Sideways sessions expected amid global tensions

MANILA, Philippines — The local stock market is seen maintaining its sideways movement this shortened trading week, with ongoing uncertainties expected to keep investors on the sidelines.

Despite ending in positive territory at 5,961.40 last Friday, the Philippine Stock Exchange index slipped by 0.26 percent week-on-week.

2TradeAsia.com, the online arm of F. Yap Securities Inc., said the weak peso, high oil prices and Middle East tensions muted buying interest last week, resulting in an anemic liquidity as average daily turnover shrank by 23.52 percent to P5.17 billion.

First Metro Investment Corp. head of research Cristina Ulang said the market’s two-day rally last week might extend early this week on prospects an Iran-US peace deal would ease oil prices.

However, she said a further Bangko Sentral ng Pilipinas signal of an off-cycle rate hike might cause a sell-off toward the weekend.

Philstocks Financial research manager Japhet Tantiangco, for his part, said the local market is still expected to deal with lingering uncertainties which could keep its movement tempered this week.

He said the bourse is seen taking cues from the developments between the US and Iran, as well as the movement of the local currency and bond yields.

“With the progress in the US-Iran situation, the peso has regained some lost ground against the US dollar. However it remains weak and inflationary,” Tantiangco said.

He said a further appreciation of the local currency would strengthen the market, while a depreciation is expected to drag the bourse.

He said rising inflation and interest rate expectations may likewise continue to weigh on the market.

“Taking the said factors into consideration, the local market could move sideways this week. Investors are advised to trade cautiously,” he said.

Immediate support is seen at 5,800, while resistance is at 6,000 to 6,050.

There will be no trading on May 27, 2026 in observance of Eid’l Adha (Feast of Sacrifice).