PHILIPPINE SHARES may continue to maneuver sideways as investors seek for fresh catalysts, including tariff policy announcements from the Trump administration and listed firms’ financial results.
On Friday, the Philippine Stock Exchange index (PSEi) dropped by 0.39% or 25.31 points to shut at 6,339.38, while the broader all shares index fell by 0.22% or 8.65 points to three,767.41.
Week on week, the PSEi climbed by 0.53% or 33.25 points from its 6,306.13 finish on Aug. 1.
“The PSEi went sideways this week as investors weighed the lift from the second quarter gross domestic product (GDP) and cooling July inflation against global policy uncertainties and potential third quarter growth risks,” online brokerage 2TradeAsia.com said in a market note.
“For the past nine weeks, the local market has been moving alternately between gains and losses. The dearth of clear direction reflects investors’ indecisiveness as they proceed to weigh mixed aspects from prospects of further policy easing by the BSP (Bangko Sentral ng Pilipinas), risks and uncertainties on the US’ protectionist trade policies, and the general status of the overall economy,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
Philippine GDP expanded by 5.5% within the April-to-June period, barely faster than the 5.4% growth in the primary quarter but slower than the 6.5% expansion within the second quarter last 12 months. This matched the lower end of the federal government’s 5.5%-6.5% growth goal for this 12 months.
For the primary half, GDP growth averaged 5.4%, barely below the federal government’s goal.
Meanwhile, Philippine inflation slowed to a near six-year low of 0.9% in July from 1.4% in June and the 4.4% print in the identical month a 12 months ago. This marked the fifth straight month that it settled below the central bank’s 2-4% goal.
Yr to this point, the patron price index averaged 1.7%, barely higher than the BSP’s 1.6% full-year forecast.
For this week, Mr. Tantiangco said the market will search for leads.
“Investors are expected to observe out for updates regarding US President Donald J. Trump’s trade policy plans, totally on his chips and semiconductor tariffs. Investors are also expected to proceed monitoring second quarter corporate reports,” he said. “Prospects of further easing by the BSP following supportive economic data this past week may proceed to present the market support.”
“Chart-wise, based on its performance from mid-July to present, the local market continues to be bearishly biased. To negate this trend, the market must first go above its most up-to-date low (6,222.04 last July 31) and most up-to-date high (6,466.10 last July 24),” he added.
2TradeAsia.com put the PSEi’s immediate support at 6,300 and resistance at 6,600.
“The continued second quarter earnings season will function a critical period for validating fundamental theses, which have shifted amidst evolving macroeconomic pressures,” it said. — Revin Mikhael D. Ochave