Share prices seen staying under pressure this week

Market Under Pressure Share Prices Slip Below 6,000 Amid Geopolitical Te
Tensions and Rate Hikes

The Philippine stock market has entered a bearish phase, with the benchmark
benchmark Philippine Stock Exchange index (PSEi) slipping below 6,000 last 
week. Analysts point to rising interest rates, geopolitical tensions, and c
currency weakness as key headwinds.

Market Volatility

The PSEi closed at 5,943.49 on Friday, falling by 0.93% week on week. Accor
According to Philstocks Financial Inc. research manager Japhet Tantiangco, 
the market has entered a bearish phase, extending a losing streak as invest
investors digest uncertainties stemming from the Middle East war and a Bang
Bangko Sentral ng Pilipinas (BSP) rate hike.

Valuations

Despite the current weakness, valuations have become more attractive, with 
the market trading at a price-to-earnings ratio of around 10x – its histori
historical average of 14.4x. Tantiangco notes that despite being at a barga
bargain, the local market is still seen to have a bearish default in next w
week's trading.

Geopolitical Risks

2TradeAsia.com echoes the cautious outlook, noting that the index's drop be
below 6,000 reflects sustained downward pressure following the central bank
bank's hawkish shift. The online broker notes that the immediate tightening
tightening of credit conditions is a headwind for local equities, one that 
will likely stick.

Thin Market Participation

The brokerage also points to thinning market participation and continued fo
foreign selling, albeit at a slower pace, as investors remain wary of risks
risks tied to elevated oil prices and global uncertainty. Michael Ricafort,
Ricafort, chief economist at Rizal Commercial Banking Corp., notes that the
the market's decline also tracks the peso's weakness and rising crude oil p
prices, alongside hawkish signals from the BSP.

Global Developments

Ricafort adds that the lack of progress in US-Iran negotiations and the con
continued closure of the Strait of Hormuz have kept global markets on edge,
edge, contributing to volatility in equities. Analysts say the market's dir
direction is likely to be dictated by developments in the Middle East as we
well as upcoming economic data releases and the result of a US Federal Rese
Reserve policy meeting later this week.

Conclusion

In conclusion, the Philippine stock market is expected to remain under pres
pressure this week, with share prices staying under pressure due to rising 
interest rates, geopolitical tensions, and currency weakness. As investors 
navigate these uncertain times, it's essential to stay informed and adapt t
to changing market conditions.

I hope you find this blog post informative and helpful in understanding the
the current state of the Philippine stock market. If you have any questions
questions or need further clarification on any of the points I made, please
please don't hesitate to reach out.

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.