Connect with us

Hi, what are you looking for?

Economy

Shares to move sideways ahead of Q2 earnings

PHILIPPINE SHARES are expected to trade sideways this week as investors await companies’ earnings reports for the second quarter (Q2)  and as the country continues its coronavirus disease 2019 (COVID-19) vaccination program.

Bargain hunting is also expected in the coming days following the heavy selling activity seen last week.

The bellwether Philippine Stock Exchange index (PSEi) declined by 90.07 points or 1.3% to close at 6,834.92 on Friday, while the broader all shares index lost 40.12 points or 0.93% to 4,234.54.

Week on week, the index shed 167.34 points from its 4,234.54 finish on July 2.

“The week started on a good note as investors bought shares ahead of the release of the country’s latest inflation data. However, the bourse trended lower due to a lack of fresh positive catalysts in the local scene,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message on Saturday. “Losses were tempered by last-minute bargain hunters last Friday.”

“The market ended lower for the week and has been in the red for the past four sessions amid recovery jitters,” AB Capital Securities, Inc. Junior Equity Analyst Lance U. Soledad said in a separate Viber message on Friday.

“Negative news [last] week include reports that some LGUs (local government units) suspended first dose vaccinations due to supply problems, as well as concerns over new COVID-19 variants,” he added.

The Health department said on Friday that as of July 8, around 3.2 million Filipinos have been fully vaccinated against the disease or 4.53% of the country’s population. Over 12.70 million jabs have been administered so far.

The Philippines received COVID-19 jabs developed by AstraZeneca Plc last week. Japan’s donation of one million doses arrived on Thursday, while 2.028 million vaccines arrived from the World Health Organization’s COVAX facility on Friday.

Meanwhile, 132,200 Sputnik V vaccines from Russia’s Gamaleya National Research Center of Epidemiology and Microbiology arrived on Friday night and 37,800 more doses arrived on Saturday evening.

“Once vaccinations resume with the recent arrival of supply…then sentiment will improve,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message on Friday.

Investors are also expected to pick up bargains this week.

“As we march on with July, bargain hunters might come in to pick up heavily battered shares from the selling activity experienced last week,” Timson Securities’ Mr. Pangan said.

He expects the PSEi to trade between 6,800 to 7,060, while AB Capital Securities’ Mr. Soledad placed the market’s resistance level at 7,000.

“We expect sideways trading for now as investors await second quarter earnings season,” Mr. Soledad said. — Keren Concepcion G. Valmonte

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!

Latest

Economy

Manila and nearby cities would go back to the strictest lockdown level from Aug. 6 to 20 amid a fresh surge in coronavirus infections...

Economy

The Philippine central bank will keep a supportive monetary policy amid a slower-than-anticipated economic recovery, its governor said on Friday.  “High-frequency indicators suggest that...

Economy

The Philippine central bank raised P100 billion on Friday as it fully awarded its short-term securities, with yields rising due to concerns about a...

Economy

The Securities and Exchange Commission (SEC) on Friday launched a new office under its Corporate Governance and Finance Department (CGFD) that will focus on...

Economy

Consumer foods maker Universal Robina Corp. said on Friday that its snacks and biscuits joint venture based in Australia and New Zealand is to...

Economy

PHILEX MINING Corp. reported an 86% increase in its second-quarter net income to P599.53 million on the back of sustained levels of metal output...

You May Also Like

Investing

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

Investing

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

Economy

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...

Economy

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: SmartRetirementReport.com, 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!