Philippine stocks may be dragged by weak peso
PHILIPPINE SHARES are expected to decline this week as market sentiment is weighed by a weak peso.
Tomas Kauer - Moderator 
By Revin Mikhael D. Ochave, Reporter
PHILIPPINE SHARES are expected to decline this week as market sentiment is weighed by a weak peso.
“The peso’s weakness against the dollar, if it persists, especially if it breaches the P59 level, may weigh on the local bourse,” Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financial, Inc., said in a Viber message.
He added that investors would remain cautious while waiting for new catalysts.
The peso closed at P58.87 against the dollar on Friday, slightly better after it finished at a more than two-year low of P59 on Thursday.
“The local market remains at attractive levels. Hence, we may still see bargain-hunting at next week’s trading,” Mr. Tantiangco said.
On Friday, the Philippine Stock Exchange index (PSEi) fell 1.2% or 82.88 points to 6,780.13. The broader all-share index also dropped 0.55% or 21.18 points to 3,788.21.
Week on week, the PSEi improved 1.55% or 103.48 points from its 6,676.65 close on Nov. 15.
“The local bellwether index gyrated in a tight trading band south of 7,000, weighed by growth concerns and potentially slower rate cuts in 2025, but ultimately managed to end the week on the green,” online brokerage firm 2TradeAsia.com said in a market note.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the market’s important support over the past five months is 6,500 to 6,700 and resistance is 7,000.
“The PSEi still gained after declining for four straight weeks, after which markets started to price in a Donald Trump presidency,” he added.
2TradeAsia.com placed the market’s support at 6,500 and resistance at 7,000.
“Recent ‘tectonic risks’ have made it difficult to make the computational choices that increase confidence in 2025 models,” it said. “It does not make a market impossible to trade, only securities with excess returns are slightly more challenging to find.”
“Stay selective on trades, acknowledging that with intact earnings trend, some issues are now trading at extremely discounted multiples because of the rout,” it added.
Mr. Tantiangco put the market’s major support at 6,700 to 6,800 and resistance at 7,000.
“Chartwise, the market may continue to test its 200-day exponential moving average,” he said. “Securing position above this line would be taken as a sign that there is upward momentum building up for the market.”
