Philippine stocks may continue to move sideways this week amid weak currencies as investors await new leads, especially with trade policy talks amid the US Federal Reserve’s policy stance.
On Friday, the Benchmark Philippine Stock Exchange Index (PSEI) slid by 1.08% or 65.94 points to close at 5,988.02, while the broader all-share index of 29.47 points to 3,608.11.
This was the index’s closest close in nearly a month or so since ending at 5,953.46 on September 30.
Week by week, the psei is back up by 101.51 points from its high of 6,089.53 on Oct. 17.
“The Philippine market ended below the 6,000 mark as sellers took control of the session. The drop in the US dollar is expected to have Philippine institutions a. Liminglan said in a Viber message on Friday.
“Sellers dominated local equity last week in China-Us Trade Plus Geopolitical uncertainty, and the lack of other local carlysts,” online broker 2Tradeafia.com said in a market note.
This week, the research manager of Philstockis, Inc. Japhet Louis O. Tantiangco said the market will look for new drivers.
“We can see some episodes of UPTICK driven by bargain hunting. However, the sentiment of caution is expected to remain as investors continue to wait for cartalysts while dealing with the current problems,” said Mr. Tantiangco.
“The local market has finally been doing well amid the downside risks and lack of innovation.”
He added that investors are waiting for scheduled trade talks between US President Donald J. Trump and Chinese President Xi Jinping. “The positive results from the meeting, primarily the trade agreement, are expected to help lift market sentiment.”
“Chart-wise, the local market is still at a low level, it forms another low after hitting more than 50: If the market can go back to 6,000, while the next support is seen at 5,800,” said Ms. TantiaBharco.
“The Trump-XI conference in Korea … LOOMS as Wild CASH SUPHANE CECH and Autos, which are the ideas of protection to prevent the rising heads from promoting broad sentiments,” 2Tradeisa.COMNEP.
He said the market will look at the meeting on Oct. 28-29 of the Fed’s Oct. “This paves the way for a December follow-up that would not support a tapering cycle until early 2026 if inflationary pressures continue to cooperate.”
It placed immediate Psei support at 6,000 and secondary at 5,800, while resistance is found at 6,200. – Alexandria Grace C. Magno
