Trading at the Philippine Stock Exchange (PSE) is likely to remain sideways this week as investors await negotiations between the Philippines and the United States on trade issues.
Wendy Estacio-Cruz, head of research at Unicapital, projected the PSE index could trade between the 6,400 and 6,500 levels this week.
While the U.S. has announced a 20 percent tariff on Philippine products, the Philippine government said it plans to reach out to the U.S. for negotiations before the new tariffs take effect.
“In our view, expanded tariffs, especially without negotiation, could dent export growth, particularly in high-value manufacturing,” Estacio-Cruz said.
However, current valuations may also encourage bargain hunting, as major stock prices remain undervalued.
Last week, the PSE index rose 1.01 percent to close at 6,459.88, while the broader all shares index advanced 1.27 percent to 3,812.53.
The market started the week strong on renewed confidence in the domestic economy and hopes of two more rate cuts. However, trading turned negative after the U.S. announced new tariffs against its trading partners.
Average daily value traded improved to P8.29 billion from the previous week’s average of P8 billion.
Foreign investors, however, became net sellers with outflows of P799 million, compared to the previous week’s inflow of P2.29 billion.
