THE Philippine stock market could remain under pressure this week as investors contend with a record weak peso, elevated oil prices and persistent interest rate concerns alongside lingering domestic growth risks.
The benchmark Philippine Stock Exchange index (PSEi) closed at 5,976.77 last Friday, up 0.3 percent week-on-week but still below the key 6,000 resistance level.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the market corrected slightly as multiple headwinds weighed on sentiment.
He noted that the peso had hit a new all-time low of P61.721 against the dollar, raising import costs and inflation risks and dampening investor confidence.
Softer first-quarter corporate earnings also contributed to a pullback in equities, he added.
Ricafort noted volatility in foreign flows, with mild net selling recorded on May 15, and also said that domestic political developments may be distracting policymakers from advancing key reforms.
Online brokerage 2TradeAsia.com, meanwhile, said sentiment had turned more fragile with US-Iran risks resurfacing.
It added that rising global yields and tighter capital flows were continuing to constrain risk appetite while domestic liquidity remained sidelined as investors awaited clearer macroeconomic signals.
Japhet Tantiangco, research manager at Philstocks Financial Inc., said the market could face profit-taking pressure after a two-week rally.
He added that concerns over inflation, elevated oil prices, peso weakness, and political uncertainty could also keep weighing on sentiment amid intermittent support from bargain hunting.
Analysts said the PSEi was continuing to face strong resistance at 6,000, with immediate support at 5,900.
They advised investors to stay defensive and focus on quality, yield-generating stocks amid continued volatility.
