Investors are set to take positions ahead of President Ferdinand Marcos Jr.’s State of the Nation Address (SONA) on Monday afternoon and the US Federal Reserve’s rate decision at midweek.
“Investors will be watching the SONA for plans on inflation and growth, as well as corporate earnings and the PMI release for economic signals,” Philstocks Financial’s Japhet Tantiangco said.
Last week, the benchmark PSEi climbed 1.74 percent to close at 6,413.18, while the broader All Shares index rose 3.24 percent to 3,796.87. Foreign investors were net buyers, registering P340.15 million, though year-to-date flows remain net negative at P41.69 billion.
Tantiangco said the local market remains undervalued, trading at a price-to-earnings ratio of 11.1X — below the five-year average of 17.3X.
Unicapital Securities’ Wendy Estacio-Cruz expects the index to trade between 6,400 and 6,500 points, with attention turning to the US Fed’s policy path. “There’s slim chance of a rate cut this week, but the outlook for two cuts later this year hinges on inflation easing and softer data,” she said.
Online platform 2TradeAsia.com flagged global uncertainty as markets weigh signals from the Fed, political pressure and inflation data.
“The real test comes in the next two months, with two job reports and CPI prints likely to sway sentiment,” it said.
The analyst from the platform advises staying defensive: “Prioritize high-liquidity, domestically focused value stocks. Be ready for pivots if inflation surprises. Markets favor the prepared.”
