Stocks are expected to move sideways this week as investors assess the reopening of the domestic economy after May 15.
Analysts said that after the government reported a 0.2-percent contraction of the gross domestic product in the first quarter, investors shifted focus on long-term effects of the coronavirus pandemic on the economy.
“The week’s close at 5,621.94 highlights the risk-on theme remains fragile. Bias in the near-term tilts to the downside and may see more price action towards the retest of the 5,000 levels in the near-term,” BDO Unibank Inc. chief investment strategist Jonathan Ravelas said.
Immediate support and resistance are seen at 5,500 and 5,900 levels, respectively.
The Philippine Stock Exchange index lost 1.38 percent last week to close at 5,621.94 on May 8 as the government reported that the first-quarter gross domestic product contracted by 0.2 percent, marking the first negative growth since 1998.
Except for the property sub-index which climbed by 0.45 percent, other sub-indices ended in the red led by mining and oil (-3.99 percent), services (-3.72 percent), financials (-3.41 percent), industrial (1.98 percent) and holding firms (-0.22 percent).
Foreign investors were net sellers last week by P2.46 billion even as the average daily turnover improved to P5.6 billion from the previous week’s average of P4.9 billion.
Top gainers last week were Ayala Corp. which surged 21 percent to P704, Manila Water Co Inc. which climbed by 19.3 percent to P12.70 and GMA Network Inc. which advanced by 6.16 percent to P5.17.
Heavy losers were GT Capital Holdings Inc. which declined by 9.01 percent to P412, Cebu Air Inc. which dropped by 7.9 percent to P44.50 and Aboitiz Equity Ventures Inc. which dipped 7.7 percent to P38.30.
