Share prices fell last week, breaking the main index’s month-long winning streak, as investors cashed in on their gains even during the window-dressing period at the end of November.
The benchmark Philippine Stock Exchange index fell 24.32 points, to end the four-day trading week at 6,245.18 points.
“On a positive note, the market was still able to close last week above its 10-day and 50-day exponential moving averages,” Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financials Inc., said.
Volume of trade was higher during the week, reaching an average value of P5.6 billion.
Foreign investors, which accounted for 58 percent of the trades, were net buyers at P1.93 billion.
All other sub-indices closed in the red, with the exception of the Property index that managed to gain 55.97 points to close at 2,745.85 points. The broader All Shares index fell 16 to 3,332.22, the Financials index declined 10.31 to 1,735.41, the Industrial index shed 180.05 to 8,746.27, the Holding Firms index contracted 58.08 to 5,918.20, the Services index was down 1.08 to 1,520.21 and the Mining and Oil index slumped 26.79 to 9,633.51.
For the week, losers edged gainers 115 to 76 and 40 shares were unchanged.
Top gainers for the week were LMG Corp., Concrete Aggregates Corp. B shares, Atok-Big Wedge Co. Inc., Manila Bulletin Publishing Corp., I-Remit Inc., Atlas Consolidated Mining and Development Corp. and Lepanto Consolidated Mining Co.
Top losers, meanwhile, were Mabuhay Holdings Corp., SP New Energy Corp., Apollo Global Capital Inc., LBC Express Holdings Inc., Max’s Group Inc., Victorias Milling Co. Inc. and East Coast Vulcan Corp.
Share prices may resume its upward trend this week as a growing number of investors are piecing together a picture of a potentially good December for stocks.
That narrative will be tested this week as the market turns its focus on the November inflation print and the October jobs data in the United States, according to Juan Paolo Colet, managing director at China Bank Capital Corp.
“A sustained slowdown in local inflation could persuade the BSP [Bangko Sentral ng Pilipinas] to keep its policy rate steady when the monetary board meets next week. Meantime, signs of a cooling US jobs market would strengthen the view that the Federal Reserve is done with its rate hike campaign. Both outcomes should be positive for equities.”
It will be another four-day trading week as December 8, Friday is a public holiday to celebrate the Feast of the Immaculate Concepcion.
Broker 2TradeAsia noted that the BSP expects November inflation to fall between 4 percent and 4.8 percent, slightly lower than October’s 4.9 percent.
“Another rate pause is very likely at this point, given the Fed’s direction,” it said. “While the case for a dovish pivot by the second half next year is strong in light of statistical improvements in October and November, some reservations must be allowed to account for wildcards.
“Case in point, yields and futures markets are starting to price in anywhere between 100-250 basis points in rate cuts next year–this is a very wide variance and is evident of how opaque the terrain is still, albeit very strong directionally and may signal funds to lighten cash one to two quarters ahead of falling interest rates.”
The market may see continued consolidation in the 6,200 to 6,300 area and could potentially make an attempt for 6,380 in case of positive news flows, according to Colet.
Broker Regina Capital Development Corp. advised traders to sell on rallies on the stock of Aboitiz Power Corp. as based on its technical indicators, the stock may be able to retest its resistance of P38.40 soon.
“However, since the stock has been on the rise for three consecutive days already, it’s not going to be unlikely to see some profit-takers to come out and play,” it said.
AboitizPower was last traded on Friday and closed at P36.60 apiece.
Meanwhile, the broker gave the same recommendation on the stock of BDO Unibank Inc., after its share price ended in the green for the fifth consecutive session before succumbing to profit-taking last week.
“Noticeably, the 260-day moving average seems to be a solid support trendline for the stock. All things considered, BDO shareholders should keep an eye on resistance levels and sell during strengths.”
BDO shares closed last week at P131 apiece.