Philippine share prices are expected to move sideways with an upward bias this week as global markets remain sensitive to shocks, according to online brokerage firm 2TradeAsia.com.
While immediate tensions in the Middle East have slightly de-escalated, investors remain wary about the vulnerability of global supply chains. Investors are also concerned about the U.S. Federal Reserve’s next monetary policy move amid current economic conditions.
“The Fed now faces an even more complex decision, with aggressive calls for rate cuts from the White House contrasting with the Fed’s measured stance since Q1,” 2TradeAsia.com said. “Our view remains conservative: while some markets are pricing in a July cut, a prudent assessment of tariff-induced inflationary pressures requires more time and data.”
Domestically, investors will continue to monitor the inflation rate, especially after recent oil price hikes attributed to the Israel-Iran attacks. However, an impending stock transaction tax cut, effective July 1, and the upcoming initial public offerings of Maynilad Water Services Inc. and Hann Holdings Inc. are expected to inject a much-needed boost to market liquidity and investor activity.
For the week, the Philippine Stock Exchange Index (PSEi)’s immediate support is 6,300, while resistance is 6,500-6,550.
Last week, the PSEi jumped 1.08 percent to close at 6,408.27, while the broader All Shares Index rose 0.84 percent to 3,792.06. Average daily value traded amounted to P5.8 billion, down from the previous week’s average of P7.35 billion. Foreign investors were net sellers for the week, with outflows reaching P1.16 billion.
