Trading at the Philippine Stock Exchange is expected to remain volatile this week amid concerns about high inflation and rate and a possible slowdown in economic growth.
Analysts said investors are anticipating economic headwinds brought about by the spike in commodity and fuel prices, which could push inflation and interest rates higher.
These factors are dampening investors7 sentiments over the near term to medium period as these could lead to an economic slowdown.
If markets continue to fall, analysts are expecting the index to test the 6,300 level.
Online brokerage firm research analyst Niel Andrew Maderaje said investors are now awaiting if the Bangko Sentral ng Pilipinas will raise key policy rates in its upcoming meeting later this month.
“Global developments, such as new COVID-19 lockdowns imposed in China and US inflation rate for the month of May also added to investors worries,” said Maderaje.
The PSEI last week sank 3.1 percent to 6,530.04, while the broader All Shares Index dropped 2.5 percent after a global sell-off.
All major sub-indices ended in red, led by mining and oil which dropped by 4.9 percent; holding firms which slumped 4.4 percent; services which fell 4.2 percent; financials which declined 2.2 percent; property which lost 1.8 percent; and industrials which slipped 1.5 percent.