Stock market outlook – BusinessMirror


Last week

Stock prices rose last week as the country’s third-quarter GDP release came in better than expected and more subdued inflation in the United States boosted sentiment.

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

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

Trade, however, was still slow with a daily average valued at 4.54 billion pesos.

Foreign investors, who captured 43% of transactions, were net buyers at 2.1 billion pesos.

All the other sub-indices finished in the green, with the exception of the Mining and Oil index which lost 290.62 points to close at 9,658.55 points. The broader All Stocks index rose 55.19 to 3,328.89, the Financials index rose 11.36 to 1,614.35, the Industrials index rose 106.41 to 9,114 .97, the holding companies index climbed from 12.52 to 5,952.58, the real estate index jumped from 179.10 to 2,782.73 and the services index rose by 1 .20 to 9,114.97. 1,607.80

For the week, winners led losers 123 to 89 and 22 stocks remained unchanged.

The main winners 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.

The main 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

Stock prices may continue their ascent this week, after previous positive developments.

“So far, we see the bullish case for the local market being underpinned by the following positive factors: strong Philippines economic growth in Q3, strong corporate results in Q3, strengthening Peso ( against the dollar) and slowing US inflation. The local stock market may extend its ascent due to the above-mentioned factors,” said Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financials Inc..

He said investors should pay attention to the upcoming Bangko Sentral ng Pilipinas meeting this week.

“With a 75 basis point rate hike already forecast, investors should look for clues on our outlook for inflation and monetary policy. Next week, investors could watch our OFW remittances and data. position of the balance of payments for indices.

Broker 2TradeAsia said the earnings report for listed companies will continue to support the bullish market outlook over the medium term, at least for some sectors such as banking, gaming and airlines.

“Keep in mind that in 2023, global capital will be more selective and return-oriented. Lower inflation, accommodative monetary policy, among others, will bring liquidity to life, but will always come down to the quality of assets, especially as the discussion heads into the 2023 recession,” he said.

Local market support is still seen in the 6000-6100 range, while immediate resistance is seen at the 6400 level.

Choice of actions

The broker Regina Capital Development Corp. advised investors to buy when the support price holds on the stock of SM Investments Corp. (SMIC) after suffering a strong correction after its rally of the previous weeks.

“Support remains intact in the P764.50 area. However, should this break, traders should be prepared to cut their losses,” the broker said.

SMIC shares were last traded on Friday and closed at P825 apiece.

Meanwhile, the broker gave the same recommendation on shares of DMCI Holdings Inc. after its shares plummeted for two straight weeks. Last week was its biggest drop as it fell over 8% combined with heavy volume.

“Pessimism has taken over the stock price and the bears have gone on a selling frenzy. Now that it is already in an oversold state, investors can buy on areas of support when these key levels hold,” said he said, giving a support price on the stock at P8.30 per share.

DMCI shares closed last week at P8.70 each.


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