Bargain hunters can help Philippine stocks were boosted this week by the release of key economic data, including reports on October inflation and third-quarter gross domestic product (GDP).
On October 30, the benchmark Philippine Stock Exchange Index (PSEI) fell 0.57% or 34.09 points to close at 5,929.68, while the broader all-share index fell 0.33% or 11.93 points to close at 3,593.28. Philippine financial markets were closed for a holiday on October 31.
Week to week, the PSEi fell 58.34 points from the closing level of 5,988.02 on October 24.
The bellwether index also remained down this month, falling 23.78 points from its September 30 close of 5,953.46.
Philstocks Financial, Inc. Research Manager Japhet Louis O. “Data shows that the local market has been bearish for October,” Tantiangco said in a Viber message. “Trade has been sluggish, with net value turnover averaging P4.90 billion per day for the month, lower than the year-to-date average of P5.85 billion. Foreigners have been net sellers for the month, with net outflows of P5.85 billion.”
“This can be mainly attributed to the negative investor sentiment brought about by infrastructure-related corruption issues in the Philippines and their impact on the country's economic outlook. The decline of the peso against the US dollar also added to the market's poor performance in October,” he said.
Louis A., head of sales for Regina Capital Development Corp. Limlingen said the market showed “some resilience” despite volatile trading last month, mainly supported by strong corporate results.
“Power and mining sectors emerged as the frontrunners, with some notable stocks rising on recent earnings reports and project developments amid tariff hikes and trade disruptions. Property sectors saw some progress on the residential, retail and leasing front, along with a gradual improvement in international tourism rates,” he said in a Viber message.
For this week, Mr Tantiangco said bargain hunting could push the PSEI higher after two weeks of market decline.
“However, for the general direction of the market, we expect investors to take cues from our upcoming macroeconomic data. Investors are expected to look towards our Q3 GDP data to know how the local economy has been. Growth slower than the government's 5.5%-6.5% target for the year could weigh on the market,” he said.
He said inflation and manufacturing activity data, as well as the peso's movements against the dollar, could provide some clues.
“Bearish sentiment remains dominant in the local market as downside risks continue to rise while positive catalysts are yet to be seen. Investor confidence remains weak.”
Mr Tantiangco placed PSEI's key support at 5,800 and key resistance at 6,000.
Meanwhile, Mr Limlingan said the release of financial results from more listed companies could also provide a catalyst. , Alexandria Grace C. Magno
