Last week
Share prices declined, with the main index returning to the 5,600-point level, as the Philippine peso continued to weaken against the dollar due to the volatile geopolitical environment.
The benchmark Philippine Stock Exchange index (PSEi) shed 48.28 points to close at 5,680.35 points.
Trading was volatile during the entire week even after the United States Federal Reserve kept its rates steady, which was expected by the market.
Trading volume was high, reaching an average value of P7.33 billion. Foreign investors, who cornered 42 percent of the trades, were net sellers at P323.93 million.
Sub-indices were down, except for the Industrial index that gained 24.96 points to close at 7,318.17 points.
The broader All Shares index fell 14.87 to 3,178.42, the Financials index declined 12.69 to 1,786.89, the Holding Firms index retreated 22.32 to 4,237.23, the Property index was down 1.20 to 1,795.80, the Services index shed 55.52 to 2,960.63 and the Mining and Oil index plunged 369.29 to 18,191.43.
For the week, decliners edged losers 127 to 75 and 39 shares were unchanged.
Top gainers were Pacifica Holdings Inc., Waterfront Philippines Inc., Alliance Select Foods International Inc., Premiere Horizon Alliance Corp., PH Resorts Group Holdings Inc., Paxys Inc. and Cirtek Holdings Philippines Corp.
Top losers, meanwhile, were Jolliville Holdings Corp., Supercity Realty Development Corp., Anglo Philippine Holdings Corp., NiHAO Mineral Resources International Inc., DMCI Holdings Inc., ENEX Energy Corp. and Rockwell Land Corp.
This week
Share prices may still decline this week, still on the dual risk of rising oil prices and the weakening peso.
It will be a four-day trading week as Monday, November 2 was declared an additional special non-working day for All Souls’ Day.
‘We stay in sit-out mode, continuing our preference towards dollar earners and well-capitalized names, and to avoid rate-sensitive and budget-exposed plays,’ broker 2TradeAsia said.
It added that the decision of the US Fed to keep its rate steady gives the Bangko Sentral ng Pilipinas (BSP) a little breathing room, with the spread not further widening, although the relief may be brief.
The Fed again declined to give clear guidance, and nothing in the statement takes a December hike off the table, the broker noted.
‘We still expect the Fed to tighten on December 9, which keeps the double-tightening scenario in play; recall that the BSP is expected to have its last 2026 hike on December 17, which should limit any rally in rate-sensitive names before year-end.’
Outlook on oil prices is getting worse heading into the holidays with US President Trump recently warning against possible strikes on Iran after the US midterm elections.
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‘The strikes themselves may never happen, but the market does not need them to as the talk alone is enough to keep a risk premium in crude; we thus expect oil to stay elevated through the holidays,’ it said.
That is bad timing for Philippine consumer confidence in fourth quarter which usually supports retail, food and transport, it added.
‘Watch the guidance beats. With most of the market reporting over the next two weeks, we caution that the forward commentary will matter more than the third quarter prints,’ the broker said.
‘We would treat a break below 5,600 (points of the PSEi) as a signal to cut exposure further and would add only on a close above 5,800 that holds after the Fed decision is out.’
Stock picks
Broker Regina Capital Development Corp. gave a trade-the-range rating on the stock of International Container Terminal Services Inc. (ICTSI) as price of the stock remained in consolidation mode.
‘The stock held its floor, with buyers stepping in early and keeping control through the close,’ it said,
‘Momentum indicators have turned slightly positive, with a small green histogram suggesting selling pressure is easing. Directional indicators still favor sellers, and ADX at 28.30 points to a moderate trend rather than a decisive one, consistent with a stock that is consolidating.’
ICTSI shares closed last week at P839 apiece.
Meanwhile, the broker gave the same advise on the stock of Bank of the Philippine Islands after it share price staged a modest bounce off support while remaining below key moving averages.
‘Although price action continues to trade below key moving averages, the support level appears to be holding, making range-trading strategies viable near current levels,’ it said.
Support price on the stock is seen at P96.50 and resistance at P97.
BPI shares closed last week at P94 apiece.