Stocks seen staying ‘bearish’
The outlook for the Philippine market’s performance next week remains bleak as the latest claims on corruption woes have worsened the already disappointing economic growth in the third quarter.
Philstocks financial research manager Japhet Tantiangco said he expects the Philippine Stock Exchange index (PSEi) to still “have a bearish default.”
“The local market is still on a decline as negative developments sustain the bearish sentiment. The bourse is now trading at levels last touched during the pandemic,” he said.
He noted that the capital index could further decline, as investors grapple with former Ako Bicol party-list Rep. Elizaldy Co’s video statement, linking President Marcos to the P100-billion budget insertion.
Co even threatened that he would “reveal the whole truth.”
“These are on top of the already low confidence towards the economy following the dismal Q3 GDP (third-quarter gross domestic product) and foreign investments data,” the analyst said.
The PSEi again recorded a fresh five-year low on Friday, sharply dropping by 2.49 percent to finish at 5,584.35.
For the local bourse to regain its strength, Tantiangco said a “strong positive catalyst is deemed needed…”
Aside from negative developments in the Philippines, the PSEi could also be weighed down by offshore concerns. These might include worries about the overvaluation of AI (artificial intelligence) firms as well as doubts about an interest rate cut from the US Federal Reserve.
“Chartwise, the local market has broken below the 5,600 level, which is considered a support. If the market is unable to get back above the said line, it will be considered as its immediate resistance, while the next support is seen at 5,400,” Tantiangco said.
