PHILIPPINE STOCKS may remain under pressure this week as investors await developments in talks between the USA and Iran and weigh growing inflation concerns.
On Friday, the Philippine Stock Exchange index (PSEi) plunged by 1.55% or 91.18 points to shut at 5,768.76, while the broader all shares index went down by 0.81% or 26.98 points to three,280.97.
This was the PSEi’s worst finish in over six months or because it closed at 5,756.66 on Nov. 18, 2025.
Week on week, the benchmark index fell by 192.64 points from May 22’s 5,961.40.
“The bellwether PSEi capitulated below the crucial 5,800 psychological support to shut at 5,768.12 as persistent inflation fears, US-Iran conflict flareups, weakening peso, political rifts on the local front, and caution ahead of next week’s latest inflation release, triggered a sell-off,” online brokerage 2TradeAsia.com said in a note on Friday.
“Sentiment has develop into more bearish as cracks worsen between the US and Iran amid the recent exchange of military force. Satirically, this comes as each undergo negotiations aiming for a peace deal,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
He added that the first-quarter financial results of listed corporations have underperformed amid weakening Philippine economic prospects, with PSEi members’ average revenue and net income growth was at 8.4% and 4.9% respectively, slower 10.8% and 13.3% a 12 months ago.
“With the second quarter still bearing the economic consequences of the Middle East conflict, corporate performance may proceed to grow weaker.”
For this week, Mr. Tantiangco said the market will proceed to take cues from developments between the US and Iran, because the situation stays fragile despite ongoing negotiations.
Philippine May inflation data scheduled for release on Friday (June 5) would even be a key driver “as it might give clues on the direction of the country’s household consumption (the economy’s essential engine) and the BSP’s (Bangko Sentral ng Pilipinas) policy outlook. An inflation print which stays elevated, especially one which exceeds April’s 7.2%, is anticipated to weigh on the local bourse,” he added.
Following the PSEi’s drop below the 5,800 line, the market may retest this support this week, Mr. Tantiangco said. “Whether it is in a position to get back above 5,800, the market’s trading range is seen from 5,800 to six,000. If it fails to achieve this nevertheless, next support is seen at 5,600.”
For its part, 2TradeAsia.com put the PSEi’s immediate support at 5,800, resistance at 6,050, and secondary resistance at 6,300.
“Geopolitical volatility stays the dominant theme because the US-Iran conflict swings unpredictably between short-lived truces and renewed limited strikes… This pendulum-like pattern has made risk assessment exceptionally difficult, stopping markets from constructing sustained conviction.” — Alexandria Grace C. Magno