Investors’ cautious stance seen lingering
Philippine equities may remain volatile this week as investors weigh signs of improving local fundamentals against lingering global risk-off sentiment, according to brokerage 2TradeAsia.
Technical levels remain key, with immediate support seen at 6,300, secondary support at 6,100 and resistance near 6,500.
In its market outlook for Feb. 9 to Feb. 13, the firm said the Philippine Stock Exchange Index (PSEi) staged a rebound last week, rising 61 points or 0.98 percent to close at 6,390, even as trading conditions stayed cautious.
2TradeAsia noted that the recovery was supported by record-high January manufacturing output and within-target inflation of 2 percent, which helped counter a more guarded economic outlook from Fitch’s BMI.
However, the brokerage firm pointed out that gains were uneven across sectors. Services stocks led the advance with a 2.78 percent rise, while mining and oil declined by 10.3 percent. This reflected investors’ rotation away from more speculative plays.
Market turnover also softened, with weekly value traded slipping to P7.42 billion, while net foreign buying eased to P3.70 billion as foreign participation continued to thin.
The firm described global markets as entering a broad “derisking phase,” with high-beta growth assets under pressure from macro uncertainty and geopolitical frictions.
It added that recent strength in safe-haven assets, such as gold, suggests investors are shifting toward more defensive positioning.
For Philstocks financial research manager Japhet Tantiangco, investors could maintain their cautious stance while waiting for fresh leads.
