PSEi might retest 6,000 amid global risks 

Philippine stocks might remain under pressure this week as investors stay cautious over geopolitical tensions and their spillover on inflation. The main index is expected to retest key support levels.

For this week, support is seen at the 6,000 level, which may be tested anew. Resistance is pegged at 6,150.

The Philippine Stock Exchange Index (PSEi) slipped to 6,018.62 last week, down 0.67 percent. This, as risk aversion intensified due to escalating Middle East conflict and a hawkish pause by the US Federal Reserve, according to 2TradeAsia.

Weakness was broad-based, led by mining and property stocks, while participation thinned and net foreign selling persisted.

Japhet Tantiangco, research manager at Philstocks Financial Inc., said sentiment this week remains fragile. Many investors are opting to stay on the sidelines amid lingering uncertainties tied to global oil prices and the peso’s weakness.

“This week, the local market is still expected to have a bearish default,” Tantiangco said. He noted that elevated oil prices and a weaker currency could fuel inflation and weigh on equities.

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Still, Tantiangco pointed out that valuations have become more attractive. As of last Thursday, the PSEi was trading at a price-to-earnings ratio of 10.1 times, below its five-year average of 14.4 times.

For 2TradeAsia, the conflict in the Gulf has evolved into a broader threat to global energy markets. It raised concerns over prolonged inflation and a possible synchronized slowdown.

The brokerage added that local risks are compounded by the Philippines’ heavy dependence on imported fuel and relatively weak positioning versus regional peers.