. With a definite support, traders should be making a good position at that level,” it said.
Jollibee’s shares closed at P232.60 apiece last week.
Meanwhile, the broker advised to buy when its support price holds on PLDT Inc., at P1,215, after its shares have been performing well in the past days. Its technical readings showed strong buying position and showing signs of less volatility.
“Should the stock hold at support levels, investors should start some trades,” it said.
PLDT shares closed Friday at P1,293 apiece.
