Sluggish trading expected this week

MANILA, Philippines — The local stock market will remain lackluster this week as investors look for cues on whether to buy or wait for more catalysts.

Online brokerage 2tradeasia.com expects the Philippine Stock Exchange index to trade between 6,200 and 6,600 this week.

“A break below 6,300 may mean a revisit of the crucial 6,000 level. Note, however, that the recent slide was accompanied by markedly thin participation versus recent corrections in mid-January and early March, especially on the local side – which may imply that amid uncertainties on the ground, some confidence on the second half recovery story is brewing, prompting players to hold,” 2TradeAsia said.

Last week, the PSEi fell 116 points or 1.8 percent to 6,378, with counters closing in the red. Average value turnover also declined to P5.46 billion while net foreign selling was sustained at P880 million.

2TradeAsia said investors would be looking at sector-specific drivers. The mining sector, for instance, is expected to recover from relaxed operational restrictions.

Investors will also be looking at progress on the vaccine front and first quarter earnings results.

Aboitiz Power and Meralco will report first quarter earnings on April 26, coinciding with peak power demand during the summer season.

Nicky Franco, head of research of Abacus Securities, said the upcoming initial public offering of Monde Nissin would likely sap liquidity from the market until the listing day.

Monde Nissin’s IPO offering is scheduled from May 24 to 28 while its tentative listing date is on June 7.

Monde Nissin will be offering 3.6 billion primary shares and up to 540 million over-allotment option shares at a price of up to P17.50 apiece.  The final offer price will be determined on May 18.