PSEi seen testing 5,800 support

Philippines stocks may struggle to sustain gains this week as external headwinds continue to dampen risk appetite, according to brokerage 2TradeAsia.

Immediate support is seen at 5,800, with resistance at 6,050 and a secondary ceiling at 6,300.

In its latest market outlook, the firm said the Philippine Stock Exchange Index (PSEi) remains under pressure after sliding to 5,833.64 last week, weighed down by heightened risk aversion and a weaker peso.

The local bourse fell by 109 points or 1.85 percent for the week, with selling broad-based across sectors. Losses were led by holding firms, down 2.8 percent, and property, which declined 2.69 percent.

“Market remained weak with declines outpacing gainers,” the brokerage said, noting that decliners overwhelmed advancers, 104 to 83.

Global developments remain the key overhang.

Lingering second-round effects of the US-Iran conflict and the resulting energy shock continue to influence market direction.

Elevated oil prices have fueled inflation concerns, prompting investors to recalibrate expectations on interest rates.

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Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said that the conflict remains a major catalyst, particularly its impact on global oil prices.

Ricafort noted that while a ceasefire has been in place since April 7, risks persist as the United States is reportedly considering short but high-impact military action on Iran, which could damage infrastructure and trigger escalation.

Limited progress in deescalation talks could further fan volatility in energy markets, he added.

Meanwhile, the US Federal Reserve kept rates steady at 3.5 percent to 3.75 percent but warned of broader price pressures.