The Philippine benchmark stock index was dragged sideways for the second day in a row, ending virtually flat in the absence of market-moving news in the past few days.
The benchmark Philippine Stock Exchange index (PSEi) eased downward by just 0.005-percent, losing 0.34 points to close out the week at 6,889.55. The wider All Shares index, by contrast, recovered a little, closing up by 0.11 percent or 4.71 points to 4,129.89.
“Today, the market is moving sideways. The market is weak, and there is no significant market-moving news domestically,” Joyce Anne Ramos, equity analyst at AB Capital Securities, Inc., said.
“Right now, investors and fund managers are in the ‘wait-and-see’. We’re still waiting for corporate earnings,” she added.
Besides the corporate earnings, Ramos said there would be no movement for the next few days because of the July 29 holiday, and investors’ waiting for reactions to the State of the Nation Address of President Aquino on Monday.
Corporate earnings are due in August, but the month is traditionally a “ghost month,” which slows and softens the market.
If the worst scenario happens—bad corporate earnings in the midst of the Ghost Month—Ramos said the market may go down to 6,765 rather than staying in its current range of 6,800 to 6,900.
“But most likely for the following days, the market will be suspended in sideways movement,” she said.
The individual sector indices were mixed on Friday, with services adding 12.10 points or 0.58 percent to 2,104.44, industrials gaining 0.34 percent or 35.53 points to 10,511.19, and holding firms slightly ahead 0.10 percent or 6.02 points to close at 6,207.67. The property sector skid by 0.76 percent or 19.97 points to drop to 2,596.97, followed by financials which were down 0.26 percent or 4.31 points to 1,635.08, while mining and oil erased 27.63 points or 0.16 percent to finish at 16,821.64.
The most active decliners on the day were Metropolitan Bank and Trust Company (down 1.15 percent or P1 to close at P86.30), BDO Unibank Inc. (off 1.10 percent or P1 to P90) and Ayala Corp. (down 0.61 percent or P4 to P652). Among gainers, Alliance Global Group Inc. added P0.15 (up 0.56 percent to P26.85), PLDT (up 0.33 percent or P10 to P3,062), and AM Investments Corp. (up 0.06 percent or P0.50 to P790.50).
The 930 million shares with a market value of P6.8 billion changed hands on Friday, with losers outnumbering gainers 84 to 78. 64 issues remained unchanged.
The PSEi was also flat on Thursday, slipping 0.04 percent slip or 3.03 points to close at 6,889.89, while the wider All Shares index also slid by 0.01 percent or 0.51 points to 4,125.18.