The Philippine Stock Exchange Index (PSEi) is expected to trade near the 6,000 level, a key psychological support, as investors continue to monitor global economic data and lingering geopolitical risks.
First Metro Securities said buyers may attempt to stabilize the recent sell-off should the benchmark approach the 6,000 mark. However, rallies may face pressure as investors remain cautious about global uncertainties.
Last week, the benchmark PSEi retreated sharply to 6,058.94, down 261.47 points, or 4.14 percent, week-on-week, as selling pressure resurfaced across the broader market.
“Global sentiment turned defensive amid escalating tensions in the Middle East, while renewed geopolitical risks and cautious positioning weighed on global equities,” First Metro said.
Locally, market participants also assessed the latest inflation reading. Headline inflation in February rose to 2.4 percent, up from 2 percent in January, remaining within the Bangko Sentral ng Pilipinas’ 2 percent to 4 percent target band. First Metro said the increase prompted investors to reassess expectations on the timing and pace of potential policy easing by the central bank.
For the coming week, investors will track key economic indicators abroad and at home. These include the U.S. Producer Price Index (PPI) due on March 18 and initial jobless claims data on March 19, which may provide fresh clues on global economic conditions.
Locally, the market will also watch for the release of cash remittances data on March 17 and the national government’s budget balance on March 19.
