• PH SHARES WEEKLY OUTLOOK

    Earnings, overseas data to drive trading

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    Investors will be looking at third quarter earnings results and fresh news from China and the United States this week, analysts said, with trading at the Philippine Stock Exchange (PSE) likely to be range-bound.

    “This week, we expect the market to continue to be guided by the earnings results of the local corporates. Key economic data … both local and [from]the US may also drive the direction of the market,” BPI Asset Management said in a weekly outlook.

    Angelie T. Wee of RCBC Securities Inc. echoed this, also noting that company earnings have been mostly in line with consensus forecasts.

    “The market has recently reversed its course from last week’s strong performance. Some companies have started releasing third quarter earnings, with most companies coming in line with our forecasts. Earnings results to be released in the coming weeks will likely dictate the market’s direction,” Wee said.

    Among those expected to release nine-month results this week are Philippine Long Distance Telephone Company, International Container Terminal Services, Inc., GMA Network, Inc., and Manila Water Company Inc.

    Jason Escartin of F. Yap Securities Inc., meanwhile, said investors should “expect volatility to prevail”, noting the scheduled release of China manufacturing data and last week’s news of a possible US interest rate hike in December.

    “For the nine months of 2015 earnings call and 2016 outlook, company-specific plays may be seen,” he said.

    “Large-cap PLDT will be releasing nine months data plus updates on its digitization effort, among others. Overall, traders will be heeding … pluses that could support fourth quarter capital gains, aside from validation of 2016 growth forecasts,” Escartin added.

    AB Capital Securities Inc., meanwhile, said that given its inability to hold at 7,200 and breach 7,400, the bellwether PSE index (PSEi) would exhibit a “neutral-bearish” trend this week.

    “The index failed to breach above the 7,400 technical resistance level and retreated on Thursday and Friday. With this failure, the index is now set to test the support at 7,070 and 7,000,” AB Capital said.

    “The initial and secondary resistance levels can be found at 7,200 and 7,400, respectively, while the initial and secondary support levels can be found at 7,070 and 7,000, respectively,” it added.

    On Friday, the PSEi declined by 0.77 percent or 54.99 points to close at 7,134.26, while the wider All Shares index decreased by 0.58 percent or 24.11 points to 4,119.28.

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