By Revin Mikhael D. Ochave, A reporter
PHILIPPINE STOCKS are expected to fall this week amid a weaker peso and negative market sentiment about US President Donald Trump’s protectionist stance.
“Concerns about trade and global growth continued to weaken emerging markets in general,” Internet Exchange 2TradeAsia.com it said in a market note last week, citing another weekly sell-off.
On Friday, the Philippine Stock Exchange (PSEi) index rose 1.82% or 119.56 points to 6,676.65. The broad index of all shares also gained 2.5% or 92.18 points to 3,772.80. For the week, the PSEi fell by 4.3% or 300.53 points from 6,977.18 on November 8, marking a four-week low.
The stock market may fall due to economic conditions, Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financial, Inc., in a Viber message.
“If our current storms persist this week, the risk of further landfall remains high,” he said. “Headlines include local currency weakness and rising long-term domestic and US yields.”
“They also include concerns about the prospects for US defense policies and their impact on the global economy,” he added.
On Friday, the peso closed at P58.732 per dollar, 4.50 centavos stronger than its close of P58.777 on Thursday. Week-to-week, it decreased by 47.20 centavos from P58.26 on November 8.
The yield on the benchmark US 10-year note was also 1.9 points higher at 4.439% on Friday after reaching 4.505%, its highest level since May 31.
Chinese President Xi Jinping said on Friday that unilateralism and protectionism should be rejected in favor of economic trade during Mr. Trump’s return to the White House.
“Positively, our solid third quarter and nine months of business results may provide market support,” Mr. Tantiangco.
“The market’s four-week slump has brought it to even more favorable levels, opening up hunting opportunities in next week’s trade,” he added.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., placed market support at 6,500 points and major resistance at 7,080 to 7,205.
“The PSEi has corrected higher in cyclical trading from markets that have benefited since Donald Trump won the US presidential election on November 5,” he said in an email. “US stock markets have generally adjusted slightly from near record highs.”
2TradeAsia.com He said the market support is at 6,400 to 6,550 and resistance at 7,000.
“Look to oversold stocks for repeat plays in the short and medium term, while the market looks to where equity lies given the emerging risks of 2025,” it added.
Mr. Tantiangco placed market support at 6,400 and resistance at 6,700 to 6,800.
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