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Meta’s chatbot scandal is really a culture problem

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By Gautam Mukunda

“MOVE FAST and break things.” If there’s a single corporate motto you can identify off the top of your head, that’s probably the one. At this point, Meta Platforms, Inc. Chief Executive Mark Zuckerberg probably regrets its existence, but there’s plenty of evidence that he — and the company — are still okay with the idea of doing some damage on their way to success.

One of the most recent examples is a Reuters investigation, which found that Meta allowed its AI chatbots to, among other things, “engage a child in conversations that are romantic or sensual.” That reporting was a topic at a Senate hearing last week on the safety risks such bots pose to kids — and underlines just how dangerous it is when AI and toxic company cultures mix.

Meta’s chatbot scandal demonstrates a culture that is willing to sacrifice the safety and well-being of users, even children, if it helps fuel its push into AI. The technology’s proponents, including Zuckerberg, believe it has limitless potential. But they also agree that it will, as the Meta CEO has said, “raise novel safety concerns.” One reason the risks from AI systems are so hard to manage is that they are inherently probabilistic. That means even small changes to their inputs can produce large changes in their outputs. This makes it wildly difficult to predict and control their behavior.

Here’s where the importance of a “safety culture” comes in. At companies that have one, safety is always the first priority. Everyone in the organization has the unquestioned right to raise concerns about safety, no matter how junior they are or how inconvenient or expensive resolving the problems they raise might be.

If you know exactly what a system will do, you can push it close to the edge. But with a technology as unpredictable as AI, companies must be more cautious, steering away from gray areas. And that level of caution is a product of culture, not formal rules.

Boeing used to have a culture like that. When it was building the 707, for example, chief test pilot “Tex” Johnston recommended a very costly redesign of the plane’s tail and rudder to correct an instability that could occur if a pilot exceeded the maximum bank angle Boeing recommended in the manual. The chief engineer’s response? “We’ll fix it.” And Boeing assumed the entire cost of the change, rather than push it off onto its customers. Decades later, Boeing management’s obsessive focus on cost-cutting eroded that focus on safety so much that critical safety flaws in the 737 Max-8 were ignored until two planes crashed and 346 people died.

The Reuters report provides a window into what a safety culture is not. It includes content from a Meta document titled “GenAI: Content Risk Standards,” which explicitly states that an AI chatbot may “describe a child in terms that evidence their attractiveness” or tell someone with Stage 4 colon cancer that it “is typically treated by poking the stomach with healing quartz crystals.” Meta revised the document after Reuters asked about it, but that’s not the point. Documents don’t create culture. They are a product of culture. And one so comfortable with harming its users in the pursuit of growth or profits makes a dangerous outcome inevitable.

Meta’s chatbots will only be safe if the company commits to reforming its culture. What would that effort look like? One model could be the transformation Anglo American CEO Cynthia Carroll made at the South African mining giant from 2007-2013. When Carroll took over, the company was averaging 44 fatalities every year. By the time she stepped down that number had dropped by 75%. Her change effort is such a gold standard that it is taught at business schools around the world.

Carroll began by shutting down the company’s Rustenberg platinum mine and retraining everyone who worked there. It was the world’s biggest platinum mine and had five fatal accidents in her first months as CEO. The shutdown cost Anglo American $8 million per day; real money, even for a company of its size.

This was an unambiguous signal to the whole company. Talk, after all, is cheap. Any CEO could say “safety is our number one priority” and be ignored by workers who had heard it before. But putting $8 million per day on the table was a costly — and therefore credible — signal. Carroll backed it up by keeping up the pressure for six more years, putting safety at the center of everything from reformulating promotion and compensation standards to relations with unions and the government.

Zuckerberg could do something similar. He should start by freezing the rollout of Meta’s AI chatbots until it is possible to guarantee that any child could use one in total safety. (Most people would agree, I think, that keeping kids from being propositioned by AI is the bare minimum.) And he could put real force behind that by lobbying for strict government regulations on AI chatbots, and steep penalties for violating them. Meta could reorient pay and promotion so that AI safety, not usage or profitability, is the key factor in determining employee rewards.

If you’re struggling to imagine the Meta CEO doing any of this, that’s probably because it would absolutely have near-term costs. In the long run, however, I’d argue Meta would benefit. Think, for example, of the famous case where Johnson & Johnson pulled Tylenol off the shelves when some of the bottles were poisoned. In the short term, it cost the company millions. In the long run, it secured its reputation as a trusted, and even loved, company — a commodity money can’t buy. It’s also worth remembering that companies can’t survive without a social license to operate; in other words, without the public’s acceptance. It’s hard to think of a better way to lose that than a rogue AI that endangers kids.

Then there’s the vicious fight for AI talent. As a top artificial intelligence scientist, wouldn’t you be more likely to choose an employer that will encourage you to prioritize ethics and safety in your work? At this moment when every major AI company is facing scrutiny, taking the lead on safety could actually be Meta’s best path to taking the lead on AI.

BLOOMBERG OPINION

BSP Survey: Property Prices Rise by 7.5% in Q2

Philippine housing prices increased in the second quarter as consumers were less pessimistic about purchasing residential properties, the Bangko Sentral ng Pilipinas (BSP) reported. Read the full story.

BSP Survey: Property Prices Rise by 7.5% in Q2

Yields on gov’t debt end mixed amid volatile trade

YIELDS on government securities (GS) traded at the secondary market ended mixed last week amid a rise in US yields and a weakening peso as US Federal Reserve officials signaled caution on future rate cuts.

GS yields, which move opposite to prices, inched up by an average of 1.15 basis points (bps) week on week, based on the PHP Bloomberg Valuation Service Reference Rates as of Sept. 26 published on the Philippine Dealing System’s website.

At the short end of the curve, yields on the 91-, 182-, and 364-day Treasury bills (T-bills) went down by 1.04 bps (to 4.9354%), 3.41 bps (5.1635%), and 4.34 bps (5.2607%), respectively.

Meanwhile, at the belly, rates mostly went up. Yields on the three-, four-, five-, and seven-year Treasury bonds (T-bonds) rose by 1.52 bps (5.6685%), 3.49 bps (5.7650%), 4.8 bps (5.8392%), and 6.23 bps (5.9328%), respectively. On the other hand, the two-year paper saw its rate go down by 0.81 bp to 5.5478%.

Lastly, at the long end of the curve, the 10- and 20-year notes climbed by 6.23 bps and 0.04 bp to yield 6.0263% and 6.3449%, respectively. Meanwhile, the rate of the 25-year T-bond inched down by 0.11 bp to 6.3434%.

GS volume traded declined to P34.38 billion on Friday from P43.82 billion a week prior.

Traders said that yields at the short end mostly went down to reflect bets on the Bangko Sentral ng Pilipinas’ (BSP) policy path.

“The yield curve steepened week on week as investors focused demand at the short end, reflecting sustained conviction in the BSP’s easing cycle,” the first bond trader in a Viber message.

“[Fed Chair Jerome H.] Powell’s remarks about balancing inflation and labor market risks reinforced the ‘higher-for-longer’ stance. This means that the front end was relatively anchored given expectations that the BSP will hold rates steady for now,” the second trader said.

Last week, BSP Governor Eli M. Remolona, Jr. said they could lower borrowing costs further as early as October if the economy shows signs of losing momentum.

The Monetary Board last month slashed benchmark rates by 25 bps for a third straight meeting to bring the policy rate to 5%. This brought cumulative cuts since August 2024 to 150 bps.

Mr. Remolona has described the policy setting as a “Goldilocks rate,” balancing inflation and growth. “We’re in the Goldilocks zone, I would say,” he said. “So, if the forecast stays… we’re going to stay where we are in terms of the policy rate. There may be small adjustments — a pause or an ease — but more or less, we’re going to be at the same range.”

He said 25-bp reductions at their October and December meetings are “possible but not likely.”

Meanwhile, the Fed this month lowered its target rate by 25 bps to the 4%-4.25% range, which was its first cut since December. This brought its total reductions since September 2024 to 125 bps. Its “dot plot” showed projections of two more rate cuts this year.

Mr. Powell said on Tuesday the central bank needed to continue balancing the competing risks of high inflation and a weakening job market in coming interest rate decisions, even as his colleagues staked out arguments on both sides of the policy divide, Reuters reported.

“Meanwhile, the belly to the long end followed the rise in US yields, adding upward pressure and reinforcing the market’s steepening bias,” the first trader said. “We also saw bonds taking cues from US Treasuries, where yields climbed after stronger-than-expected data on home sales, durable goods, and GDP (gross domestic product). The numbers pointed to resilience in the US economy and led markets to rethink the pacing of US Fed rate cuts.”

The result of the Bureau of the Treasury’s dual-tenor bond auction last week came within market expectations and supported the belly of the curve at the start of the week, but yields eventually climbed due to the peso’s weakness, the trader added.

“The risk-off tone from geopolitical concerns and cautious Fed speak weighed on emerging-market assets. The dollar-peso exchange rate hovering above P58 also kept offshore accounts defensive, supporting demand for shorter-dated government securities,” the second trader said.

On Friday, the peso closed unchanged at P58.10 per dollar due to the Fed’s cautious signals and as domestic concerns weighed on market sentiment.

“Attention was on the Bureau of the Treasury’s (BTr) fourth-quarter borrowing plan. The program came in lighter than the previous quarter, which was already expected. While this setup was bond-friendly, sentiment was tempered by corruption headlines onshore that pressured the peso and may have also weighed on appetite for government bonds,” the first trader added.

The government is looking to borrow P437 billion from the domestic market in the fourth quarter, the BTr said in a notice last week. Broken down, it aims to raise P262 billion through T-bills and P175 billion from Treasury bonds T-bonds.

For this week, the trader said GS yields may continue to track the movement of US Treasuries.

“Any sell-offs in government bonds are likely to be shallow, as the outlook still looks constructive given expectations of further BSP cuts and the lighter issuance program. At the same time, political noise and peso swings are things to watch. We also see the bond curve likely continuing to steepen in the near term,” the first trader said.

The second trader said bond yields may move sideways to up due to the Fed’s “higher-for-longer” policy stance and as market players position before the release of September Philippine inflation data next week.

“Investors should monitor the peso’s performance versus the US dollar as further weakness could add pressure on long end yields,” the second trader said. — Heather Caitlin P. Mañago

The Hyundai Venue returns

The Hyundai Venue is back, priced from P778,000. — PHOTO FROM HYUNDAI MOTOR PHILIPPINES, INC.

THE MOST RECENT staging of the Hyundai Mobility Experience was held at the Bonifacio High Street. Aside from the growing hybrid lineup of the South Korean car maker comprised of the Kona Hybrid, Elantra Hybrid, Tucson Hybrid, Palisade Hybrid, and Santa Fe Hybrid, Hyundai Motor Philippines, Inc. (HMPH) also displayed the brand’s flagship electric vehicles, the all-new Ioniq 9 and new Ioniq 5, and the Creta N Line.

But, perhaps more significantly, customers got to see the return of the Hyundai Venue, an entry-level SUV based on Hyundai’s proven global platform. In a release, HMPH said that the Venue “is built for versatility, to match large-scale competitive markets such as the Philippines.” It gets a “premium look,” underpinned by elements such as LED lenticular rear taillights, and headlights equipped with static bending to illuminate the road ahead with every turn of the vehicle.

The Venue’s top-of-the-line variant comes with a keyless push-to-start function for a more smooth and convenient engine start. On the dashboard is an eight-inch display audio system with Wireless Apple CarPlay and Android Auto. In addition, a 4.2-inch digital instrument cluster provides essential driving information.

The Hyundai Venue is powered by a 1.6-liter engine mated to a six-speed automatic transmission “offering smooth and responsive performance.” A 1.6-liter six-speed manual transmission variant is also available. The model is priced as follows: Venue 1.6 GL 6MT (P778,000), Venue 1.6 GL 6AT (P898,000), and Venue 1.6 GLS 6AT (P998,000).

Customers can avail of cash discounts of up to P46,000 through Hyundai Finance, when purchases are made through the brand’s bank partners: EastWest, BDO, and BPI. Additionally, a down payment of as low as P28,000 can be made alongside a monthly amortization as low as P15,000 through the banks’ financing plans.

US will distribute aid to farmers from tariff revenue

REUTERS

WASHINGTON — US President Donald J. Trump said the US will use tariff proceeds to fund aid to farmers.

“We’re going to take some of that tariff money and give it to our farmers,” Mr. Trump said at the White House.

The US farm economy is slumping this year due to low crop prices and trade disputes. Republican lawmakers have warned that farmers are facing significant losses and have urged the administration to issue aid by the end of the year.

Agriculture Secretary Brooke Rollins has said that the administration is weighing an aid program modeled after the approach taken by the previous Trump administration, when farmers were given billions to offset losses from a trade war with China.

Farmers are “for a little while going to be hurt, until it kicks in, the tariffs kick in to their benefit,” Mr. Trump said.

“Ultimately, the farmers are going to be making a fortune,” he said. — Reuters

Aboitiz group says foreign firms drive occupancy at Batangas’ LIMA Tower One

ABOITIZECONOMICESTATES.COM

ABOITIZ INFRACAPITAL, Inc. (AIC), the infrastructure subsidiary of the Aboitiz group, said over 12,000 square meters (sq.m.) of office space at LIMA Tower One in Batangas have been leased, citing strong demand from foreign companies seeking to expand in the country.

“A lot of interest is coming from companies that are based internationally and are looking for a world-class office building in the province that’s outside the CBDs (central business districts),” Monica L. Trajano, vice-president for Commercial Strategy at AIC Economic Estates, said on the sidelines of the Arangkada Forum last week.

LIMA Tower One, an 11-storey premium office building with flexible, high-performance spaces, is the first of seven towers at the heart of LIMA Estate’s Biz Hub in Batangas.

It has secured green building certifications such as WELL and BERDE (Building for Ecologically Responsive Design Excellence). The office building is 50% occupied.

Over the weekend, electronic commerce fashion brand REVOLVE opened its office in LIMA Tower One, taking up quarter of a floor.

Aboitiz Power Corp. and JERA Co., Inc. (JERA) have also set up a training facility at LIMA Tower One.

“That pretty much is an exchange of talent between Japan and the Philippines in terms of operating the power plants that Aboitiz Power and JERA own and operate,” Ms. Trajano said. “So, they already have had their first set of students come in.”

Ms. Trajano expressed optimism about demand for LIMA’s office towers, citing the growing return to office, as well as nearby residential and commercial developments.

“For anybody that locates within our estates, there’s that connectivity that we’re providing there, we’re developing our infrastructure to be able to support that, and we’re also integrating residential [developments],” she said.

“We build residential communities that are within or pertinent to our estates.”

LIMA Estate is a 1,000-hectare (ha) mixed-use development owned by the Aboitiz group. It hosts about 4,000 households and is registered under the Philippine Economic Zone Authority. — Beatriz Marie D. Cruz

Brighter smile, thanks to purple

SINCE LAST YEAR, Colgate has been using color theory to fix yellow stained-teeth through its Colgate Optic White Purple Toothpaste. On Sept. 15, they released the Colgate Optic White Purple Serum for a more intense teeth whitening remedy.

Yellow and purple are opposites on the color wheel; when merged, it appears white. For oral beauty, this means purple color-corrects yellow tones to appear white (a company statement emphasizes that it has temporary efficacy and varying results). Purple brighteners work by depositing a sheer violet tint on the tooth surface, effectively cancelling out yellowish hues through an optical illusion.

Carlo Isla, marketing director for oral care at Colgate-Palmolive Philippines told BusinessWorld during the launch in Whitespace, “Both will deliver,” speaking of the new serum and the toothpaste. “It’s a little bit leave-on, so you leave it for two minutes, and you can rinse it out.” He also said that the serum delivers by being of a different texture (it is more viscous), and of a deeper, more intense shade of purple. “The serum and the toothpaste work better together, though,” he added.

“The principal action of this really relies on the type of purple we use,” he said about the efficacy of the products. “What we are proud of, of our serum as well as our toothpaste, is that the shade of purple is specifically engineered to cover types of yellow stains.”

“Stains will be different for everyone,” he added.

What was noticed during the launch was that the toothpaste was marketed not as an oral health tool, but as a beauty product: the product’s face is Korean star IU. “What we realized globally, and this is a global trend, that there is a space, and there’s a need for, I guess, a layering of benefits,” said Mr. Isla.

While the toothpaste works as it should in cleaning in protecting teeth, the beauty component is a prominent add-on (the serum’s bottle warns that it is not to be used as a toothpaste alone). “It takes time for yellowing to change, but this can give you an instant correction — as you would do with other beauty and cosmetic products as well.”

Colgate Optic White Purple Toothpaste and Serum are available nationwide in leading groceries and beauty stores at P49 per tube SRP (37g). — J.L. Garcia

Environmental health and sustainability

STOCK PHOTO | Image from Freepik

Every Sept. 26, the world observes World Environmental Health Day, a reminder that a healthy environment is inseparable from public health. The occasion highlights the urgent need to address environmental risks that threaten communities and to promote actions that safeguard both people and the planet.

One of the most pressing challenges is plastic pollution, which harms human health across its entire lifecycle — from resource extraction and production, to use, and finally disposal. Mismanaged plastics contaminate ecosystems, worsen climate change, and jeopardize the systems that sustain well-being. Yet plastics remain indispensable in many areas of modern life, including healthcare, where they help ensure sterility, patient safety, and access to lifesaving medicines. Balancing these trade-offs requires science-based, evidence-informed approaches that protect health, maintain safety, and accelerate progress toward more sustainable solutions.

The innovative pharmaceutical industry has been proactively addressing its environmental footprint by adopting greener practices. Several companies are reducing plastic waste through recyclable and biodegradable packaging materials, while others are investing in green chemistry and continuous manufacturing to minimize environmental impact throughout the supply chain.

AstraZeneca, for example, redesigned its clinical trial packaging distribution system. Previously, bulky thermal boxes, each weighing 15 kilograms, were discarded after a single use. By working with a distribution partner to create a returns process, and even adding simple prompts like brightly colored instructions, AstraZeneca achieved a 98% packaging return rate across 35 countries. The result was that the reduced waste was equivalent to the weight of a Boeing 747 jumbo jet.

Meanwhile, Sanofi introduced a plastic-free influenza vaccine package made entirely of cardboard. The new design halves box size, optimizes storage, and cuts transportation needs by 30%. It also reduces the carbon footprint per box by 50% and lowers overall environmental impact by up to 50%.

Boehringer Ingelheim, guided by patient feedback, developed a reusable asthma inhaler that can accommodate up to six medication cartridges. The inhaler is propellant-free, producing 20 times fewer CO₂ emissions than conventional inhalers. By 2025, it is projected to prevent 776 tons of plastic waste or equivalent to over 77 million PET bottles and 14,300 tons of CO₂ emissions.

Also, GSK pioneered the UK’s first inhaler recycling program, “Complete the Cycle.” With more than 70 million inhalers prescribed annually in the UK, improper disposal posed serious environmental risks. By 2019, the scheme had already collected 2 million inhalers, while sparking broader conversations on creating a nationwide return system. Its success showed that patients, pharmacists, and healthcare providers can collaborate to reduce waste and greenhouse gases.

Novo Nordisk launched Returpen, a multistakeholder collaboration with Sanofi, Lilly, Merck, the Danish government, patient groups, and waste-management partners. The initiative tackles the challenge of recycling millions of injection pens used worldwide each year. Beyond recycling, Returpen is working to create an integrated, user-friendly solution for handling different types of medical waste, while ensuring compliance and sustainability across the supply chain.

These initiatives demonstrate that innovation in healthcare is not limited to new treatments. It also extends to how medicines are packaged, delivered, and disposed of, with sustainability at the core.

The industry is also engaged at the policy level. The International Federation of Pharmaceutical Manufacturers and Associations (IFPMA) represents the research-based sector in the Intergovernmental Negotiating Committee (INC), which is drafting a global plastics treaty. Adopted by the United Nations Environment Assembly (UNEA) in 2022, this proposed legally binding agreement aims to end plastic pollution by addressing its full lifecycle — from production to disposal. It seeks to protect health and ecosystems by promoting sustainable alternatives and fostering circular economies.

The pharmaceutical industry supports this treaty as a harmonized, global approach that balances environmental stewardship with patient safety. Companies are investing in greener products, sustainable production, and responsible distribution practices to deliver medical innovation in ways that are both effective and environmentally sound.

Protecting environmental health is inseparable from protecting human health. As these industry efforts show, progress depends on partnerships across governments, businesses, healthcare providers, and communities. By rethinking how products are designed, used, and recycled, it is possible to reduce waste, lower emissions, and build more sustainable health systems.

As the world confronts climate change and environmental degradation, the challenge is clear that safeguarding health requires safeguarding the environment. The pharmaceutical industry is committed to being part of this journey, helping ensure that the treatments and technologies people depend on today do not compromise the well-being of future generations.

 

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines, which represents the biopharmaceutical medicines and vaccines industry in the country. Its members are at the forefront of developing, investing and delivering innovative medicines, vaccines and diagnostics for Filipinos to live healthier and more productive lives.

BSP Survey: Business Sentiment Less Optimistic While Consumer Spending Seen to Increase in Q3

Philippine businesses turned less optimistic about the economy in the third quarter amid bad weather and sluggish demand during “ghost month,” a survey by the Bangko Sentral ng Pilipinas (BSP) showed. Read the full story.

BSP Survey: Business Sentiment Less Optimistic While Consumer Spending Seen to Increase in Q3

SSS partners with UnionBank for micro loan program

SSS FACEBOOK PAGE

THE SOCIAL SECURITY System (SSS) has partnered with Union Bank of the Philippines, Inc. (UnionBank) to launch a micro loan program to help boost workers’ access to credit.

The program called SSS LoanLite is targeted to be rolled out by the end of the year. Under the initiative, loans with terms from 15 to 90 days will be available, which are meant to help Filipino workers with their urgent financial needs.

“This will really help each Filipino, members of SSS, not to fall victim to loan sharks,” SSS President and Chief Executive Officer Robert Joseph M. De Claro said in a statement. “Through our partnership with UnionBank, we are taking a bold step toward protecting our members from exploitative lending and enhancing their access to responsible financial services.”

“We are also proud to be the first banking partner for SSS’ upcoming micro loan program — a short-term, socially responsive loan designed to support members in times of financial need,” UnionBank President and Chief Executive Officer Ana Maria Aboitiz-Delgado said.

The loanable amount under the program is at P5,000 to P20,000 and will depend on a member’s needs. They will have a rate of 8% per annum plus a service fee.

The application and approval process for the loan is fully digital, with the funds to be transferred directly to members’ UnionBank accounts or MySSS Cards.

SSS said they target to release P40 billion loans under the program within the next two years.

UnionBank’s net income fell by 40.54% year on year to P1.82 billion in the second quarter amid lower income from loans and higher provisions. This brought its first-semester profit to P3.25 billion, down by 38.86% from the same period last year.

Meanwhile, SSS posted a P1.13-trillion net loss in 2024, according to its financial statement posted on its website, wider than the P444.13-billion loss in 2023. However, before changes in policy reserves, it booked a net income of P90.25 billion last year, up from P83.13 billion in 2023. — A.M.C. Sy

How PSEi member stocks performed — September 26, 2025

Here’s a quick glance at how PSEi stocks fared on Friday, September 26, 2025.


PHL shares may extend slide on weak sentiment

BW FILE PHOTO

PHILIPPINE STOCKS may continue to decline this week as corruption concerns continue to weigh on market sentiment.

On Friday, the Philippine Stock Exchange index (PSEi) dropped by 0.25% or 15.16 points to close at a near six-month low of 6,027.12, while the broader all shares index decreased by 0.23% or 8.7 points to 3,644.80.

Week on week, the PSEi also fell by 237.37 points from its 6,264.49 close on Sept. 19 as it posted losses for five straight sessions.

“Following the prior week’s gain, the local bourse pulled back this week on lingering political uncertainties over investigations in flood control projects,” online brokerage 2TradeAsia.com said in a market report on Friday.

“The local market is still moving with a bearish bias, forming a new low and even visiting the below 6,000 territory last week. Corruption issues over the Philippines’ flood control projects and the peso’s weakening position against the US dollar continue to weigh on the bourse,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

The Justice department said on Friday that the National Bureau of Investigation (NBI) has recommended the prosecution of 21 individuals, including several lawmakers and officials of the Department of Public Works and Highways, over their alleged involvement in anomalous infrastructure projects.

Meanwhile, on Friday, the peso closed unchanged at P58.10 per dollar due to these corruption issues and reduced expectations of further US Federal Reserve rate cuts amid strong economic data.

For this week, Mr. Tantiangco said there could be some bargain hunting following the PSEi’s five-day slide.

“A strong rally is not yet expected, however, until the market finds a strong positive catalyst. Investors are also expected to continue dealing with the corruption issues of the country’s flood control projects,” he said. “Investors may also take cues from the movement of other relevant markets. The peso’s direction may still play a significant role in the market’s movement, with further depreciation causing a market decline and an appreciation causing a market rebound.”

The market may also react to the US consumer spending and personal consumption expenditures price index data released on Friday and the S&P Global Philippines Manufacturing purchasing managers’ index report set to come out this week, Mr. Tantiangco said.

“Chart-wise, the local market remains on a downtrend. In last week’s trading, the market fell after failing to hold its position above its 50-day exponential moving average, meaning the line remains as a resistance. On a positive note, the market is still holding its ground above 6,000, meaning the said level remains as a support,” he said.

2TradeAsia.com said the market may remain volatile and further test its support levels. It put the PSEi’s immediate support at 6,000 and secondary support at 5,800, while its resistance is pegged at 6,150-6,200. — Alexandria Grace C. Magno