Muted trading expected this week

MANILA, Philippines —  Muted stock trading is expected this shortened trading week, with investors seen to remain on the sidelines while waiting for fresh leads.

The Philippine Stock Exchange index plunged below the 6,000 mark last Friday, closing 1.67-percent lower week-on-week to 5,988.02.

The broader All Shares index also plummeted by 1.55 percent week-on-week to 3,608.11.

In a report, online brokerage firm 2TradeAsia.com said sellers dominated local equities last week on China-US trade plus geopolitical uncertainties, coupled with the lack of other local catalysts.

It said that local trades seem more locked to defensive yields in the long-term and speculative and story-specific plays in the short-term.

“A lofty but not impossible Santa Claus rally in domestic equities would likely hinge on healthy uptrend inflation confirmation, meaningful progress on the fiscal capex side (amid corruption probe) and foreign inflows to return to form,” 2TradeAsia.com said.

“Absent these, technical base case is to hope for the index to hold firm above 6,000 through November, buoyed by resilient remittances and holiday retail upticks,” it said.

Expected as potential catalyst for the local market this week are corporate earnings results announcements. Bargain hunting opportunity could also present itself given Friday’s significant drop.

Immediate support is seen at 6,000, while resistance is at 6,200.

The PSE said there will be no trading on Oct. 31, 2025 in observance of All Saints’ Day Eve.