The Philippine Stock Exchange index (PSEi) is likely to remain under pressure this week as investors engage in profit-taking following recent gains. Global uncertainties, including geopolitical tensions and inflation fears, are contributing to cautious sentiment.
Market Performance and Investor Sentiment
The PSEi managed a slim 15-point gain as selective bargain-hunting in index heavyweights and pockets of earnings resilience offset cautious sentiment from mixed corporate results, global uncertainty and lingering geopolitical risks.
2TradeAsia.com
Despite a modest week-on-week gain of 15.8 points, investor confidence appears weak. Japhet Louis O. Tantiangco, a research manager at Philstocks Financial, noted that trading activity remains subdued as macroeconomic and political concerns weigh heavily on market participants. Tantiangco highlights that
The ongoing conflict in the Middle East, which has persisted for more than six weeks, continues to influence market sentiment. Elevated oil prices near $100 per barrel are exacerbating inflation concerns.
Additionally, the Philippine peso's depreciation against the dollar is posing further risks to inflation, which could dampen foreign investor interest in local assets.
Political developments, particularly tensions in the Senate, may distract from pressing economic issues, further affecting market dynamics. Tantiangco advises investors to remain cautious as the PSEi struggles to maintain a position above the 6,000 mark. In light of recent reports, the PSE has also noted a significant increase in profits as seen in the ,
Immediate support for the index is forecasted at the 10-day exponential moving average, with major support at 5,800. On the upside, 2TradeAsia.com identifies resistance levels at 6,050 and 6,300.