Share prices gained for the third straight week, with the main index returning to the 6,400-point level, on waning concerns over the United States Federal Reserve’s policy outlook following signs that price pressures in the US are easing.
The benchmark Philippine Stock Exchange index gained 117.42 points to close at 6,404.11 points.
The biggest gains of the market came during the last three days of trading, with Friday’s rise reaching more than 1 percent.
Volume of trade, however, was still anemic, averaging at just P4.67 billion for the week. Foreign investors, who cornered just 38 percent of the trades, were net buyers at P889.66 million.
All other sub-indices managed to close in the green. The broader All Shares index gained 50.73 points to close at 3,444.07 points, the Financials index rose 25.11 to 1,941.68, the Industrial index was up by a mere 2.08 to 8,380.30, the Holding Firms index climbed 98.56 to 4,489.38, the Property index surged 62.85 to 1,955.81, the Services index soared 72.13 to 3,492.84 and the Mining and Oil index added 62.53 to 14,612.23.
For the week, gainers edged losers 111 to 104 and 28 shares were unchanged.
Top gainers were Rockwell Land Corp., Asiabest Group International Inc., Bloomberry Resorts Corp., Millennium Global Holdings Inc., First Gen Corp., Manila Broadcasting Co. and Pacifica Holdings Inc.
Top losers, meanwhile, were Primex Corp., Philippine Estates Corp., Cirtek Holdings Philippines Corp., Roxas and Co. Inc., Metro Alliance Holdings and Equities Corp. B shares, LBC Express Holdings Inc. and Acesite (Phils.) Hotel Corp.
This week
Share prices may go down this week mainly on selling pressures as the US-Iran war is still regarded as the biggest downside risk.
Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financials Inc. said the re-escalation of tensions between the two countries, which affects passage at the Strait of Hormuz, is pushing global oil prices higher again threatening the Philippines’s inflation outlook.
Currently, Brent crude is trading above $80 per barrel again. Local fuel prices are expected to see an increase next week, he said.
For the upward swing of the market to be sustained, strong catalysts must be seen moving, he added.
‘Without such, and with the headwinds at play, we may see a pull back for the local bourse (this) week. For a possible impetus, the market is expected to look towards second quarter corporate results.’
Broker 2TradeAsia said to expect volatility in forex and crude oil pricing, with the latest US-Iran tiff.
‘The DOE [Department of Energy] has flagged big jump in pump prices this week. NFA [National Food Authority] will raise palay prices to P21/kilo, or 24 percent from P17 per kilo, for incoming harvest season in September. Effectivity of NCR [National Capital Region] daily minimum wage hike of P60 percent day will start on 25 July 2026 to P755 percent day, up 8.6 percent versus old rate,’ it said.
‘While disinflation in gas and energy supported this view, it primarily reflects a temporary lag in energy transmission, capturing the lower oil prices of late May and early June. We feel this reprieve will be brief.’
Tantiangco said the 6,400-point line of the main index may be retested this week.
‘If the market is able to hold ground above the said line, its next resistance is seen at 6,550. The market’s 50-day and 200-day exponential moving averages are about to form a ‘Golden Cross.”
Stock picks
RCBC Securities Inc. gave a buy rating on Enrique K. Razon Jr.’s Bloomberry Resorts Corp., raising its target price by 5 percent to P2.40 per share driven by high conviction of the company in its online platform.
The said online gambling push, has placed its stock price to climb to P2.31.
‘Unlike the VIP-focused Solaire Online, FUNaloMAX targets the highly scalable local mass market. While front-loaded marketing costs will pressure second-quarter margins, this new platform introduces a vital, high-volume revenue stream that structurally diversifies BLOOM’s top line away from its core land-based casinos, which are currently being weighed down by the Middle East geopolitical tension.’
Bloomberry’s shares closed last week at P2.25 apiece.
Meanwhile, the broker gave a buy rating on Bank of the Philippine Islands, despite the lender reporting that its first-half income fell to P32.8 billion.
Total revenues reached P104 billion, up 12 percent year-on-year, supported by net interest income growth of 12.5 percent and a 12.1 percent non-interest income expansion. Non-performing ratio was flat quarter-on-quarter at 2.42 percent while NPL coverage ratio grew to 92.98 percent.
It gave a target price on the stock at P136.
BPI shares closed Friday at P104 apiece.