STOCK-MARKET OUTLOOK

Last week

Share prices fell for the third straight week, with the main index returning to the 6,700 point level, as investors continued to take profits.

The benchmark Philippine Stock exchange index (Psei) fell 131.55 points to close at 6,794.86 points.

The main index was mainly down during the shortened trading week, slightly recovering on Friday for the month-end window-dressing of companies.

average value of trading for the week remained high at P11.23 billion, while foreign investors were net sellers at P4.23 billion. Foreign transactions only averaged at 33 percent for the week.

all other subindices were mostly down led by the broader all Shares index that shed 78.70 points to 4,120.30 points, the Financials index rose 5.69 to 1,477.19, the Industrial index declined 308.59 to 8,655.34, the holding Firms index plunged 267.32 to 6,920.08, the Property index was up 11.46 to 3,457.14, the Services index was down 26.01 to 1,453.36 and the Mining and Oil index fell 65 to 9,331.67.

For the week, losers edged gainers 169 to 76 and 10 shares were unchanged.

Top gainers for the week were Bright Kindle resources and Investments Inc., Philippine estates Corp., Boulevard holdings Inc., Prime Media holdings Inc., Cebu holdings Inc. and Discovery World Corp.

Top losers were abra Mining and Industrial Corp., republic Glass holdings Corp., PTFC redevelopment Corp., DFNN Inc., Basic energy Corp. and abacore Capital holdings Inc.

this week

Share prices may continue to fall as trading is expected to remain volatile. Investors may base their trading decisions on another wave of financial reporting and the release of inflation data for February, which will happen this week.

Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financials Inc., said inflation expectations are expected to be one of the main drivers of the market ahead of the release of the February consumer price index data.

“We see a downward bias for the local bourse amid elevated inflation expectations that has just gained support from the Bangko Sentral ng Pilipinas’ range projection of 4.3 to 5.1 percent which is above the government’s target,” he said.

“a surge in inflation is seen to aggravate the situation of our struggling economy which is still trying to recover from the pandemic-induced recession.”

Broker 2Tradeasia said the past sessions have been characterized by wild intra-day swings even for the blue chip stocks, which indicates the general fragile direction of te market.

“The next big impetus will be on the national vaccination drive; pending any headline on that front. expect volumes to cycle towards the speculative second- and third liners, as broad market uncertainty may likely push funds to make quick in and out trades.”

Immediate support for the main index is seen at 6,600 and resistance at 7,000.

stock picks

Broker regina Capital .Development Corp. advised to cut loss on the stock of DITO CME holdings Corp. as its share price is plunging. Its share price fell 10 percent on Wednesday to end the session at P16.

“The dip was deep enough to get DITO out of the overbought region. DITO’S price could still hover around its immediate support at P14.90,” it said.

DITO’S share price closed Friday at P16.14 apiece.

Meanwhile, it advised to trade the range on the stock of SM Investments Corp. as it remained traded below its 50-day moving average.

“Generally speaking, indicators are mostly bearish on the stock. Overall, despite the bearishness, SM might just continue to be traded sideways in the near-term with support at P1,029.50,” it said.

SMIC share price closed last week at P1,009 apiece.