Investors are expected to remain cautious this week amid US President Donald’s Trump’s tariffs pause even as some cherry-picking starts among fundamentally sound stocks.
The benchmark PSEi on Friday closed down 0.03 percent at 6,082.44 from 6,084.19 a week earlier as the US trade war with China escalated into a tit-for-tat.
Philstocks Financial Inc.’s senior research analyst Japhet Tantiangco observed that despite a five-week losing streak, the PSEi managed to stay above the 6,000 level.
“At its current position, the market is deemed to be at attractive levels. Hence, we may see episodes of bargain hunting,” he added.
“Hopes of further easing by the Bangko Sentral ng Pilipinas (BSP) moving forward may also compel investors to take positions (this) week,” Tantiangco said.
On April 10, the BSP decided to lower interest rates by 25 basis points to 5.5 percent.
Tantiangco said that investors will stay cautious, especially during the shortened trading week.
Financial markets, banks, schools, private sector offices and most government offices are closed on Thursday and Friday for a religious holiday.
Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said uncertainty over President Trump’s “tariffying moves” could cap any market rally.
Online stock trading platform 2tradeasia.com said Trump’s continuous shifting stance on tariffs — dilly-dallying from escalation, to suspension and retaliation — caused extreme volatility across global markets, particularly in export-heavy Asia. China’s response also added a layer of complexity.
Over the weekend, China said it raised import tariffs on US goods to 125 percent.
With the People’s Bank of China’s move to let the yuan depreciate to temper tariff-driven shocks and reduce capital flight may be interpreted as an indicator of a protracted trade war, 2tradeasia said.
“Our view remains that the Philippines is shielded by a consumption-led economy and low export dependence, which means direct exposure is limited,” the online stock brokerage said.
2tradeasia explains there is a potential risk-off sentiment for a multi-year global contagion from Trump’s trade war, even escalation into a war of attrition.
This could mean additional currency realignment pressures, risk-off flows, and supply chain shifts that may have more structural impacts on valuations down the line, it added.
In the year-to-date, the PSEi has lost 6.84 percent since the last trading day of 2025, when the market closed at 6,528.79. From its record close of 9,058.62 on January 20, 2018, the bellwether is now down 32.85 percent.
