By Alexandria Grace C. Magno
PHILIPPINE STOCKS might continue to trade sideways this week as investors weigh bargain-hunting opportunities against lingering macroeconomic and political risks, analysts said.
“For the last three weeks, the market has been moving sideways, reflecting investor indecision,” Japhet Louis O. Tantiangco, research manager at Philstocks Financial, Inc., said in a Viber message. While valuations are attractive, concerns over the Philippines’ tempered outlook, corruption issues and offshore headwinds pose risks, he added.
The benchmark Philippine Stock Exchange index (PSEi) shed 0.06% or 4.14 points to close at 6,089.53 on Friday, while the broader all-share index fell 0.19% to 3,665.08. Week on week, the PSEi rose 51.74 points as cautious optimism following recent rate cuts was tempered by the peso’s weakness against the dollar.
Online brokerage 2TradeAsia.com said activity remained “range-bound” amid a lack of strong catalysts. It added that sentiment could shift based on global policy cues, fiscal adjustments and corporate earnings results.
Mr. Tantiangco said the market might continue to track regional trends as it awaits “fresh leads” to establish a clear direction. A sustained recovery in the peso and lower local bond yields could help lift the market, he said.
The peso slipped 3.5 centavos to close at P58.16 a dollar on Friday, according to Bankers Association of the Philippines data posted on its website.
“Chart-wise, the local market managed to hold its position above its 10-day exponential moving average in last week’s trading, which is taken as a positive sign,” Mr. Tantiangco said. He sees immediate support at 6,000 and resistance at 6,150.
2TradeAsia.com said investors should remain cautious amid uncertainty in global monetary policy.
“Close monitoring of Fed communications and trade developments will be critical to adjusting allocations dynamically,” it said.
The brokerage placed the PSEi’s support at 6,000 and resistance at 6,200, adding that investors are likely to anchor decisions on 2026 earnings visibility as cash flow becomes increasingly relevant in a volatile rate environment.
