BARGAIN-HUNTING could lift the stock market back to the 7,000 level this week, analysts said, but continuing jitters over possible policy shifts under a second Trump presidency will likely limit any gains.

The benchmark Philippine Stock Exchange index (PSEi) closed Friday at 6,977.18, down 2.3 percent from a week earlier, as investors reacted to slower-than-expected third-quarter economic growth and fears over US President-elect Donald Trump's campaign pledge to raise tariffs on all imports.

Philstocks Financial Inc. research manager Japhet Tantiangco noted that foreign selling had led to the break below 7,000 but added that the PSEi was now at "more attractive levels" following a three-week drop.

"A strong ascent is not expected yet, however, as investors may continue to deal with our slow Q3 economic growth, weak peso, and the challenging global economic outlook due to the possibility of protectionist policies in the US amid a Trump presidency," he said.

Robust third-quarter corporate results and hopes of continuous monetary policy easing by the Bangko Sentral ng Pilipinas (BSP) could help provide lift, and "investors may also look towards our foreign direct investment and OFW (overseas Filipino worker) remittance data for clues on the local economy," Tantiango added.

The BSP will release OFW remittance data for September this Friday.

Tantiangco said the PSEi may retest 7,000, and "if the market is able to get back above the said level, it will still be considered as its support while immediate resistance would be at the 7,100-7,150 range."

"If it fails to do so, however, then 7,000 would be its resistance while next support would be at the 6,700-6,800 range."

Unicapital Group research head Wendy Estacio-Cruz, meanwhile, said "the PSEi closed below 7,000 levels on Friday as the Fed (Federal Reserve) rate cut failed to provide some relief amid the uncertainties over the Trump presidency."

"We believe concerns over inflation and global uncertainties should persist over the next weeks, making markets more volatile," she added.

"We see the index ranging from 6,900 to 7,100 next week," she concluded.

Online brokerage firm 2TradeAsia.com said that "movement in global capital markets have all been tinted by the outcome of the US elections, as Donald Trump completes his return to the White House."

"Noise over US election results overshadowed the Fed's expected 25-basis point cut, alongside strong possibilities of another similarly sized cut in December," it added.

2TradeAsia.com still sees the BSP again lowering interest rates next month, although "with weaker certainty in the face of a sharply weaker peso relative to the US dollar [and] slightly quicker inflation in October."

The currency continues to trade in P58:$1 territory, closing at P58.26 last Friday. Consumer price growth, meanwhile, rose to 2.3 percent last month from 1.9 percent in September.

"Expect jitters to stay until policy shifts — and their impact on value — are clearer," 2TradeAsia said.

It noted that the current situation was similar to the first Trump presidency, which saw market volatility and escalating geopolitical tensions.

"One of the lessons of that era [is that] there can be profit made amid market seesaws and multiple inflection points in the global economy," the online brokerage said, adding that strong volatility could be fought with "just as strong risk management."

Analysts said the impact of US protectionism would extend beyond the stock market.

It will have "negative repercussions on the global economy, ours included," Tantiangco said, with the US being the largest buyer of Philippine-made goods.

Maybank Investment Banking Group, meanwhile, said that there could be dramatic policy changes under Trump, which "could have far-reaching consequences for the world."

"More protectionist US policies could dampen Asean exports, reduce FDI (foreign direct investments), and produce a major deflationary shock as China's excess supply is diverted," it said.

Estacio-Cruz said "a Trump presidency could bring economic challenges for the Philippines, especially in trade, investment, and remittances."

"Tighter US immigration policies might also limit job opportunities for Filipino immigrants, which could lower remittances, which is a critical source of income for many Philippine households," she added.

Read The Rest at :