Bearish sentiment to cloud market

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March 23, 2026 | 12:00am

MANILA, Philippines — The local stock market is expected to continue to be weighed down by lingering uncertainties this week, with investors likely to stay on the sidelines.

The Philippine Stock Exchange index (PSEi) finished a shortened trading week in the red last Thursday, down by 0.67 percent week-on-week to 6,018.62, as ongoing geopolitical tensions pushed the peso to a new all-time low.

“This came after the US Fed kept rates steady and raised its inflation forecast amid potential oil price shocks from the Iran conflict, dampening hopes for near-term easing,” Unicapital Securities head of research Wendy Estacio-Cruz said.

“We think ongoing geopolitical tensions will remain an overhang, with persistent inflation and global uncertainties likely to keep financial conditions tight and cap near-term upside,” she said.

Philstocks Financial research manager Japhet Tantiangco said with its decline last week, the local market is now at cheaper levels.

As of last Thursday’s closing, he said the PSEi is trading at a price-to-earnings ratio of 10.1x, below its five-year historical average of 14.4x.

Tantiangco said the local market is still expected to have a bearish default this week amid the elevated oil prices and weakness of the peso, both of which are expected to raise the country’s inflation.

“Investors are expected to continue monitoring the situation in the Middle East as well as the government’s response to our current economic challenges,” Tantiangco said.

“Any developments that would signal a near end for the war is expected to be received positively. However, lack of such or a further escalation of the conflict is expected to drag the market lower,” he said.

According to Tantiangco, the 6,000 support line will be tested further in the coming days.

Immediate support is seen at 6,000, while resistance is seen at 6,150.

“Black Swan events come and go, and they necessitate adaptive pivots to safety and cash while volatility and fear rule market psyche. This time, this is a war of attrition where the primary catalyst for a market recovery is a clear signal of de-escalation,” 2TradeAsia.com, the online arm of F. Yap Securities Inc., said.