Flat trading likely; eyes on earnings of blue chips

Share prices are expected to move sideways this week after the market rallied to near the 8,600-point level in the past week, with investors focusing on third-quarter earnings report of listed companies.

A slew of companies including market heavyweights Ayala Group, Aboitiz Group, San Miguel Corp. and PLDT Inc. are scheduled to release their third quarter financial reports this week ahead of the five-day holiday next week to give way to the Asean leaders’ meeting.

Aside from the third-quarter financial performance, investors are expected to look at spending plans of firms for next year and earnings outlook or earnings guidance for 2017 and 2018.

BPI Asset Management said foreign investors, after taking quick profit following the market’s new record close last week, are slowly coming back, with overseas turning out be net buyers in the last two trading days.

Economic Planning Secretary Ernesto Pernia last week said the domestic economy likely grew between 6.3 percent and 7.3 percent in the third quarter, 

Pernia, who is also National Economic and Development Authority director-general, said the growth might have been driven by strong consumption and recovering exports.

The 30-company PSEi last week advanced by 0.97 percent to 8,376.13 on a shortened trading week, while the broader All Shares Index climbed 0.85 percent to 4,898.90.

The index hit a new all time high of 8,605.15 on Thursday before succumbing to profit taking on Friday.

Among the sub-indices, the industrial posted the biggest gain which rose 2.83 percent, followed by holding firms and financial which gained 1.1 percent and 0.89 percent, respectively.

The Mining and oil index advanced 0.79 percent last week on rising metal prices in the world market.

Services, meanwhile, declined 0.59 percent while industrial decreased 0.50 percent.

Foreign investors were net buyers for the week by P1.22 billion. The average daily value traded stood at P8.6 billion from last week’s average of P7.2 billion.

Weekly top price gainer were Megaworld Corp., which advanced 6 percent to P5.64; GT Capital Holdings Inc., which rose 5.3 percent to P1,200; and SM Prime Holdings Inc., which increased 4.7 percent to P37.40.

Weekly top price losers were LT Group Inc., which declined 5.3 percent to P17; Aboitiz Equity Ventures Inc., which dropped 3.8 percent to P72; and Semirara Mining and Power Corp., which fell 2.9 percent to P41.30.

Wall Street stocks finished at fresh all-time highs Friday, with technology shares especially sky-bound following a solid US jobs report and strong Apple earnings.

All three US indices ended at records, with the Nasdaq gaining the most and the Dow notching its 56th record high of 2017 as third-quarter earnings season entered the home stretch. With AFP

“On the earnings front, the numbers continued to shine like a new Apple,” said Howard Silverblatt, senior index analyst at S&P Dow Indices, adding that more companies than usual have bested expectations.

“The quarter is on the road to post a new earnings record.” With AFP

Topics: Stocks
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