Share prices are expected to move sideways with a downward bias this week as negative sentiment from weak economic performance continues to affect the market.
Last week, the benchmark Philippine Stock Exchange index slipped 0.07 percent to close at 6,328.97 after the government reported sluggish economic performance for the fourth quarter and full year 2025.
“The underperformance of the local economy last quarter and the pessimistic views on how it would perform this year may still weigh on the market,” said Japhet Tantiangco, research head at Philstocks Financial Inc.
Investors are closely monitoring this week’s release of January inflation data and the S&P Global Philippines Manufacturing PMI for fresh clues on the state of the economy.
Emilio Neri, lead economist at Bank of the Philippine Islands, said headline inflation likely remained steady at 1.8 percent, implying a 0.5 percent month-on-month increase. This comes as food and energy pressures offset easing costs for utilities and vegetables.
“The monthly uptick was mainly driven by higher fish and rice prices, alongside elevated global oil prices and LPG rate hikes,” Neri said. He noted that rice inflation has risen month-on-month for three consecutive months, with sharper gains since December due to weaker local production in the fourth quarter of 2025.
Despite a two-week decline, analysts said the local market remains on an uptrend dating back to mid-November 2025. For the coming week, the index support is seen at 6,150, while resistance is seen at 6,400.
