Philippine stocks are expected to sustain their upward momentum this week amid overall renewed optimism about interest rate cuts, analysts said.
Philstocks Financial Inc. research head Japhet Tantiangco said the market was undervalued, leaving room for long-term investors.
The strengthening of the peso is also helping boost investor sentiment.
Tantiangco noted, however, that downside risks remain, mainly the global economic risks brought by US protectionist trade policies.
“A continuation of this is expected to help sustain the market’s rise. Investors are also expected to watch out for the remaining Q4/FY 2024 corporate reports. Strong results are also expected to help drive the market higher,” he said.
The market’s major support is seen at 6,000 this week, while major resistance is at 6,400.
The Philippine Stock Exchange index closed nearly flat at 6,294.11 last week, slightly lower by 0.07 percent, while the broader all-shares index rose 0.62 percent to 1,701.96.
The PSEi ignored the decline in U.S. markets, which dropped amid concerns on tariff policies. Investors expect the Bangko Sentral ng Pilipinas (BSP) to resume its easing cycle due to the easing inflation rate.
Average daily value traded reached P6.4 billion, lower than P7.6 billion in the previous week. Foreign investors were net buyers, with inflows reaching P1.86 billion.