THIRD-QUARTER earnings results of local gaming and oil companies will be the main driver of the stock market this week.
AB Capital Securities Inc. said in a weekly market report that the Philippine Stock Exchange index’s (PSEi) movement this week is dependent on the third-quarter results of gaming and oil-related companies.
“We still see local earnings results as the main driver of share performance similar to the previous weeks. Sectors to look out for include gaming and oil-dependent companies,” AB Capital said.
“For gaming, investors will need to watch out for Traveller International’s [Hotel Group Inc.] earnings results to get an overall picture of the country’s casino industry. Despite Bloomberry Resorts Corp. recording record revenues, fears are mounting that the casino industry is not growing faster than expected to support three players—Travellers, Bloomberry and Premium Leisure Corp.,” it said.
“Meanwhile, oil-dependent companies such as Philex Petroleum Philippines Inc. and Petron Corp. are expected to post lower margins as they write off inventories due to declining crude prices,” it added.
AB Capital said that the bellwether index is still in a “near-term bull trend” since October 14, but added that if the market falls through support levels at 7,200 to 7,160 points, it could go down to as low as 7,000 points.
But should the market go up to as high s 7,235 to 7,330, investors may find this as exit points and sell to cash in on gains, it said.
BPI Asset Management, on the other hand, said in a weekly outlook that the market is projected to be influenced with foreign outflows this week as the market “encounters tough resistance toward its all-time highs.”
“Residual corporate earnings are expected to continue to be the primary market drivers next week,” BPI said.
“We expect the local equities market to trade between 7,070 and 7,373,” it added.
On Friday, the main index ended down 30.91 points or 0.43 percent at 7,205.72, while the broader All Shares index was also down 18.11 points or 0.42 percent at 4,243.68.