By Revin Mikhael D. Ochave, Reporter
PHILIPPINE EQUITIES are anticipated to drop this week as market mood is impacted by a sluggish peso.
“If the peso continues to underperform against the dollar, particularly if it surpasses the P59 threshold, it may impact the local stock market,” Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financial, Inc., stated in a Viber message.
He further noted that traders would continue to act with caution as they await new market drivers.
The peso concluded at P58.87 versus the dollar on Friday, slightly improved after it ended at a more than two-year nadir of P59 on Thursday.
“The domestic market remains at appealing levels. Therefore, we might still witness bargain-hunting in the upcoming week’s trading,” Mr. Tantiangco remarked.
On Friday, the Philippine Stock Exchange index (PSEi) decreased by 1.2% or 82.88 points to 6,780.13. The broader all-share index also fell by 0.55% or 21.18 points to 3,788.21.
On a week-over-week basis, the PSEi rose by 1.55% or 103.48 points from its 6,676.65 close on Nov. 15.
“The local benchmark index fluctuated within a tight trading range below 7,000, affected by growth anxieties and potentially slower interest rate cuts in 2025, yet still managed to finish the week positively,” online brokerage firm 2TradeAsia.com noted in a market commentary.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., indicated that the market’s crucial support over the last five months stands at 6,500 to 6,700, with resistance at 7,000.
“The PSEi still advanced after experiencing four consecutive weeks of decline, as markets began to adjust to a Donald Trump presidency,” he added.
2TradeAsia.com set the market’s support at 6,500 and resistance at 7,000.
“Recent ‘tectonic risks’ have complicated decision-making processes that bolster confidence in 2025 models,” it stated. “This does not render the market impossible to trade; however, securities with excess returns are slightly more challenging to uncover.”
“Maintain selectiveness in trades, recognizing that despite a steady earnings trend, some stocks are presently trading at significantly discounted valuations due to the downturn,” it added.
Mr. Tantiangco identified the market’s primary support at 6,700 to 6,800 and resistance at 7,000.
“From a charting perspective, the market may continue to evaluate its 200-day exponential moving average,” he noted. “Establishing a position above this line would be interpreted as an indication of upward momentum developing for the market.”
