The Philippine stock market is expected to remain cautious and range-bound in the near term as investors continue to weigh a mix of global and local headwinds.
The Philippine Stock Exchange index (PSEi) closed last week at 5,988.02, down 101.51 points, or 1.67 percent, week-on-week. Renewed global jitters and weak local data rattled investor confidence, according to market analysts.
“Global markets wobbled following a commodity sell-off, peso weakness, and revived US-China trade tensions,” First Metro Securities said in a statement.
The rebound in oil prices and retreat in gold also heightened inflation worries, which kept market investors cautious, the firm said.
Domestically, worries deepened after recent data showed a wider September budget deficit and slower car sales. The International Monetary Fund (IMF) warned that typhoon damage could further drag growth.
For the coming week, investors are expected to closely monitor upcoming overseas developments, particularly the US Federal Reserve’s rate decision and the US gross domestic product (GDP) report, as well as the Philippines’ trade and Producer Price Index (PPI) reports.
First Metro Securities sees market support at 5,800 to 6,000, while resistance stands at 6,200 to 6,300. “Until then market stands still—steady, yet trembling beneath faint aftershocks of caution,” First Metro Securities said.
