Philippine shares may continue to fluctuate sideways this week amid weak sentiment as investors await new leads, especially from trade talks between the US and China and the US Federal Reserve's policy meeting.
On Friday, the benchmark Philippine Stock Exchange Index (PSEI) fell 1.08% or 65.94 points to close at 5,988.02, while the broader all-share index fell 0.81% or 29.47 points to 3,608.11.
It was the index's worst close in nearly a month or since it ended at 5,953.46 on September 30.
Week to week, the PSEi also fell 101.51 points from the closing level of 6,089.53 on October 17.
Louis A., head of sales for Regina Capital Development Corp. “The Philippine market closed below 6,000 points as sellers took control of the session. The continued depreciation of the US dollar against the Philippine peso is weighing on market sentiment. Additionally, market participants are pricing in lower GDP (gross domestic product) forecasts projected by various institutions,” Limlingan said in a Viber message on Friday.
“Local equities were dominated by sellers last week due to China-US trade and geopolitical uncertainties as well as a lack of other local catalysts,” online brokerage 2TradeAsia.com said in a market note.
For this week, Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said the market will look for new drivers.
“We may see some episodes of gains driven by bargain hunting. However, cautious sentiment is expected to remain as investors will continue to wait for catalysts while dealing with current concerns,” Mr Tantiangco said in a Viber message.
“The local market is ultimately still biased bearish amid downside risks and lack of fresh leads.”
He said the investor was US President Donald J. Looking forward to scheduled trade talks between Trump and Chinese President Xi Jinping. “A positive outcome of the meeting, primarily a trade agreement, is expected to help lift market sentiment.”
“Chart-wise, the local market is still on a downtrend, making another low after hitting the 50-day exponential moving average last October 20…Going forward, the market may test the validity of the breach of these lines. If the market is unable to get back above 6,000, this will be its new resistance, while the next support is seen at 5,800,” Mr Tantiangco said.
2TradeAsia.com said, “The Trump-Xi summit in Korea… is emerging as a wildcard for supply chains in tech and auto, potentially rekindling protectionist barriers, which could lead to broader sentiment erosion.”
It said the market will keep an eye on the Fed's Oct. 28-29 meeting, where it is expected to continue its easing cycle after making the first rate cut for this year last month. “This paves the way for a December follow-up that could sustain the easing cycle into early 2026 if the inflation print continues to cooperate.”
This placed the immediate support of PSEI at 6,000 and secondary support at 5,800, while resistance is pegged at 6,200. , Alexandria Grace C. Magno
