Stocks to stay sideways ahead of key data

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February 2, 2026 | 12:00am

MANILA, Philippines — The local stock market is expected to remain on defensive mode this week, with investors waiting for the results of upcoming local economic data for a clearer direction.

The Philippine Stock Exchange index (PSEi) posted a strong rebound last Friday following a steep drop the previous day due to the country’s lackluster full year 2025 gross domestic product (GDP) growth.

Despite Friday’s 1.7-percent jump, the PSEi still finished 0.07-percent lower week-on-week to 6,328.97.

First Metro Investment Corp. head of research Cristina Ulang said the market showed resiliency last week.

“Sell off on GDP undershoot looked priced in. More foregin  buying could lift market on hopes of more aggressive BSP rate cut,” she said.

Investors are now seen looking forward to the release of January inflation data and the unemployment rate on Feb. 5 and 6, respectively, according to Unicapital Securities head of research Wendy Estacio-Cruz.

“For the week ahead, the PSEi is expected to trade sideways with a cautious bias with investors favoring defensive and fundamentally strong names amid lingering concerns over growth momentum and policy direction,” she said.

Philstocks Financial research manager Japhet Tantiangco said the local market is still deemed attractive at its current position.

As of Friday’s closing, he said the market’s price-to-earnings ratio stands at 10.5 times, below its historical average of 14.4 times.

This week, Tantiangco said the underperformance of the local economy last quarter and the pessimistic views on how it would perform this year may still weigh on the market.

“Investors are expected to watch out for the S&P Global Philippines Manufacturing PMI as this would give fresh clues on the state of the economy. Investors are also expected to watch out for the upcoming February inflation data. Hopes that the BSP (Bangko Sentral ng Pilipinas) would cut policy rates in their February meeting may give the market support,” he said.

Analysts see immediate support at 6,300, while major support is at 6,150. Resistance, meanwhile, is seen at 6,400 to 6,450.