STOCK-MARKET OUTLOOK

Last week

SHARE prices dropped last week, snapping five straight weeks of gains, as investors decided to sell, sending the main index to the 7,000-point level on thin trading.

The benchmark Philippine Stock Exchange index (PSEi) fell 132.80 points to close at 7,932.96 points.

“Investors continued to take profits which started last week after it hit a four-month high of 8,216.92. Sellers were in control of the market, desperately getting out of the market as they don’t believe this market can go higher,” Christopher Mangun, research head at AAA Securities Inc., said.

The main index was down almost all week long, except on Tuesday when it gained a measly 2.96 points.

Volume of trade was thin, only valued at an average of P4.52 billion as against the yearto-date average of P6.27 billion.

Foreign investors were net sellers at P2.43 billion.

“This also marks the end of five consecutive weeks of foreign inflows,” Mangun said. All of the subindices ended in the red, led by the broader All Shares index that fell 71.99 points to 4,752.81 points. The Financials index dropped 25.90 to 1,920.85, the Industrial index plunged 395.99 points to 10,082.34, the Holding Firms index retreated 122.90 to 7,810.42, the Property index was down 51.05 to 4,119.84, the Services index declined 4.49 to 1,547.47, and the Mining and Oil index decreased 350.47 to 8,742.14.

For the week, losers edged gainers 136 to 79, and 31 shares were unchanged.

Top gainers were Republic Glass Corp., Synergy Grid and Development Philippines Inc., Phinma Petroleum and Geothermal Inc., Omico Corp., Philippine Savings Bank and Italpinas Development Corp.

Top losers, on the other hand, were IPM Holdings Inc., Nickel Asia Corp., Pepsi-Cola Products Philippines Inc., Ginebra San Miguel Inc., Now Corp. and Xurpas Corp.

this week

SHARE prices may try to bounce back to the 8,000-point level this week, following its return to the 7,000-level.

Many analysts, however, doubt if the PSEi can remain at the 8,000-level for long. “We may see it bounce from this level and try to target 8,000 in the short term. However, if we have a situation like last week—low trading volumes and massive foreign outflows—the main index will continue lower and test the next support at 7,800,” Mangun said. Broker 2TradeAsia said the fall of the main index last week may be viewed as a technical breather, or a drop after a series of ascents, rather than a fundamental shift even if fund managers decided to sell.

“Year 2020 will be a period of continued stimulus, both for monetary and fiscal policies, aligned to keep the stable growth trajectory in place,” it said.

The broker advised to buy during market price fall, and sees the main index support level at 7,900 and resistance level at 8,150.

stock picks

BROkER Regina Capital and Development Corp. advised to buy the stock of DMCI Holdings Inc. but only when its support price of between P7.41 and P7.17 holds.

“A spike in selling pressure had the stock closing just a few points above its support at P7.43. Both volatility and momentum are continuing to increase, and it looks like these may be enough to weigh down on the stock. Indicators are hinting at a continued downward bias,” it said.

DMCI shares closed Friday at P7.59 apiece.

Meanwhile, the broker gave the same recommendation on the stock of International Container Terminal Services Inc. (ICTSI) with its support price of P120.04 and P114.10 per share.

“With the closest support positioned at 120.04, it seems as if ICTSI may come to challenge this, especially with indicators now starting to support a downward bias,” the broker said. ICTSI shares closed last week at P122.20 apiece.