PSEi seen consolidating near 6,300

The local stock barometer is likely to consolidate near the 6,300 level this week as renewed geopolitical tensions continue to dampen risk appetite, according to brokerage 2TradeAsia.

The Philippine Stock Exchange Index (PSEi) fell 104 points week on week to close at 6,333, down 2 percent, as selling pressure returned following a short-lived rebound.

Financials and property stocks led the decline, dropping 3.5 percent and 3.9 percent, respectively.

2TradeAsia said the pullback was partly driven by escalating geopolitical frictions between the United States and Europe, which triggered a renewed flight to safety globally. This risk-off sentiment pushed investors toward hard assets, benefiting mining and oil stocks, which rose 5.2 percent during the week on the back of firmer metal prices.

Market participation, however, thinned, with average daily turnover easing to P6.42 billion. Net foreign buying fell sharply to P472 million, down 92 percent from the previous week.

Market breadth also turned negative, with decliners outnumbering advancers, 111 to 88.

2TradeAsia noted that global capital flows remained sensitive to US dollar movements and shifting yield spreads, keeping emerging markets, including the Philippines, vulnerable to volatility.

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While the peso remains exposed to these external pressures, selective opportunities may still emerge in mining and materials, supported by strong commodity fundamentals.

For the near term, 2TradeAsia advised investors to remain cautious, focus on fundamentally sound names, and keep some liquidity amid heightened global uncertainty.