STOCK-MARKET OUTLOOK

Last week

Share prices gained during the last trading week of 2022, despite the low volume of trade.

The benchmark Philippine Stock exchange index rose 25.36 points to close the year at 6,566.39 points.

The main index was down almost 8 percent or 556.24 points for the year. It climbed to as high as 7,502.48 points and fell to as low as 5,741.07 points in 2022.

average value of trade for the three-day trading week was at P4.09 billion, lower than the 2022 average of P5.92 billion.

Foreign investors, who accounted for 31 percent of the trades, were net buyers but for a mere P39.81 million. For the year, foreigners were net sellers at P67.48 billion, accounting for more than 40 percent of the trades.

Other sub-indices were mostly up, led by the broader all Shares index that gained 29.57 points to close at 3,462.04 points, the Financials index was up 4.32 to 1,645.03, the Industrial index was down 9.55 to 9,351.16, the holding Firms index fell 10.37 to 6,433.27, the Property index surged 52.37 to 2,928.71, the Services index rose 27.90 to 1,634.23 and the Mining and Oil index expanded 249.26 to 10,808.92.

For the week, gainers led losers 133 to 72 and 36 shares were unchanged. Top gainers were Keppel Philippines Properties Inc., Vivant Corp., Ferronoux holdings Inc., First abacus Financial holdings Corp., Philippine Trust Co., roxas holdings Inc. and Nihao Mineral resources International Inc.

Top losers, meanwhile, were Manila Broadcasting Co., LFM Properties Corp., apollo Global Capital Inc., ATN holdings Inc. B shares, Primex Corp., Metro alliance holdings and equities Corp. a and Lepanto Consolidated Mining Co. a.

this week

Share prices may post gains during the first trading week of 2023 as investors may revert to their usual trading practices at the start of the year.

It will be another shortened trading week with as Monday was declared a public holiday.

Broker 2Tradeasia said in the face of uncertainties over the macro picture for the year, the trading strategy for the year remains intact—prioritizing quality over market impulses as balance sheets have yet to fully adjust to the impact cost of capital and falling consumer confidence.

Inflation data for December will be released this week, with consensus slanted towards more than 8 percent due to higher agricultural commodities, electricity rates and pull factors from seasonal demand.

The policymaking Monetary Board of the Bangko Sentral ng Pilipinas will not have its meeting until February 16, which is after the United States Federal reserve’s meeting on January 31.

“This information dump early in the year may usher broad-based volatility, but also forces monitoring of other key input such as labor data, forex that start a trend above P55 to $1 and crude oil, with China pushing oil futures market, both of which can complicate stories for 2023,” it said. “hold tight to growth narratives in 2023. after all, hope springs eternal.”

Immediate support for the main index is seen at 6,400 points and resistance at 6,600 points.

stock picks

Broker regina Capital Development Corp. gave a sell on rallies recommendation on the stock of Union Bank of the Philippines (UBP).

“Investors with attractive positions may consider lightening up before a price correction occurs while the buying momentum is still intact. Note that at UBP’S closing price, the stock is already at a premium to its key price levels,” it said.

Union Bank shares were last traded at P86.10 apiece.

Meanwhile, it advised to trade the range on the stock of SM Investments Corp. (SMIC). Its share price may trade between P898 to P940 per share.

“This implies that SM is likely going to trade sideways but with an upward bias.”

SMIC shares closed last year at P900 apiece.