LAST WEEK
SHARE prices closed higher last week as investors ignored the attack that happened in Resorts World Manila (RWM) at the end of an eventful week for the market.
The benchmark Philippine Stock Exchange index gained 40.17 points to end the week at 7,907.66 points.
The main index was generally up after the initial public offerings of Eagle Cement Corp. and Cebu Landmasters Inc. buoyed the market. Share price of both stocks ended higher during the week.
The main index even reached as high as 8,002.32 points last Friday, the day when the attack on RWM happened, before some of the investors locked in on their gains.
“This week’s session saw the index make another attempt to breach the 8,000 barrier. Though a sell down immediately followed from tapping the resistance, a temporary support was formed at 7,970 in today’s morning session—in what might appear a possible attempt to rebound toward breaking the upper limit,” broker Regina Capital and Development Corp. said.
Other subindices ended mixed. The broader All Shares index gained 26.25 points to close at 4,689.88; the Financials index rose 8.36 to 1,945.7; the Holding Firms index fell 57.03 to 7,847.12; the Industrial index declined 8.2 to 11,097.75; the Mining and Oil index was down 151.49 to 12,419.27; the Property index gained 79.24 to 3,706.34; and the Services index was up 33.41 to 1,717.32.
THIS WEEK
BROKER Regina Capital said the main index is showing signs of potential slowdown this week even as investors are expected to continue to digest the attack at RWM, where dozens were killed and more questions need to be answered.
“A support can be seen forming around 7,811 where 20-day resides. Breaching that, 7,715 is still another strong support formed in May. Meanwhile, the upward limit exists at 7,940. At this point, it might be prudent to enter into the index only upon pullbacks,” the broker said.
It placed resistance level at 8,000 points and support ranged between 7,900 and 7,842.
STOCK PICKS
INVESTORS will likely focus on the stocks of Andrew Tan-owned firms after the attacks in one of its flagship developments last Thursday and Friday last week.
Last Friday, shares of Travellers International Hotel Group Inc., which owns the gambling arm of Tan, including RWM, fell 8 percent, or P0.27 to close at P3.13. It went as low as P3.08 during midday.
Megaworld Corp.’s shares were also down by 3.2 percent last week to close at P4.54 per share, but shares of Global Estates Resorts Inc. and Empire East Land Holdings Inc. were almost unchanged.
Shares of Ayala Land Inc. continues to increase and is seen retesting P39.34, before attempting to breach the resistance of P41 per share.
Regina Capital recommended to buy the stock during pullbacks.
Share price of Ayala Land closed at P81.30 apiece last week.