Philippine share prices are expected to trade sideways with a soft bias this week as investors weigh the impact of corruption scandals, a weakening peso and fresh global headwinds.
Philstocks Financial research manager Japhet Tantiangco said the market remains on a downward trend after the PSEi slipped 3.79 percent last week to 6,027.12 points from 6,264.49 the week earlier.
The broader All Shares dropped 2.57 percent to 3,644.8.
In the year to date, the benchmark is down 7.68 percent, two trading days before the third quarter closes.
“The local market is still moving with a bearish bias, forming a new lower low and even visiting the below-6,000 territory last week,” Tantiangco said.
He cited corruption controversies in flood-control projects and the peso’s weakness as lingering drags.
Bargain hunting may temper losses, he added, but “a strong rally is not yet expected until the market finds a strong positive catalyst.”
Foreign investors were net buyers of P6.36 billion last week, though year-to-date flows remain negative at P39.7 billion, according to exchange data.
Tantiangco said currency movements and long-term bond yields will continue to steer sentiment.
“Further peso depreciation could drive declines, while any rebound may help the market recover. Higher yields will weigh on stocks; lower yields could spark a climb,” he said.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said investors are also bracing for the impact of new US trade measures and a looming government shutdown.
US President Donald Trump has announced 100 percent tariffs on branded or patented drugs starting October 1 unless firms set up US plants, along with new duties of 50 percent on kitchen cabinets and bathroom vanities and 25 percent on heavy trucks.
“Threats of a US government shutdown are also weighing on sentiment,” Ricafort said, warning of added volatility if no budget deal is struck before October 1.
Key local data include the S&P Global Philippine Manufacturing PMI for September, due Wednesday.
