PHILIPPINE stocks are expected to move sideways this week as investors wait for first-quarter earnings results and economic leads.
“The bulls were hailed as the victors in the local bourse as investors digest corporate earnings,” Luis A. Limlingan, head of sales at brokerage Regina Capital Development Corp. said in a Viber message last week.
“Major exchanges in the US traded mixed amid releases of earnings reports,” he said. “Investors also await initial jobless claims and existing home sales.”
The benchmark Philippine Stock Exchange index (PSEi) jumped by 1.15% or 74.09 points to close at 6,520.44 on April 20, while the broader all-share index gained 0.69% or 24.14 points to 3,488.26.
Philippine financial markets were closed on Friday, which was a Muslim holiday.
Week on week, the PSEi increased by 0.59% or 38.53 points.
Local investors might remain cautious as they wait for “positive catalysts,” Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financial, Inc. said in a Viber message.
“Investors are expected to look forward to company reports to see if our country’s corporate sector was able to sustain its strength and momentum despite lingering economic challenges including high inflation and rising interest rates,” Mr. Tantiangco said.
“Optimistic anticipation could be seen in the banking sector following the robust results from BDO Unibank, Inc. and Bank of the Philippine Islands,” he added.
BDO’s attributable net income in the first quarter rose by 40.44% year on year to PHP 16.528 billion, driven by broad-based growth.
BPI’s net income increase by 52% to 12.1 billion due to higher net interest earnings and lower loan loss provisions, it said in a disclosure on Thursday.
“While the market looks poised to head higher in the coming week after Thursday’s positive price action, we remain wary of the 6,600 resistance,” China Bank Securities Corp. Research Director Rastine Mackie D. Mercado said in an e-mail.
Sentiment might remain fragile ahead of local inflation and economic growth data, and policy rulings by the US Federal Reserve and Philippine central bank, he added.
Mr. Tantingco placed PSEi support at 6,400, while Mr. Mercado put it at 6,400 and resistance at 6,600. — By Adrian H. Halili
This article originally appeared on bworldonline.com