Stocks waiting for holiday cheer

MANILA, Philippines — Not much activity is expected in the local stock market this shortened trading week, with investors seen maintaining their cautious stance as they wait for catalyst to provide the holiday cheer.

The Philippine Stock Exchange index failed to hold its ground above the 6,000 level last Friday, sliding by 1.92 percent week-on-week to 5,920.87.

The broader All Shares index likewise fell by 1.08 percent week-on-week to 3.397.72.

Unicapital Securities head of research Wendy Estacio-Cruz said that investors took profits last week ahead of a holiday-thinned week and the release of fourth quarter consumer confidence data.

This week, Estacio-Cruz expects the index to trade between 5,900 and 6,100, with the market looking ahead to upcoming Philippine data releases, including the November Philippine budget balance on Dec. 23 and the trade balance on Dec. 26.

On the US front, she said investors are awaiting the release of the initial Q3 2025 GDP reading on Dec. 23.

With the week being a shortened one due to the holidays, Philstocks Financial research manager Japhet Tantiangco, for his part, said that investors are expected to maintain their cautious stance.

“Investors may sell positions to shield themselves from any possible negative developments over the holidays. Investors are also expected to watch out for fresh leads,” Tantiangco said.

“On a positive note, the local currency’s appreciation, if it continues, is expected to provide support to the local bourse. Given all of these, the market could move sideways,” he said.

Tantiangco said that the local market is still at bargain levels, trading with a price-to-earnings ratio of 9.9 times last Friday, which was below its last five years’ average of 17.3 times.

Chartwise, Tantiangco said that the local market broke below the 6,000 level as well as the 10-day and 50-day exponential moving averages last week.

He said the local bourse may test the validity of its breach of these lines this week.