Stocks are expected to move sideways this week, with the benchmark Philippine Stock Exchange index moving within a narrow range, as analysts expect more volatility in the market.
Regina Capital and Development Corp. managing director Luis Limlingan said he expected the index to trade between 6,690 and 6,910 points, with technical indicators showing possible extended market correction to as low as 6,600.
“Strategy for the week remains to trade the range as high volatility readings allow quick intra-day trades between support and resistance,” Limlingan said.
F. Yap Securities investment analyst Jason Escartin said last-minute window dressing could boost trading in the last trading days of the year.
Escartin said an overwhelming number of stocks were trading below their 200-day volume weighted moving average, suggesting that the underlying sentiment might be bearish going to 2016.
The PSEi last week gained 1.96 percent to close at 6,867.07, while the broader all-share index advanced 1.18 percent to 3,940.88.
BPI Asset Management said the local equities market rallied last week, tracking gains from regional markets, as the US Federal Reserve finally hiked its interest rates.
Except for the mining and oil index which declined 3.01 percent, all major subindices ended in the green led by holding firms (up 2.74 percent), industrial (1.43 percent), financials (1.33 percent), services (0.76 percent) and property (0.21 percent).
Foreign investors were net sellers last week by P1.67 billion, as total overseas selling reached P16.3 billion while overseas buying amounted to P14.72 billion.
Last week’s top gainer was Ionics Inc., which climbed 27.4 percent to P2.74. The company last week announced that unit Ionics EMS teamed up with technology giant IBM.
Other weekly gainers were D&L Industries Inc., which gained 14.6 percent to P9.15 and Roxas and Company Inc. which rose 13.6 percent to P2.54.
Heavy losers last week were Anchor Land Holdings Inc., which lost 16.5 percent to P6.01; Italpinas Development Corp., which went down by 14.8 percent to 3.10; and Lepanto Consolidated Mining Co “A” shares, which dropped 11.1 percent to P0.168.
