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JULY 31 - AUGUST 4

MARKET RECAP�
Technical Weekly
After being rejected at the 6.7k resistance last week, the market continued its downtrend and closed just below the 6.5k level. The market is clearly did not have enough bullish momentum to maintain the initial move up and is now back at the 6.5k support area. Despite having massive net foreign buying at the start of the week, that day still ended up red, with the following days having larger move downs.

Index range for next week
The market must hold at the 6.4k level in order to at least maintain a sideways trend. Since the 6.7k rejection was so strong we can use the 6.4k-6.7k level as the current range for the market to maintain its sideways trend. Though another run up to 6.7k is possible, we would still need to see the market hold the 6.4k level first.

PSE movers/highlights
Top gainers for the week: RLC, AREIT, ALI, ACEN, JFC

Top net foreign buying: ALI, ICT, BDO, JFC, GTCAP

Local: Macroeconomics, Sociopolitical factors
- Toll collection on NLEX-SLEX connector road starts Aug. 8.
- Transport costs seen to climb in Aug.
- Philippines debt seen ballooning to P15.84 trillion by next year.
- PH debt expands to P14.15-T high.
- Cebu Pacific to add 6 new aircraft this year.
- Department of Agriculture expects food price hikes due to storm damage.

International/Foreign News
- China lifts anti-dumping tariffs on Australian barley after three years.
- European Central Bank raises rates by 25 basis points.

JULY 31 - AUGUST 4

MARKET WEEKLY

Local stocks/industries to watch-out for
- Consumer sector (pgold, jfc )
- Property (smph, meg)
- Holding firms (agi, gtcap, jgs)
- Banking (mbt, bdo, aub)
- Telco (glo, cnvrg)

Local news that can affect the market
- PH inflation hits 16-month low at 4.7% in July.
- Peso weakens, returns to 55:$1 level.
- Finance Secretary Benjamin Diokno sees no need to match US rate hike.

Foreign news that can affect the market
- Major oil producer Saudi Arabia announced that it would extend its output cuts into September.
- Bank of America’s economists retracted their earlier prediction of an upcoming US recession.