Share prices are expected to move sideways this week, as plunging crude oil prices and anxiety over China’s economic slowdown continue to heighten investors’ risk aversion.
BDO Unibank chief investment strategist Jonathan Ravelas, however, said investors might get a respite from the market slide, with the release of the Philippines gross domestic product data later this week.
“BDO estimates a 6.3-percent [growth] for the fourth quarter, bringing the full-year GDP growth to 5.7 percent,” Ravelas said.
Ravelas said this week he expected the stock market index to trade within a range of 6,000 to 6,300 points. A break below the 6,000-point level could call for further losses to as low as 5,700, he said.
F. Yap Securities investment analyst Jason Escartin said a better-than-expected GDP figure could douse off the overall pessimism.
“With the country still considered as one of the fastest-growing economies in the region, better-than-expected results could douse off part of the pessimism, but there are no clear signals in place yet to cap the ‘global volatility overhang’,” Escartin said.
The Philippine Stock Exchange index, the 30-company benchmark, closed lower by 3.7 percent last week to settle at 6,208.05 on Jan. 22, while the broader all-share index declined 3.3 percent to 3,577.92. The benchmark index was down 10.7 percent since the start of the year.
Except for the services sector, which gained 1.3 percent last week, all major sub-indices ended in the red led by holding firms (-6.1 percent), property (-6.1 percent), mining and oil (-4.2 percent), industrial (-2.3 percent) and financials (1.6 percent).
Foreign investors were net sellers by P2.7 billion last week, as total overseas selling reached P16.47 billion while foreign buying amounted to only P13.74 billion.
Top gainers last week were tycoon Lucio Co-owned Da Vinci Capital Holdings Inc., which advanced 30 percent to P2.77; Premium Leisure Corp., which climbed 24.7 percent to P0.58; and EEI Corp., which jumped 15 percent to P6.13.
Heavy losers were property developer Italpinas Development Corp., which dipped 22.3 percent to P2.02; LBC Express Holdings which dropped 16.4 percent to P7.10; and Metro Retail Stores Group., which lost 16.2 percent to P2.95.
