Philippine stocks may experience bearish bias this week, as markets may remain cautious until key economic data are released at home and in the United States.
On Friday, the Philippine Stock Exchange Index (PSEI) fell 0.55% or 34.62 points to close at 6,155.57, while the widespread all-stock index fell 0.43% or 16.19 points to end with a score of 3,686.88.
In a week, PSEI fell 2.01% or 126.01 points from 6,281.58 on August 22.
“The local market has been in a three-week decline, indicating that bearish sentiment is under control. Confidence is mild amid the company’s results in the second quarter, new U.S. tariff threats and uncertainty about the outlook for the local economy,” Philadelphia research manager Japhet Louis O. Tantianco said in a Viber message.
AP Securities, Inc. The market may still have scope as fresh catalyst companies wait for fresh catalysts this week.
“We expect the market to continue trading sideways with a slight bias. Investors may remain cautious while monitoring how the peso can support it after lowering tax rates,” Garcia said. “The potential market driver is the Manufacturing and Services PMI (Purchasing Managers Index) for inflation reports in the U.S. and Philippines.”
Last week, the third consecutive meeting of Sentral Ng Pilipinas (BSP) in Bangkok lowered the benchmark interest rate by 25 basis points (BP) to raise the policy rate to 5%, as expected by all 20 analysts BusinessWorld polling.
It has now cut borrowing costs by 150 basis points since its ratio reduction cycle began in August 2024.
BSP Governor Eli M. Remolona, Jr. It says that the key rate is now at the “best position” in terms of inflation and output.
But he has opened the door a slowdown this year, which could mark the end of his current currency easing cycle.
“The local market may re-bargain. The appeals court ruling for the Federal Circuit ruling is that most of President Donald J. Trump’s tariffs are illegal and may give the market a boost…Investors may expect the upcoming S&P Global Philippines manufacturing and local economy’s August inflation rate.” He sets PSEI’s main support at 6,150 and the main resistance at 6,400.
“As the local easing cycle is presumably concluding, attention will shift to the next broader topic, especially as we navigate the final months of 2025,” online broker 2tradeasia.com said in the market. “In the short term, at least, the focus should shift from beta-driven rally to speed-sensitive races.”
2tradeasia.com sets PSEI instant support at 6,200 and resistance at 6,500. – Sheldeen Joy Talavera
