PHILIPPINE STOCKS could move sideways this week with a bearish bias as the market is likely to stay cautious before the release of key economic data at home and in the United States.
On Friday, the Philippine Stock Exchange index (PSEi) declined by 0.55% or 34.62 points to close at 6,155.57, while the broader all shares index slipped by 0.43% or 16.19 points to end at 3,686.88.
Week on week, the PSEi tumbled by 2.01% or 126.01 points from the 6,281.58 finish on Aug. 22.
“The local market is already on a three-week decline, showing that bearish sentiment is currently in control. Confidence is tepid amid a mixed bag of second quarter corporate results, new US tariff threats, and uncertainties over the local economy’s outlook,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
For this week, the market may remain range-bound as investors await fresh catalysts, AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message.
“We’re expecting the market to continue trading mostly sideways with a slight downward bias. Investors are likely to remain cautious while monitoring how the peso holds up following the rate cut,” Mr. Garcia said. “Potential market movers are manufacturing and services PMI (purchasing managers’ index) from the US and the Philippine inflation report on Friday.”
Last week, the Bangko Sentral ng Pilipinas (BSP) lowered benchmark interest rates by 25 basis points (bp) for the third straight meeting to bring the policy rate to 5%, as expected by all 20 analysts in a BusinessWorld poll.
It has now slashed borrowing costs by a cumulative 150 bps since it began its rate-cut cycle in August 2024.
BSP Governor Eli M. Remolona, Jr. said that the key rate is now at the “sweet spot” in terms of inflation and output.
However, he left the door open for one more rate cut this year, which would likely mark the end of its current monetary easing cycle.
“The local market may bounce back on bargain hunting. The US’ Court of Appeals for the Federal Circuit’s ruling that most of President Donald J. Trump’s tariffs are illegal could give the market a boost… Investors may look forward to the upcoming S&P Global Philippines Manufacturing PMI and the August inflation rate for clues on the local economy,” Mr. Tantiangco said. He put the PSEi’s major support at 6,150 and major resistance at 6,400.
“With the local easing cycle speculated to near its conclusion, attention moves to the next broader theme, especially as we navigate the final months of 2025,” online brokerage 2TradeAsia.com said in a market note. “The focus should pivot from beta-driven rallies in rate-sensitive plays towards aggressive but higher quality stories, at least in the short run.”
2TradeAsia.com put the PSEi’s immediate support at 6,200 and resistance at 6,500. — Sheldeen Joy Talavera
