Philippine stocks may struggle to keep their upward momentum this week, analysts said, as the absence of fresh positive catalysts and heightened geopolitical tensions in the Middle East could weigh on investor sentiment. The Philippine Stock Exchange index (PSEi) closed 1.24% higher on Friday at 6,404.11, while the broader all-shares index also posted gains, according to a report by BusinessWorld.
The recent rally was driven largely by bargain hunting and expectations of a rate cut by the Bangko Sentral ng Pilipinas, but these factors may have already been priced in. With no major economic data releases or policy announcements expected in the near term, traders are likely to take a cautious stance.
Renewed hostilities in the Middle East also pose a risk to global markets, potentially dampening risk appetite. Analysts said the PSEi could find support at 6,300 and resistance at 6,500, with trading volumes expected to thin as the market searches for new leads.