Connect with us

Hi, what are you looking for?


Stocks to move sideways ahead of GDP report

SHARES are expected to move sideways this trading week as investors await the release of 2020 gross domestic product (GDP) data on Thursday.

The bellwether Philippine Stock Exchange index (PSEi) ended at 7,045.83 on Friday, lower by 94.46 points or 1.32% from the previous trading day.

Week on week, the main index retreated 192.63 points or 2.66%, extending its decline.

The market’s average value turnover for the week rose 21% to P12.68 billion, while average net foreign selling expanded to P964.48 million.

Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan said in a mobile phone message that the market may move sideways this week as investors wait for the release of data on the economy’s performance last year.

He said trading this week will also depend on the ongoing spread of the coronavirus disease 2019 (COVID-19) in the country.

“Over the longer term perspective, investors continue to assess the coronavirus vaccine rollout especially amid the increase in cases in some provinces of the country,” Mr. Pangan said.

Recent bulletins from the Department of Health showed some of the provinces that posted the most number of new COVID-19 cases include Davao City, Isabela, Bulacan, Rizal, Cebu City, and Mountain Province.

Online brokerage said in a market note that the GDP data will push anticipation-driven volatility in the next few sessions.

“The economic team expects -5.5%; World Bank at -8.15%, while the Bangko Sentral ng Pilipinas (BSP) expects a more conservative -9%,” said.

“While negative figures may have already been baked-in in share price, any downside surprise will be detrimental to already directionless sentiment, particularly for cyclicals and recovery-correlated shares,” it added.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said the market is seen to decline amid waning optimism and amid developments regarding the new COVID-19 variant.

“The further spread of the new strain in the country is expected to weigh on market sentiment since it poses the risk of returning to the more stringent social restriction measures, which is seen to derail our economic recovery,” Mr. Tantiangco said in a mobile phone message. said the market’s immediate support will be at 7,000, secondary at 6,850, and resistance at around 7,300 to 7,350.

“7,000 remains the support area that we have to watch, with 6,800 being the next major support level. 7,300 on the other hand is where resistance may be pegged at,” Timson Securities’ Mr. Pangan said.

“The PSEi may test its 50-day exponential moving average, a dynamic support, which is currently at 7,005.71. If it falls below that line, the market’s next support is seen at 6,900. Resistance on the other hand is seen at the 7,150-7,200 range,” Philstocks Financial’s Mr. Tantiangco said. — Revin Mikhael D. Ochave

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



Preliminary results of Philippine Statistics Authority’s latest Labor Force Survey showed there were around 3.764 million unemployed Filipinos in June, inching up from 3.730...


THE PHILIPPINE economy’s recovery will depend on how quickly business confidence is restored, which will in turn boost private sector investments, Moody’s Investors Service...


INVESTMENT PLEDGES approved by the Philippine Economic Zone Authority (PEZA) climbed by 8.5% in the first half after coming off a low base last...


CHINA LIANHE Credit Rating Co. maintained its “AAA” credit rating for the Philippines with a “stable” outlook, as it expects economic recovery to begin...


AYALA Land, Inc. (ALI) on Tuesday said it generated P3.3 billion in the second quarter, over 16 times the P426-million income it logged year...


SOLAIRE Resort & Casino operator Bloomberry Resorts Corp. finished the quarter with a “respectable” performance after trimming its consolidated net loss to P1.2 billion,...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...


US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...


THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!