STOCK-MARKET OUTLOOK

Last Week

SHARE prices recovered last week, but trading was lackluster after investors remained on the sidelines.

The benchmark Philippine Stock Exchange index gained 155.34 points to close at 7,797.11 points

Trading, only averaged for the week at P5.23 billion.

“The market only traded P26.19 billion this week which is below the weekly average. This tells me that investors are still not convinced of the rally and are still sitting on the sidelines waiting,” said Christopher Mangun, research head at Eagle Equities Inc.

Foreign investors were net sellers at P296.52 billion.

“Even retail traders that have focused on second liners and speculative issues have started to sit on the sidelines as most of our top gainers for the week were blue chips,” he said.

All other subindices managed to gain points during the week with the exception of the Mining and Oil index that fell 220.58 to 8,139.15.

The broader All Shares index was up 87.29 to 4,817.22; the Financials index gained 77.47 to 1,760.86; the Industrial index surged 242.38 to 11,580.39; the Holding Firms index rose 105.79 to 7,798.76; the Property index climbed 19.69 to 3,945.68; and the Services index increased 32.22 to 1,550.64.

Gainers and losers for the week were equal at 112 and 24 shares were unchanged.

Top gainers were Philippine National Bank, Boulevard Holdings Inc., Macay Holdings Inc., Asian Terminals Inc., Oriental Petroleum and Minerals Corp. A, and Cemex Holdings Philippines Inc.

Top losers were Philippine Infradev Holdings Inc., Manila Mining Corp. B, Greenergy Holdings Inc., Lodestar Investment Holdings Corp. and Philodrill Corp.

This Week

THE movement of share prices may remain sideways this week as investors are still looking for impetus to trade.

“Overall, this is a good start for the month of March, but we may continue to see sideways movement in the following weeks,” Mangun said.

Broker 2TradeAsia said investors will stay on the sidelines for now, waiting for the outcome of the May elections.

“Participants will heed for resumption of Congressional session to work on pending bills, among which includes the second phase of the tax program,” it said.

“Seasoned players have to take cognizance in managing risks by setting appropriate entry and exit price targets,” it said, adding it sees immediate support for the main index at 7,500 points and resistance at 7,950.

Stock Picks

BROKER Regina Capital and Development Corp. gave a hold recommendation on the stock of PLDT Inc.

“Despite strongly bearish indicators, TEL was able to hold its support of P1,025. Nevertheless, the stock still shed 13 points after three consecutive days of ending positively,” the broker said.

It gave a weekly target for the stock at P1,080 per share.

PLDT closed last week at P1,075 per share.

It gave a buy recommendation during breakout on the stock of Metro Pacific Investments Corp.

“MPIC had a very positive week, always managing to close in the green after testing its strong support of P4.56 the week prior. Despite the strongly bullish signals being given off by its indicators, MPIC closed unchanged,” it said.

Shares of MPIC closed at P4.92 apiece.