Stocks chasing catalysts to sustain momentum

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July 20, 2026 | 12:00am

MANILA, Philippines — Stronger catalysts will need to show up to support the market’s ongoing positive momentum following a successful return to the 6,400 level last week.

The Philippine Stock Exchange index went on a three-day winning streak last week, closing on a strong note last Friday at 6,404.11. Week-on-week, the benchmark index surged by 1.87 percent.

“Waning concerns over the Federal Reserve’s policy outlook following signs that price pressures in the US are easing is so far helping in keeping the market’s positive momentum. However, trading remains anemic implying that confidence remains weak,” Philstocks Financial research manager Japhet Tantiangco said.

Tantiangco said the US-Iran war remains the biggest downside risk to the local bourse.

He said the re-escalation of tensions between the two countries, which affects passage at the Strait of Hormuz, is pushing global oil prices higher again, threatening the Philippines’ inflation outlook.

Further, Tantiangco said relevant markets are still seen to be going against the local bourse with the Philippine peso remaining weak against the US dollar and the government bond yields at elevated levels.

If their positions are maintained this week, it is expected to pose a challenge against the local market, he said.

“The local market managed to rally for three straight weeks as investors took advantage of bargain opportunities. For this to be sustained, however, strong catalysts must be seen moving forward,” Tantiangco said.

“Without such, and with the headwinds at play, we may see a pull back for the local bourse this week. For a possible impetus, the market is expected to look toward second quarter corporate results,” he added.

For RCBC chief economist Michael Ricafort, major catalysts for the global and local financial markets would be developments or any progress, or lack thereof, on the negotiations on a more permanent US-Iran peace deal until around Aug. 17, especially in tackling key issues on Strait of Hormuz, Iran’s nuclear program and frozen funds, among others.

2TradeAsia.com, the online arm of F. Yap Securities Inc., recommends seizing on the current currency and interest rate stability to accumulate high-conviction energy and digital infra plays, including power-exposed holding firms and select telecom or property operators with active data center pipelines.

Meanwhile, it said caution should be exercised in high-multiple consumer names vulnerable to fuel price hikes as consumer price index would stay volatile given US-Iran’s ongoing rift.

“Tactically, we recommend avoiding high-multiple consumer names vulnerable to late-third quarter fuel price hikes. Instead, capitalize on the current currency and interest rate stability to accumulate high-conviction energy and digital infrastructure plays,” 2TradeAsia.com said.