Stock markets in the Philippines are expected to face continued pressure this week as investors weigh rising geopolitical tensions and inflationary risks while anticipating the President’s State of the Nation Address.
On Friday, the Philippine Stock Exchange index closed at 6,281.01, slipping 0.03% or 2.11 points. The all‑shares index fell 0.13% or 4.59 points, ending at 3,422.48.
Week‑on‑week, the index dropped 123.1 points from its July 17 close of 6,404.11.
Market sentiment has been dampened by the surge in global oil prices, with Brent crude climbing to $100 per barrel. The local currency has weakened to record lows, further eroding investor confidence.
Ongoing hostilities in the Gulf region have also influenced market performance, as traders remain cautious ahead of forthcoming corporate financial releases.
Volatility in crude oil pricing and foreign exchange rates is likely to persist, driven by strategic choke points extending from the Strait of Hormuz to the Red Sea.
The conflict in Iran continues to serve as a key trading driver, potentially sustaining elevated oil prices and inflation within the country.
Combined with a slowing economic outlook and persistent inflation, these factors heighten downside risks for the local bourse.
The Philippine peso has fallen to a new record low of 61.85, amid a stronger dollar, rising import bill expectations, and emerging tariff threats from the United States.
A 12.5% tariff has been imposed on Philippine goods following concerns over forced labor practices in the country.
The peso’s depreciation introduces additional inflationary pressure and constrains the central bank’s capacity to ease policy. Import reliance on foreign fuel means crude price spikes trigger secondary effects across transportation, agriculture, and consumer spending. With headline inflation hovering above 6%, the central bank is likely to maintain a hawkish stance.
Investors are watching the upcoming State of the Nation Address for potential policy actions aimed at addressing growth and inflation challenges.
Given the prevailing headwinds, the market may trend downward this week, with support projected near 6,150 and resistance around 6,400.
