The Philippine Stock Exchange index (PSEi) fell 1.92% week-on-week (w/w) to close at 6,281.01 (-123.10 points), weighed down by continued US strikes against Iran. The local bourse opened the week under heavy selling pressure amid escalating tensions in the Middle East, with investors remaining cautious as the conflict intensified.
In the commodities market, Brent and West Texas Intermediate (WTI) crude both surged back to USD 96.80 and USD 90.47 per barrel, respectively. Local pump prices followed suit with sharp increases, reigniting inflationary pressures nationwide.
The local bourse is expected to trade sideways with a downward bias this week as geopolitical tensions remain elevated. Although the strikes have paused for two days, investors are likely to remain cautious given the ongoing uncertainty surrounding the situation. Midweek focus will shift to the US Federal Reserve’s interest rate decision, which is expected to set the tone for global markets and the USD/PHP exchange rate.
On the local front, attention will also turn to 1H 2026 earnings results, which could ease selling pressures amid the challenging macro backdrop. Another round of fuel price hikes is expected, with diesel likely to rise by PHP 6.00–6.50 per liter and gasoline by PHP 5.50–6.00 per liter, which is likely to stoke fresh inflation concerns.
Resistance: 6,300/6,350
Support: 6,150/6,200
The PSEi pulled back below the 6,300 level, declining 1.92% w/w to close at 6,281.01 (-123.10 points). Despite the retreat, the index remains above its key moving averages (MAs), suggesting the broader near-term uptrend remains intact. However, momentum appears to be moderating, as the index trades closer to its 20-day MA and the RSI continues to ease. Meanwhile, the MACD has crossed below its signal line, indicating a potential continuation of the pullback in the near term.
Accumulating select value stocks on slight pullbacks for more attractive entry points is advisable.
Atlas Consolidated Mining and Development Corp. (AT) | BUY ON PULLBACKS | NO CONSENSUS TARGET PRICE
Atlas Consolidated Mining and Development Corp.’s (AT) 2Q 2026 gross revenues grew 88.5% y/y to PHP 8.5 billion, while 1H 2026 gross revenues rose 64% y/y to PHP 12.98 billion on the back of higher metal prices and higher ore grades.
This led 1H 2026 net income to turn positive to PHP 4.6 billion from PHP 653 million last year. Looking ahead, the copper market remains supported by rising demand from AI-related infrastructure investments and ongoing supply disruptions at major global mines.
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 on current levels at the 200-day MA at PHP 13.90 is advisable. Take profits at around PHP 15.20 and set a stop loss limit at around PHP 13.00.
