PSEi seen holding near 6,000

Philippine stocks might move sideways this week, with the benchmark index expected to hold near the 6,000 level as investors monitor geopolitical developments and key economic data.

According to brokerage 2TradeAsia, immediate support is seen at 5,800, while resistance is pegged at 6,050 and 6,300.

The Philippine Stock Exchange Index (PSEi) ended last week at 5,998 up 0.43 percent, supported by gains in mining, financials and holding firms.

Average turnover improved to P8.7 billion, while net foreign selling widened to P1.15 billion.

Market breadth was slightly positive, with advancers edging out decliners, 103 to 97.

2TradeAsia said sentiment has been partly lifted by hopes of a de-escalation in the Middle East war, although risks remain high as oil prices stay firm amid supply disruptions.

“Markets have priced in some de-escalation optimism, yet oil flows remain constrained, which could keep inflation pressures sticky,” the brokerage said.

The firm added that even if a ceasefire were reached, supply chain adjustments and inventory rebuilding might take time, keeping volatility in energy markets.

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Ron Acoba, chief investment strategist at Trading Edge Consultancy, said market direction would still hinge on developments overseas.

“This week, it still depends on whether we are getting closer to a resolution in the Middle East crisis. At least the rhetoric from US President Donald Trump is easing already, increasing the possibility that the war is already ending. With that, crude may further ease,” Acoba said.

Meanwhile, Michael Ricafort, chief economist at Rizal Commercial Banking Corp., flagged geopolitical developments as a key catalyst, particularly their impact on global oil prices and supply conditions.