PSEi rising, but no strong rally seen

Bargain hunters may be the key to the market’s rise this week, although traders may not yet expect a strong rally amid a lack of catalysts.

Japhet Tantiangco, research head at Philstocks Financial Inc., said over the weekend that the possibility of the Philippines missing its 2024 growth target dampened the bourse’s performance.

Despite a strong start to 2025, the benchmark Philippine Stock Exchange Index (PSEi) slid by 0.88 percent to 6,296.20 last Friday, marking its third week of decline.

While the PSEi posted brief comebacks in the middle of the week, cautious investors and profit takers pulled it below the 6,300 level.

“With the market at attractive levels, we may see some bargain hunting in [this] week’s trading,” Tantiangco said.

“However, we do not expect a strong rally yet as investors continue to wait for catalysts,” he added.

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Some of the important mood boosters or busters for the market is the Philippines upcoming gross domestic product data, which Finance Secretary Ralph Recto said may have settled below 6 percent. This is below the Marcos administration’s target of 6 to 6.5 percent.

Investors will also be on the lookout for the US Federal Reserve’s next monetary policy stance, as this often influences the Bangko Sentral ng Pilipinas’ own move.

Tantiangco sees the market’s major support at 6,150 and resistance at 6,400.