PSEi seen riding AI, energy themes

Philippine stocks may extend their recent momentum as investors rotate toward companies tied to power and digital infrastructure, although lingering inflation risks and higher oil prices could keep market volatility elevated, according to F. Yap Securities Inc.’s latest market outlook.

Also, Philstocks Financial Inc. research manager Japhet Tantiangco said that chartwise, the local market has been bullish so far. Last week, it managed to close above the 6,400 resistance line. Moving forward, this line could get retested.

“If the market is able to hold ground above the said line, its next resistance is seen at 6,550,” Tantiangco said.

F. Yap said global fund flows have started shifting away from expensive artificial intelligence (AI) stocks in the United States and Europe toward AI enablers in Asia, particularly data centers, semiconductors and power-related assets.

While the Philippine market lacks pure-play technology companies, F. Yap said investors can gain exposure through firms involved in energy, utilities, telecommunications and property developments that support digital infrastructure.

“Capitalize on the current currency and interest rate stability to accumulate high-conviction energy and digital infrastructure plays,” the brokerage said, referring to power-exposed holding firms as well as telecom and property companies with active data center pipelines.

At the same time, F. Yap urged investors to stay cautious on high-multiple consumer stocks, warning that rising fuel prices could squeeze household spending later in the third quarter.