Philippine stocks may remain range-bound this week, with the main index struggling to sustain gains amid lingering geopolitical risks and elevated oil prices, according to brokerage 2TradeAsia.
Immediate support for the Philippine Stock Exchange Index (PSEi) is seen at 5,800. Resistance is pegged at 6,050, with a secondary ceiling at 6,300.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said that a key catalyst for global and local markets includes the end of the two-week US-Iran truce on April 21.
“Upcoming local data include the April 20 balance of payments and Bangko Sentral ng Pilipinas’ meeting—with a possible rate hike—and the April 23 budget balance report,” Ricafort added.
The PSEi slipped 99 points or 1.62 percent last week to close at 5,999.13. Early optimism from an easing of the conflict in the Middle East faded due to renewed selling pressure.
Investors continued to grapple with uncertainty surrounding the war between Israel and the United States against Iran. They are particularly concerned about the risks of disruption at the Strait of Hormuz, which has kept a “war premium” embedded in crude oil prices.
“Diplomatic negotiations remain fundamentally stalled and this impasse has created a ceiling for global market sentiment,” 2TradeAsia said. It noted that markets may move sideways until clearer developments emerge.
Sectoral performance was broadly negative. Holding firms dropped 2.93 percent, financials slid 1.22 percent and services lost 1.58 percent.
Industrials slipped 0.67 percent. Property fell 1.67 percent. Mining and oil bucked the trend, up 0.24 percent.
