PSEi seen consolidating below 6,400
Philippine stocks may stay range-bound this week as investors adopt a more defensive stance ahead of key macro catalysts, including the Bangko Sentral ng Pilipinas’ (BSP) February policy meeting, according to brokerage 2TradeAsia.
For Michael Ricafort, chief economist at Rizal Commercial Banking Corp., the biggest local market catalyst this week is a possible 25-basis-point rate cut at the Monetary Board’s meeting on Feb. 19.
2TradeAsia noted that the Philippine Stock Exchange Index last week slipped back into profit-taking mode after a midweek rally.
After briefly moving above the 6,500 level, the benchmark index on Friday closed 16 notches lower at 6,384, down 0.1 percent week-on-week.
Average turnover climbed to P7.61 billion, up 5.84 percent, while average daily turnover rose 33.6 percent to P8.35 billion.
Net foreign buying was nearly flat at P260 million, down 1.17 percent. Losers edged out gainers, 102 to 94.
Sectoral performance was mixed. Mining and oil surged 5.84 percent week-on-week, buoyed by gains in nickel and precious metals plays. Industrials rose 1.14 percent.
On the other hand, property declined 0.68 percent. Financials and services slipped 0.14 percent and 0.1 percent, respectively.
Among individual counters, Converge ICT Solutions Inc., Puregold Price Club, Inc. and Jollibee Foods Corp. led weekly gainers.
San Miguel Corp., DigiPlus Interactive Corp. and BDO Unibank were among the laggards.
2TradeAsia said global macro sentiment remains clouded by diverging central bank signals.
