STOCK-MARKET OUTLOOK
Last week
SHARE prices slid slightly last week as the main index shrugged off the gross domestic product (GDP) figures for 2022 of 7.6 percent, touted by officials as the country’s highest in 46 years.
The benchmark Philippine Stock Exchange index fell 4.46 points to close at 7,052.16 points.
The main index moved sideways all week, moving within its resistance range of 7,000 points to 7,100 points.
“Advancing further has been difficult amid lingering macroeconomic concerns from inflation to interest rates to external headwinds,” Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financials Inc., said. “Adding to this is the lack of catalysts that would support our economic outlook.”
The market saw lower volume of trade, only valued at an average of P4.8 billion, with foreign investors, who just cornered 30 percent of the trades, were net buyers at P1.78 billion.
Other sub-indices ended mixed. The All Shares index gained 14.77 points to close at 3,697.63 points. The Financials index rose 4.63 to 1,816.69. The Industrial index fell 27.36 to 9,888.83. The Holding Firms index was up 49.56 to 6,892.35. The Property index was down 7.67 to 3,115.97. The Services index declined 16.37 to 1,758.68 and the Mining and Oil index dropped 217.54 to 11,601.36.
For the week, gainers led losers 135 to 96 and 23 shares were unchanged. The top gainers were Cemex Holdings Philippines Inc., Xurpas Inc., Roxas Holdings Inc., Chemical Industries of the Philippines Inc., Transpacific Broadband Group Int’l. Inc., Roxas and Co. Inc. and Harbor Star Shipping Services Inc.
The top losers, meanwhile, were Easycall Communications Philippines Inc., Now Corp., Jackstones Inc., Berjaya Philippines Inc., Premiere Horizon Alliance Corp., Liberty Flour Mills Inc. and LBC Express Holdings Inc.
this week
SHARE prices may continue its range-bound trading as investors would monitor the US Federal Reserve’s first policy meeting later in the week.
“In particular, investors are expected to watch out for the Fed’s policy move as well as its outlook on its policy. An aggressive increase in rates and a hawkish outlook may put downward pressure on the bourse,” Tantiangco said. “Next week, investors may also look towards the S&P Global Philippines Manufacturing PMI for clues on the local economy’s health.”
Meanwhile, broker 2Tradeasia said the surprise GDP growth in the fourth quarter, could also imply that some inflation has crept in and shrugged off the US Fed’s rate hike last year.
“This oscillation is likely going to keep prices in risk assets range-bound until after the rate decision,” it said.
It said to expect some selling pressure during intraday trades as some investors may take this window to cash out.
The local market’s 10-day exponential moving average is seen as its immediate support at 6,900, and its resistance remains at the 7,000 to 7,100 range.
stock Picks
BROKER Regina Capital Development Corp. advised to buy the stock of telecom giant PLDT Inc. (PSE: TEL) as its price recovery looks promising, based on its technical analysis.
“It’s forming a very obvious upward trend channel following its December deep dive to the likes of P1,200. Notably, TEL has managed to fully fill that gap down and is slowly but surely posting higher lows. Indicators are showing increasing buying pressure with relatively low volatility. All things considered, TEL is likely to sustain this uptrend for the whole week,” it said. PLDT’S share price closed last week at P1,454 apiece. Meanwhile, the broker advised investors to trade the range on the stock of Globe Telecom Inc. as its price is still stuck in consolidation.
“It is one of the few index heavyweights that are still trading below all major moving averages, effectively underperforming against the market. Indicators are more or less neutral,” the broker said.
Its technical readings point that Globe won’t breakout anytime soon, but there could still be a play here. Globe’s share price is bouncing back and forth between a strict price range at this point at P2,030 to P2,190, perfect for range-traders.
Globe’s shares closed last Friday at P2,152 apiece.