Philippine stocks are expected to move sideways this week on lack of catalysts.
Analysts said investors also turned cautious amid the hawkish stance by the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP).
Philstocks Financial Inc. research head Japhet Tantiangco said while some bargain-hunting could take place this week after the index dropped below the 6,100 level, overall sentiment remained cautious.
“However, we don’t see a strong catalyst yet that could propel the market to stage a significant rally. Investors are expected to maintain a cautious stance while waiting for fresh leads,” he said.
“US President Trump’s latest tariff moves and the BSP’s decision to keep policy rates unchanged may also continue to weigh on sentiment,” he said.
A positive development for the market is the continued strengthening of the peso against the dollar.
The stock market’s support is seen at 6,000 this week and resistance at 6,400.
The Philippine Stock Exchange index dropped 1.52 percent last week to close at 6,061.33, while the broader all-shares index declined 0.94 percent to 3,629.29.
The new tariff threats by President Donald Trump and failed hopes for a 25-basis-point rate cut by the BSP weighed on sentiment.
Average daily turnover went down to P5.7 billion from the previous week’s average of P7.48 billion.
Foreign investors turned net sellers, with outflows reaching P2.49 billion.