Share prices were slightly down, as market weakness permeated for most of the trading days, but recovered on Friday, as investors were elated with the United States Congress’ move to lift the debt ceiling and averted a default.
The benchmark Philippine Stock Exchange index fell 18.19 points to close at 6,512.01 points. The main index started the week strong, but fell for three straight days even on month-end. It gained much of the loss on Friday.
Most of the sub-indices ended in the red led by the broader All Shares index that shed 13.21 points to close at 3,474.87 points. The Financials index rose 20.42 to 1,836.09; the Industrial index fell 134.26 to 9,208.90; the Holding Firms index declined 56.36 to 6,483; the Property index plunged 53.11 to 2,650.34; the Services index was up 24.66 to 1,550.54; while the Mining and Oil index was down 35.97 to 10,039.14.
For the week, losers edged gainers 118 to 102, while 26 shares were unchanged. Top gainers were Boulevard Holdings Inc., PH Resorts Group Holdings Inc., Vulcan Industrial and Mining Corp., Top Frontier Investment Holdings Inc., DITO CME Holdings Corp., Roxas Holdings Inc. and LMG Corp.
Top losers, meanwhile, were Petron Corp., Mabuhay Holdings Corp., Keppel Phils. Holdings Inc.-B shares, Dizon Copper-Silver Mines Inc., Monde Nissin Corp., Vivant Corp. and Premiere Horizon Alliance Corp.
SHARE prices may rise, as the passing of the US debt ceiling bill may continue to give the local market an upward boost.
Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financials Inc., said investors are also expected to take cues from the Philippines’s upcoming May inflation data: “A further slowdown in our inflation may also strengthen the positive sentiment.”
The market may also take cues from upcoming labor market and foreign trade data, as Tantiangco forecasts: “The market’s chart remains bearishly biased, with the bourse posting losses for the second straight week. Also, the market remains below its 10-day, 50-day, and 200-day exponential moving averages. Finally, value turnover remains thin, implying that many are still out of the market.”
Juan Paolo Colet, managing director at China Bank Capital Corp., said that after last week’s volatility and large foreign outflows, the market will try to find its footing in the 6,400 to 6,600 zone: “The lifting of the US debt limit for two years removes a major overhang on equity markets, and gives a temporary shot of optimism.”
Colet added that investors will also weigh the outlook for US interest rates, in view of mixed signals on whether the Federal Reserve will skip a policy rate hike this month: “We are also mindful of data out of China where the postpandemic economic recovery seems to be losing steam, which could have spillover effects on Southeast Asian economies.”
The local bourse’s trading range is seen from 6,400 to 6,600.
BROKER Regina Capital Development Corp. gave a buy when its support price held on the stock of Ayala Land Inc., as its share price was back at its support when it fell down to P25.85.
“All indicators are showing bearishness,” it said. “However, this can still be played by bargain hunters, as this area is where the stock is known to bounce back toward P27 levels.” Ayala Land’s shares were last traded at P25.95 apiece.
Meanwhile, the broker gave the same rating on the stock of SM Prime Holdings Inc. after its share price was down almost 5 percent the past two days, with indicators suddenly turning bearish: “This can also be traded by bargain hunters, as this area is where the stock is known to bounce back toward P34 levels.”
SM Prime shares closed Friday at P32.85.