Stock Market

Stock-Market Outlook – BusinessMirror

Last week

Share prices gained last week as the country’s better-than-expected third quarter GDP print and tamer inflation in the United States boosted sentiment.

The benchmark Philippine Stock Exchange index gained 101.24 points to close at 6,286.77 points.

The main index was down for three consecutive days since Tuesday, but a late surge on Friday buoyed the market.

Trading, however, was still sluggish with daily average valued at P4.54 billion.

Foreign investors, who cornered 43 percent of the trades, were net buyers at P2.1 billion.

All other sub-indices ended in the green, with the exception of the Mining and Oil index that shed 290.62 points to close at 9,658.55 points. The broader All Shares index was up 55.19 to 3,328.89, the Financials index rose 11.36 to 1,614.35, the Industrial index gained 106.41 to 9,114.97, the Holding Firms index climbed 12.52 to 5,952.58, the Property index surged 179.10 to 2,782.73 and the Services index increased 1.20 to 1,607.80

For the week, gainers led losers 123 to 89 and 22 shares were unchanged.

Top gainers were MJC Investments Corp., Dizon Copper-Silver Mines Inc., Easycall Communications Philippines Inc., DoubleDragon Corp., San Miguel Food and Beverage Inc., 2Go Group Inc. and Golden MV Holdings Inc.

Top losers, meanwhile, were Leisure and Resorts World Corp., Harbor Star Shipping Services Inc., LFM Properties Corp., Top Frontier Investment Holdings Inc., Asiabest Group International Inc., Far Eastern University Inc. and Altus Property Ventures Inc.

This week

Share prices may continue its upward swing this week, following the previous positive developments.

“So far, we’re seeing the bullish case for the local market building up on the back of the following positive factors: the Philippines’s strong third quarter economic growth, robust third quarter corporate results, the peso’s strengthening (against the dollar) and the slowdown in US inflation. The local bourse may extend its climb on the back of the aforementioned factors,” Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financials Inc., said.

He said investors are expected to watch out for the Bangko Sentral ng Pilipinas’ upcoming meeting this week.

“While a 75 basis point rate hike is already anticipated, investors are expected to look out for clues on our inflation and monetary policy outlook. Next week, investors may watch out for our OFW remittance and balance of payment position data for cues.”

Broker 2TradeAsia said the earnings report of listed firms will continue to support the upbeat outlook for the market in the medium term, at least for certain sectors such as banks, gaming and airlines.

“Keep in mind that heading 2023, global capital will be more selective and yield driven. Lower inflation, dovish monetary policy, among others will bring liquidity to life, but will still ultimately boil down to asset quality, especially when the discussion moves towards recessionary 2023,” it said.

The local market’s support is still seen at the 6,000 to 6,100 range, while immediate resistance is seen at the 6,400 level.

Stock picks

Broker Regina Capital Development Corp. advised investors to buy when support price holds on the stock of SM Investments Corp. (SMIC) after it underwent a steep correction after its rally from the previous weeks.

“The support remains intact at the P764.50 area. However, should this break, traders must be prepared to cut their losses,” the broker said.

SMIC shares was last traded Friday and closed at P825 apiece.

Meanwhile, the broker gave the same recommendation on the stock of DMCI Holdings Inc. after its shares have been on a waterfall move for two consecutive weeks. Last week has been its biggest drawdown as it fell by over 8 percent combined with a big volume.

“Pessimism took over the stock and bears went on a selling spree. Now that it is already in the oversold condition, investors may buy on support areas when these key levels hold,” it said, giving a support price on the stock at P8.30 per share.

DMCI shares closed last week at P8.70 apiece.

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