Philippines stocks are likely to fall further this week as markets are awaiting the government’s plans to propose “reciprocal” tariffs to the world’s largest economy next month to negotiate a U.S. effort to impose a 20% tariff on the U.S. on the world’s largest economy.
On Friday, the Philippine Stock Exchange Index (PSEI) fell 0.05% or 3.32 points to 6,459.88, while the widespread all-stock index rose 0.07 points to 3,812.53.
The week after week, from the 6,395.57 match on July 4, the PSEI rose by 1.01% or 64.31 points.
“The global market was shocked by the ‘tariff Tuesday’ by U.S. President Donald J. Trump…which includes 20% tariffs on Filipino goods,” online broker 2tradeasia.com said in the market notes.
“The local market managed to release earnings and make technological advances last week. However, the last two trading dates show that the tariff threat poses a downside risk to the march,” Japhet Louis O. Tantiangco, research manager at Philstocks Financial Inc., said in a Viber message.
Mr Tantiangco said this week that tariff concerns will continue to be concerned.
“The U.S. plan to put a 20% tariff on the Philippines is still expected to weigh sentiment. Therefore, investors are expected to be wary of clues about trade negotiations between the Philippines and the U.S. The signs of progress may help eliminate local markets. But the lack of positive trade talks developments may make the market lower,” he said.
Last Friday, Foreign Affairs Secretary Massachusetts. Theresa P. Lazaro confirmed that Ferdinand R.
“Investors may also be mindful of cash remittance data for overseas Filipino workers next week to understand clues to the local economy,” Mr Tantiangco added.
He set the main support of PSEI at 6,400 and the main resistance was 6,600.
“Characteristically, the local market is now surpassing its 200-day exponential moving average (EMA), which is seen as a positive signal. The moving average convergence difference line moves so much on the signal line, reflecting the short-term bullish momentum.”
“However, as global trade risks linger, the market may still test its 200-day EMA this week. How the market defends its position above the 200-day EMA may play a major role in the direction it is heading.”
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in an email that PSEI’s immediate support is 6,330-6,370 and immediate resistance is 6,500.
“If Mr. Trump is willing to compromise and be content with the lower negotiated tariffs during trade negotiations, then the market is still in a waiting way,” Riccaford said.
2tradeasia.com sets the PSEI instant support rate at 6,300 and the resistance is 6,500-6,550. – Revin Mikhael D. Ochave
