Stocks may continue to rise this week in low-hunting again as investors await the release of Philippine inflation and labor data.
On Friday, the Philippine Stock Exchange (PSEi) index jumped 1.35% or 82.14 points to end at 6,135.06, while the broader index of all shares rose 1.26% or 43.81 points to close at 3,517.05.
“The local currency opened 2026 on a positive note as investors gradually returned to mature stocks after the poor performance of 2025,” 2TradeAsia.com said in a market note.
“The local market is coming out of a losing year under hot trading and heavy selling abroad. This shows the low confidence of investors in local currencies amid ongoing problems and their impact on the performance of our economy,” said the Research Manager of Philstocks Financial, Inc. Japhet Louis O. Tantiangco in a Viber message. “Happily, the local market has been holding its position above 6,000.”
This week, he said commodity hunting may continue to lift the market as players focus on key reports that could provide clues on the state of the Philippine economy.
“As it is a lost year, the market remains at a high level. This week, we may continue to see asset sales in the local market. Investors are expected to look forward to our upcoming inflation and labor market data. Inflation and strong labor market data are expected to give the market a boost as they appear to be helping the local economy,” he said.
As the market shows a “bullish bias,” the PSEi could test the 6,150 line this week, said Mr. Tantiangco. “If it goes through this, it could target its next 200-day average. Support is still visible at 6,000.”
The Philippine Statistics Authority will release inflation data for December on Tuesday (Jan. 6) and the labor force survey for November on Wednesday (Jan. 7).
A BusinessWorld a poll of 14 analysts showed an average estimate of 1.4% headline inflation for December, within the Bangko Sentral ng Pilipinas’ (BSP) forecast of 1.2%-2%.
This is slower than the 1.5% print in November and 2.9% in the same month in 2024. It will mark 10 again.th in a specific month the figure we are talking about was below the bank’s annual target of 2%-4%.
“While domestic sentiment remains subdued following a series of headwinds in the fourth quarter, the combination of stabilizing inflation and the transmission of the monetary easing cycle suggests that local commodities are in a structural downturn,” 2TradeAsia.com said. “The BSP enters 2026 with a clear bias as inflation is expected to remain firmly on target.”
“While price ‘frenzy’ action could continue quickly, the basic setup for a 2026 recovery is now in place,” it added.
The online brokerage has placed immediate support for the PSEi at 5,800 and resistance at 6,000, with secondary resistance at 6,200. – Alexandria Grace C. Magno
