Stock market analysts expect the Philippine Stock Exchange Index (PSEi) to challenge the 5,800 support level this week as external pressures weigh on investor sentiment.
According to brokerage 2TradeAsia, the index faces immediate support at 5,800, with resistance at 6,050 and a secondary ceiling at 6,300. The PSEi closed at 5,833.64 last week, dropping 1.85% or 109 points, dragged down by broad-based selling.
Holding firms led the decline with a 2.8% drop, followed by the property sector which fell 2.69%. Declining stocks outpaced advancers 104 to 83.
"Market remained weak with declines outpacing gainers," 2TradeAsia noted.
Ongoing geopolitical tensions are a key factor. Lingering second-round effects from the US-Iran conflict and resulting energy shocks continue to influence market direction. Elevated oil prices have stoked inflation fears, prompting investors to adjust interest rate expectations.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., highlighted the conflict as a major catalyst, particularly its impact on global oil prices. While a ceasefire has been in place since April 7, risks persist as the US reportedly considers short but high-impact military action on Iran, which could damage infrastructure and trigger escalation.
Ricafort added that limited progress in de-escalation talks could further fuel volatility in energy markets.
The US Federal Reserve kept rates steady at 3.5% to 3.75% but warned of broader price pressures.