The Philippine Stock Exchange (PSEi) ended the week higher by 1.87% (+117.41 points) to close at 6,404.11, as investors looked beyond renewed US-Iran tensions and instead focused on improving US inflation.
Better-than-expected US inflation data, which cooled to 3.5% in June (May: 4.2%; estimates: 3.8%), eased concerns over further US Fed tightening and boosted global risk appetite, lifting sentiment toward Philippine equities.
Optimism was further reinforced by expectations that Philippine manufacturing will continue to expand, supported by lower oil prices that could help reduce operating costs. Meanwhile, Bangko Sentral ng Pilipinas (BSP) data showed that Philippine banks’ assets grew 11.7% year-on-year (y/y) and 1.1% month-on-month (m/m) to PHP 30.4 trillion as of end-May 2026, reflecting continued growth in the country's banking sector.
This week, we expect the local bourse to trade lower with a cautious bias as investors assess escalating tensions in the Middle East. Over the weekend, the US launched another round of military strikes against Iran’s coastal surveillance and air defense infrastructure, while Iran's Supreme Leader Mojtaba Khamenei criticized repeated US violations of their memorandum of understanding (MOU), keeping geopolitical risks elevated.
On the domestic front, the lack of major economic catalysts may keep market direction largely driven by corporate developments. Investor focus is expected to shift to the upcoming 2Q 2026 earnings season, with results and management outlooks likely to influence stock-specific performance and broader market sentiment.
Resistance: 6,450/6,500
Support: 6,250/6,300
The PSEi has crossed above the 6,400 level, gaining 1.87% w/w to close at 6,404.11 (+117.41 points). The index continues to trade above its key moving averages (MAs), indicating sustained bullish momentum. Meanwhile, the MACD remains above the signal line, supporting the ongoing uptrend. However, with the RSI approaching overbought territory, the index may experience a slight pullback or consolidation in the near term.
Accumulating select value stocks on slight pullbacks for more attractive entry points is advisable.
Citicore Renewable Energy Corp. (CREC) | BUY ON BREAKOUT | CONSENSUS TARGET PRICE: PHP 5.05
Citicore Renewable Energy Corp. (CREC) has secured a PHP 4-billion loan from Land Bank of the Philippines (LandBank) to accelerate completion of two solar projects through its subsidiary, Citicore Solar Embedded Inc. The proceeds will fund the construction of two 41 megawatt (MWp) solar power plants.
Accumulate CREC once it breaks above its 50-day MA at PHP 4.56 to confirm bullish momentum. Take profits at PHP 5.02 and set stop-loss limits below PHP 4.33.
SP New Energy Corp. (SPNEC) | BUY | NO CONSENSUS TARGET PRICE
Meralco PowerGen Corp. (MGEN), SP New Energy Corp.’s (SPNEC) controlling shareholder, has inaugurated Phase 1 of MTerra Solar, touted as the world’s largest integrated solar power and battery energy storage system (BESS) facility. SPNEC’s role as the proponent of MTerra Solar strengthens its exposure to the Philippines’ energy transition and the accelerating buildout of large-scale renewable energy infrastructure.
Accumulate SPNEC at current levels at PHP 1.50. Take profits at PHP 1.65 and set stop loss limits below PHP 1.42.
MREIT, Inc. (MREIT) | BUY | FMSEC TARGET PRICE: PHP 15.10
Megaworld Corp. (MEG) raised PHP 5.6 billion through a series of block sales of its stake in MREIT Inc. (MREIT) to partially fund the next phase of its township developments, ahead of the REIT’s planned Wave 5 asset infusion. We view MREIT as well positioned to sustain its dividend profile, supported by the continued expansion and diversification of its asset base.
Accumulating at current levels near the 200-day MA at PHP 13.90 is advisable. Take profits at around PHP 15.20 and set a stop-loss at around PHP 13.00.
