Stocks look to bounce back from 2-year low

MANILA, Philippines — Investors will seek direction from upcoming economic data as the local stock market hopes to exit from a recent slump that has led to its lowest level in a little over two years.

It was a bloodbath at the local bourse last week as the benchmark Philippine Stock Exchange index (PSEi) dropped for the fifth straight session on Friday at 5,862.59, its lowest finish in 27 months.

Week-on-week, the PSEi fell by 6.89 percent. This marks its fourth straight week of decline.

“The PSEi further dipped below 6,000 levels, following the release of full year 2024 GDP growth data, which came in below expectations at 5.6 percent. We also saw pressure on majority of the index names as we think some investors shifted to newly added names, China Banking Corp. and AREIT,” Unicapital head of research Wendy Estacio-Cruz said.

She said the PSEi is expected to range between 5,800 and 6,000 this week, with the market to remain prone to profit taking but supported by bargain hunting.

Investors will be looking forward to the release this week of the country’s inflation data for January as it could determine the Bangko Sentral ng Pilipinas’ next policy rate decision, she said.

First Metro Investment Corp. head of research Cristina Ulang said a benign inflation print for January – a deceleration from December’s 2.9 percent – can help stabilize the market.

“This week’s market action will be driven mainly by the Philippine January inflation report, US December jobs data and the evolving situation on tariffs,” China Bank Capital Corp. managing director Juan Paolo Colet said.

He said a relief rally is possible in the coming days barring any negative surprises.