Trading is expected to remain sideways during this shortened week amid heightened geopolitical tensions.
“The local market is still expected to have a bearish default due to rising inflation expectations amid the uncertainties of the U.S.-Israel-Iran war,” Philstocks Financial Inc. research head Japhet Tantiangco said.
“Investors are also expected to trade cautiously ahead of the long weekend. Elevated oil prices and the weak position of the peso are expected to continue weighing on market sentiment. Investors are also expected to monitor further developments in the conflict in the Middle East,” he added.
Analysts said investors continue to stay on the sidelines even as the local market remains at bargain levels.
As of Friday’s closing, the PSEi is trading at a price-to-earnings ratio of 10.1, below its average of 14.4 over the last five years and the regional average of 17.8.
For this week, the local market’s trading range is seen between 5,800 and 6,000.
Last week, the PSEi declined 0.76 percent to 5,972.83, while the broader all shares index fell 0.27 percent to 3,335.86.
Foreign selling accelerated to P2.1 billion from the previous week’s P1.87 billion.
