PSEi seen testing 6,300
Philippine stocks might remain volatile this week as the escalating conflict in the Middle East continues to dampen risk appetite, with analysts expecting the benchmark index to test key support levels.
For this week, immediate support is seen at 6,300, with secondary support at 6,100, while resistance is placed at 6,700.
For Michael Ricafort, chief economist at Rizal Commercial Banking Corp., the key catalyst this week remains the war in the Middle East, particularly its potential impact on global oil and commodity prices, as well as overall inflation and the cost of affected goods and services.
Ricafort also pointed to several key economic data releases this week that could guide market sentiment. Locally, investors will watch bank lending and domestic liquidity data due on March 9, as well as the employment report scheduled for March 13.
“In the US, markets are awaiting the consumer price index report on March 11, followed by the core personal consumption expenditures index—the Federal Reserve’s preferred inflation gauge—and gross domestic product data, both set for release on March 13,” he added.
According to 2TradeAsia, global markets are currently navigating heightened uncertainty as tensions between the United States, Israel and Iran raise fears of supply disruptions in the Strait of Hormuz.
These concerns have pushed crude oil prices higher and prompted investors to seek safer assets, flattening the global yield curve and keeping sentiment cautious.
The brokerage said strategic flows may tactically “double down” on emerging markets, but funds are likely to stay defensive while energy costs remain elevated.
