No clear direction for stocks this week

MANILA, Philippines —   Sideways trading in the local stock market is seen persisting this week, with episodes of profit taking and bargain hunting likely to take turns as investors look out for further catalysts.

Unicapital Securities head of research Wendy Estacio-Cruz said the Philippine Stock Exchange index (PSEi) is expected to trade cautiously and largely range bound this week, with selective bargain hunting providing near-term support following recent pullbacks.

“We expect the index to trade between 6,200 and 6,500,” she said.

Estacio-Cruz said the market is looking ahead to upcoming Philippine data releases, including the December balance of trade on Jan. 27 and the full year 2025 GDP growth on Jan. 29.

First Metro Investment Corp. head of research Cristina Ulang, for her part, said that market correction could extend but will remain shallow ahead of upcoming economic data.

The continued weakness of the peso weighed on the local stock market last week, with the PSEi closing in negative territory last Friday at 6,464.67.

Week-on-week, however, the benchmark index managed to advance by 1.84 percent.

“The local market continues with its bullish move, extending its rally to a fourth straight week. Other numbers are also encouraging with net value turnover averaging P6.64 billion, reflecting quite strong conviction,” Philstocks Financial research manager Japhet Tantiangco said.

However, Tantiangco said following a four-week rally, the local market could be weighed by profit–taking pressures this week, with support seen at 6,400 and resistance at 6,600.