Trading this week is expected to ride the momentum of last week’s 2.28 percent uptick in the PSEi, which closed up at 6,411.86 from 6,268.75 a week earlier, and new trading factors this week.
An analyst expects this week to be data-heavy, with key local and overseas economic data set to be released in the next couple of days.
Last week’s trade was boosted by the Chinese Commerce Ministry’s statement that China is evaluating possible US trade talks.
This helped the bellwether index regain ground since it closed in 2024 at 6,528.79. The PSEi is currently down 1.8 percent year-to-date. It is also down 29.22 percent from its record close of 9,058.62 on January 20, 2018.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC), said the market has been up for the third straight week and closed higher in April for the third consecutive month.
Peter Louis Garnace, equity research analyst at Unicapital Securities Corp., said the market may extend last week’s gains.
However, further upside could be limited as investors look to lock in gains from the recent rally and shift their attention to key economic data releases,” he said.
This week is expected to be data-heavy, as key economic data, both local and overseas, are set to be released in the next couple of days.
Locally, investors are expected to look forward to the April inflation and the first quarter economic output on Tuesday and Thursday, respectively.
Overseas, the US Fed is set to hold its third policy meeting this year on Tuesday and Wednesday night, Philippine time.
Garnace said investors will be closely watching the release of inflation and GDP figures, which could offer “clues on the policy direction of the Bangko Sentral ng Pilipinas (BSP).”
“Progress toward trade negotiations with the US is also expected to drive optimism,” Japhet Tantiangco, analyst at Philstocks Financial Inc., said.
Tantiangco noted that, from a chart perspective, the market is expected to test the validity of the 6,400 level after it was breached on Friday.
“If it manages to establish its ground at the said line, it will be converted into a support while the next resistance would be at the 6,800 level,” he said.
Online stock trading platform 2tradeasia.com said investors are now beginning to price in the consumption boost from the election on May 12.
“Sectors with pricing power and leverage to household spending — namely consumer staples, retail, and discretionary — should have some lift as campaign spending spills over into second quarter toplines,” it said.
2tradeasia also underscored selective positioning in property and infrastructure-related names, especially those poised to benefit from a fiscal reset post-election.
However, it said investors should remain cautious of export-oriented stocks and rate-sensitive real estate investment trusts, given the lingering global rate and trade policy volatility.
