STOCK-MARKET OUTLOOK

Last week

Share prices gained last week, with the main index inching further towards the 7,000-point level on investor optimism following the US Federal reserve’s assurance of its support to the low-interest rate regime in the next few years.

The benchmark Philippine Stock exchange index (Psei) gained 99.13 points to close at 6,950.51 points.

The main index was up for three days during the week, but volume of trade was low as most investors stayed on the sidelines.

Value of trade for the week reached P5.3 billion. Foreign investors, who cornered 32 percent of all the trades, were net sellers at P2.44 billion.

all other subindices managed to post gains with the exception of the holding Firms index that fell 5.04 points to close at 6,931.29 points. The all Shares index rose 62.88 to 4,229.58, the Financials index gained 8.97 to 1,500.37, the Industrial index rose 178.37 to 9,542.40, the Property index surged 122.31 to 3,415.61, the Services index was up 24.90 to 1,583.55 and the Mining and Oil index increased 11.35 to 9,322.39.

For the week, gainers led losers 140 to 85 and 22 shares were unchanged.

Top gainers for the week were Philippine realty and holdings Corp., Philippine estates Corp., Century Properties Group Inc., Cityland Development Corp., Vivant Corp. and Wellex Industries Inc.

Top losers were ever-gotesco resources and holdings Inc., Jolliville holdings Corp., Philodrill Corp., Macay holdings Inc., Manila Mining Corp. a and B shares and Integrated Micro-electronics Inc.

this week

Share prices may record gains this week as the main index is expected to pierce the 7,000-point mark on renewed investor optimism.

“after a strong rejection of the 7,000-level a fortnight ago, the Psei looks to finally trounce this psychological resistance, this time with a better outlook for the second half of the year supporting the buying thesis,” broker 2Tradeasia said.

Many companies will also do their month- and quarter-end window dressing during the week, which could increase this week’s volume of trade.

The broker said many investors are also expecting a huge comeback for the income of many companies for the second quarter, though many may not still achieve their 2019 levels.

“adjusted core earnings are expected to balloon as much as 230 percent, driven by base effect and dramatic margin changes,” it said.

Immediate support for the main index is seen at 6,800 and resistance at 7,000 to 7,050.

stock picks

Broker regina Capital Development Corp. advised to sell on rallies on the stock of Monde Nissin Corp., as the company’s share price started increasing since its initial public offering earlier this month.

“The stock effectively broke out of its previous resistance and an alltime high of P14.78, as it spiked as high as P15.60 intra-day. The sudden 4-percent uptick in prices might prompt some investors to cash in on gains. We can expect some pullback should this occur. however, the nearest support is at P14.76,” the broker said.

Monde shares closed Friday at P15.34 apiece.

Meanwhile, the broker advised to hold on to the shares of lender BDO Unibank Inc. as its share price has eased and consolidated after its twoday downturn some two weeks ago.

“There is still some leftover bullishness from the indicators that stemmed from the steady upward trajectory that began in late May. however, the momentum is already showing signs of possible tapering,” the broker said.

“It seems that BDO would be range-bound, as the buying pressure from the indicators continues to wane.”

BDO shares closed last week at P115 apiece. VG Cabuag