Strong earnings, peso may push up PHL shares

PHILIPPINE STOCKS could extend their momentum this week amid strong corporate results and a robust peso, although geopolitical concerns over the United States’ and Israel’s attack on Iran may affect sentiment.

On Friday, the Philippine Stock Exchange index (PSEi) went down by 0.21% or 14.22 points to end at 6,611.24, while the broader all shares index dropped by 0.34% or 12.47 points to close at 3,641.24.

Still, week on week, the PSEi surged by 146.12 points from its Feb. 20 finish of 6,465.12.

“Optimism for momentum revival lifted the local bellwether, backed by fresh corporate earnings releases,” 2TradeAsia.com said in a market note.

It said a resurgence in foreign fund flows and a stable peso backed the PSEi’s recent rebound. “This momentum is fundamentally supported by the ongoing fourth-quarter/full-year 2025 earnings season… This wave of recent affirmation of the local economic and corporate earnings trajectory further rehabilitates international investor perception.”

“Investor sentiment is seen to be improving as reflected in the local market’s rise last week. This comes mainly due to optimism on corporate results and the peso’s improved position. Trading activities have also strengthened, reflecting active market participation,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco likewise said in a Viber message.

On Friday, the peso closed at P57.665 per dollar, down by 5.7 centavos from its P57.608 finish on Thursday, data from the Bankers Association of the Philippines showed. But week on week, the peso jumped by 48.5 centavos from its P58.15 close on Feb. 20.

For this week, Mr. Tantiangco said Philippine shares could rise further. “Investors are still expected to monitor fourth quarter and full-year 2025 corporate reports. Optimistic anticipation of such following the robust results seen recently may still give support to the local market. The peso’s appreciation, if it continues, is also expected to help the local bourse.”

“However, the escalation of tensions in the Middle East following the US and Israel’s attack on Iran is expected to pose downside risks on the local market.”

Israel said it launched another wave of strikes on Iran on Sunday, as Iranians grappled with uncertainty after the killing of their supreme leader in US and Israeli strikes that threaten to destabilize the wider Middle East, Reuters reported.

Several loud blasts were heard for a second day on Sunday in the area of regional business hub Dubai and over Qatar’s capital of Doha, witnesses said, after Iran launched retaliatory strikes on the neighboring Gulf states in response to the strikes.

Mr. Tantiangco said the PSEi’s recent climb puts its current trading range at 6,550-6,800 trading range. “The key for the market now is to sustain its ground at the 6,550 level. The bourse is trading above its 10-day, 50-day, and 200-day exponential moving averages, reflecting positive momentum.”

For its part, 2TradeAsia.com placed the PSEi’s immediate support at 6,300 and resistance at 6,700. — A.G.C. Magno