Philippine shares are poised for cautious trading as investors await the release of July inflation figures and second‑quarter GDP data, while geopolitical tensions in the Middle East continue to weigh on market sentiment.
On Friday, the Philippine Stock Exchange index slipped 1.09 percent to 6,236.44, and the all‑shares index fell 0.59 percent to 3,395.05. This marks the benchmark’s lowest close in three weeks.
Compared to the week ending July 24, the index dropped 44.57 points, underscoring a sustained downward trend.
Market analysts highlight a cautious mood and pressure from major heavyweights, noting that the ongoing conflict in the Middle East has spurred an oil rally and pushed the peso to a new low.
Key data releases this week include July inflation on August 5 and Q2 GDP on August 7. Expectations suggest that a slowdown in headline inflation could lift market confidence, whereas a rise in core inflation may raise concerns. A stronger Q2 growth figure could provide a boost, while a further decline would likely dampen investor sentiment.
Recent polls project a median headline inflation rate of 6.4 percent for July and a Q2 GDP growth estimate of 2.8 percent. Higher inflation could justify a potential rate hike, whereas lower GDP growth might temper equity exposure.
The ongoing U.S.–Iran tension remains a risk factor, as any escalation could push global oil prices higher and further impact the local market. The index’s recent pullback after testing the 6,400 level signals negative momentum, with support around 6,150 and resistance near 6,400.
