Market to consolidate amid holiday trading break

PHILIPPINE SHARES could end the year on a weak note as trading activity is expected to remain tepid amid this holiday-shortened trading week.

On Friday, the bellwether Philippine Stock Exchange index (PSEi) rose by 0.39% or 23.73 points to end at 6,065.64, while the broader all shares index went up 0.49% or 17.13 points to close at 3,464.66.

Week on week, the PSEi jumped by 144.77 points from its 5,920.87 close on Dec. 19.

“The PSEi ended higher despite a relatively quiet session, with the index trading within a narrow range for most of the day before the yearend,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message on Friday.

“The local bourse rebounded during the shortened trading week, reclaiming the 6,000 level on holiday optimism and bargain-hunting,” 2TradeAsia.com said in a market note.

Philippine financial markets were closed on Dec. 24-25 for the Christmas holidays.

Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said the local market closed higher as investors took positions before the yearend.

“However, trading has been anemic, with net value turnover at P2.66 billion. This shows that many investors were staying on the sidelines, focused on the Christmas holidays,” he said in a Viber message.

For this week, activity may remain thin amid the lack of leads and the extended trading break, Mr. Limlingan said. The market will be closed again on Dec. 30 and 31 and Jan. 1 for Rizal Day and the New Year holidays. Trading will resume on Friday (Jan. 2).

“Limited volume and cautious positioning likely suggest investors are waiting for clearer catalysts before making more decisive moves ahead of the yearend,” he said.

“The thin value turnover seen also shows investors’ low confidence towards the local economy’s prospects for 2026, causing them to stay out of the market for the time being,” Mr. Tantiangco likewise said.

2TradeAsia.com said the PSEi is likely to close 2025 “on a whimper” even amid year-end window dressing and as technical indicators and valuations point to a gradual rebound in the first half of 2026.

“Easing inflation, further BSP (Bangko Sentral ng Pilipinas) rate cuts, and improving governance support a base-case rebound, aided by resilient consumption and potential foreign inflows on peso stability,” it said.

A low interest rate environment will be favorable for risk assets, it said.

“However, the delayed signing of the 2026 budget (now expected in early January) risks a brief reenacted regime, potentially delaying infrastructure spending and triggering short-term liquidity squeezes into the first quarter, which we already noted is a component of output that is desperately needed to reaffirm growth trajectory.”

It put the PSEi’s immediate support at 5,800, resistance at 6,000, and secondary resistance at 6,100. — Alexandria Grace C. Magno