By Revin Mikhael D. Ochave, A reporter
PHILIPPINE SHARES are expected to decline this week as market sentiment is weighed against a weak peso.
“The weakness of the peso against the dollar, if it continues, especially if it breaks the P59 level, may weigh on the local currency,” said Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financial, Inc., in a Viber message.
He added that investors will remain cautious while waiting for new catalysts.
The peso closed at P58.87 against the dollar on Friday, slightly better after it ended at a more than two-year low of P59 on Thursday.
“The local market is always at an attractive level. Therefore, we may see trade next week,” said Mr. Tantiangco.
On Friday, the Philippine Stock Exchange (PSEi) index fell 1.2% or 82.88 points to 6,780.13. The broad all-share index also fell by 0.55% or 21.18 points to 3,788.21.
On a weekly basis, the PSEi advanced by 1.55% or 103.48 points from its close of 6,676.65 on November 15.
“The bellwether index rose to a tight trading band south of 7,000, weighing on growth concerns and a possible slowdown in 2025, but ultimately managed to finish the week in the green,” the online brokerage firm said. 2TradeAsia.com said in the market book.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the market’s key support for the past five months is 6,500 to 6,700 and resistance is 7,000.
“The PSEi is still gaining after four consecutive weeks of declines, after which markets started pricing in Donald Trump’s presidency,” he added.
2TradeAsia.com placed market support at 6,500 and resistance at 7,000.
“The recent ‘tectonic risks’ have made it difficult to make computer decisions that increase confidence in the 2025 models,” it said. “It doesn’t make the market untradeable, only securities with excess returns are more challenging to find.”
“Always be selective in trades, noting that due to the trend in income, some issues are now trading at deeply discounted rates because of the route,” he added.
Mr. Tantiangco placed major market support at 6,700 to 6,800 and resistance at 7,000.
“Chartwise, the market could continue to test its 200-day moving average,” he said. “Protecting a position above this line will be taken as a sign that there is increasing momentum in the market.”
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