PHILIPPINE SHARES may continue to decline this week ahead of the release of key data that could show the impact of the Middle East war on the economy, with the lack of a resolution to the conflict weighing on emotions.
On Thursday, the Philippine Stock Exchange (PSEi) index fell 1.25% or 74.25 points to close at 5,833.64, while the broader all-stock index fell 0.7% or 23.4 points to 3,320.20.
This was the PSEi’s lowest close in five months or since it closed at 5,813.71 on Nov. 19, 2025.
On a weekly basis, the bellwether index is down 109.85 points from April 24’s 5,943.49.
Philippine markets are closed on Friday (May 1) for Labor Day.
“The local bourse has been hit by selling pressure [last] week as increased risk aversion, combined with the peso’s historic decline, dragged down the PSEi,” online brokers 2TradeAsia.com said in a note.
This week, the Research Manager of Philstocks Financial, Inc. Japhet Louis O. Tantiangco said Philippine stocks are expected to remain under pressure amid dwindling hopes of an end to the Iran conflict, which could threaten inflation.
“The local market is still expected to move with a downward bias this week as it continues to face ongoing concerns from high global oil prices to rising inflation and interest rate expectations. Adding to the concerns is the weakness of the peso to record lows and the risks of inflation that it brings,” he said.
“The mistrust of foreign investors, rising import costs, and rising US bond yields have reduced the peso to a bearish low. Currently below 61 against the US dollar, the continued weakness of the local currency is expected to continue to discourage foreign investors and pose risks of inflation.”
This continues to increase inflation expectations, which will strengthen the case for more policy tightening by the Bangko Sentral ng Pilipinas (BSP), he added.
“At its current level, the local market is considered a deal. However, investors are still advised to remain cautious. Due to the serious risks that exist, the market may continue to decline.”
Mr. Tantiangco placed immediate support for the PSEi at 5,800 and major resistance at 6,000.
He added that data on inflation, productivity, employment and gross domestic product due out this week could give the market a clue.
For its part, 2TradeAsia.com has placed the PSEi’s immediate support at 5,800, resistance at 6,050, and secondary resistance at 6,300.
“This combination of geopolitical power risks, sticky global inflation, a strong dollar, and domestic pressures creates a challenging environment for placing strong risks on Philippine stocks,” it said.
It added that currency stability concerns amid the peso’s recent slide may further limit the BSP’s room for policy updates. – Alexandria Grace C. Magno
