Investors are expected to tread cautiously this week as the Philippine Stock Exchange index (PSEi) enters a familiar soft patch amid persistent selling pressure, macroeconomic uncertainty and a clouded global outlook.
Following losses in six of the past seven trading days, the PSEi dropped 1.67 percent to close at 6,306.13 on Friday, while the broader All Shares slipped 1.19 percent to 3,751.67.
The market’s fall was briefly halted by bargain hunting on Friday, Japhet Tantiangco, Philstocks Financial research manager, said.
“With last week’s drop, the market is now back in the 6,150 to 6,400 trading range,” Tantiangco said, citing investor unease following the President Ferdinand Marcos Jr.’s State of the Nation Address, uncertainty over the US Federal Reserve’s next move and global trade tensions.
The local market’s valuation has slipped to a price-to-earnings (P/E) ratio of 10.9x, well below the five-year historical average of 17.3x and the regional average of 17.2x, which analysts said suggests potential room for upside if sentiment turns.
Foreign investors were net sellers, unloading P468.39 million worth of shares. Foreign buying reached P12.66 billion versus P13.13 billion in sales.
Tantiangco said investor sentiment this week will hinge on the release of key economic data: • July inflation (due Tuesday); • June labor force figures (Wednesday); and • Second quarter GDP (Thursday).
“A well-contained inflation print and faster GDP growth than Q1’s 5.4 percent could help lift the market,” he said. “Peso movement will also be watched closely — any rebound may support equities, while further depreciation could drag sentiment.”
Online brokerage 2TradeAsia.com said the release of second quarter corporate earnings will also provide fresh direction amid a murky macroeconomic environment.
“We expect some topline growth from election-related spending and summer tourism, which could drive short-term rotation into consumer discretionary, gaming, and adjacent sectors,” it said.
However, recent GDP downgrades, June’s inflation uptick, and July’s typhoons have disrupted capital formation and threatened consumer confidence, 2TradeAsia noted — developments that may push significant revisions to 2026 economic forecasts.
Despite these headwinds, the firm said forward-looking valuations remain attractive, particularly for companies with strong fundamentals and earnings momentum.
“Selective buying of quality names may offer upside as second-quarter results begin to paint a clearer picture,” it added.
