Stocks set sights on 6,500 level

MANILA, Philippines — The local stock market has now set its sights on the 6,500 level as its next target, making it vulnerable to potential profit taking this week.

The benchmark Philippine Stock Exchange index (PSEi) is coming off a strong showing last week, closing Friday’s session at 6,458.20, up by 0.72 percent week-on-week.

“The PSEi gained for the fourth straight week after the better-than-expected inflation data at 1.4 percent year-on-year in April 2025, the slowest in nearly 5.5 years or since November 2019 or shortly before the COVID-19 pandemic, thereby could justify further monetary easing in the coming months,” RCBC chief economist Michael Ricafort said.

Apart from local developments, Unicapital Securities head of research Wendy Estacio-Cruz said there is also optimism on the international front, particularly after the trade deal framework between the US and the UK suggested that the US may be open to renegotiations and agreements with other countries.

Given this, she said the index is expected to trade within the 6,300 to 6,500 range this week, with the upcoming elections in focus. The local stock market is closed today due to the national and local elections.

First Metro Investment Corp. head of research Cristina Ulang said that profit-taking could set again for a healthy breather before the PSEi attempts to break above 6,500 toward the weekend.

Resistance is currently seen at 6,500, while support is at 6,200.

“Despite softer growth, earnings thus far, particularly in consumer and banking names, have proven resilient and with election tailwinds extending in the second quarter, the broader picture remains constructive for local risk assets,” 2TradeAsia.com said.

The online brokerage firm said momentum may pick up post-election once the political noise clears and fiscal visibility improves.