The PSEi snapped its five-week winning streak, closing at 6,413.10 (-0.81% week-on-week), as the market navigated a mix of global and local headwinds. Throughout the week, investors digested the following key events and data releases: (1) Moody\u2019s downgrade of the US credit rating, which spurred a rise in US Treasury yields; (2) the Philippines’ balance of payments (BoP) deficit widening by 29.9% y\/y to USD2.56bn in Apr 2025 (Mar 2025: USD1.97bn; Apr 2024: USD639mn); and (3) President Marcos\u2019 call for courtesy resignations from Cabinet members and state economic managers as part of a \u201cbold government reset.\u201d Despite the cautious backdrop, the market found support late in the week as local investors scooped up oversold heavyweights across key sectors.<\/p>\n\n\n\n
This week, we expect the market to trade sideways with a slight upward bias as sentiment is likely to improve. Initially, US President Donald Trump\u2019s threat of a 50% tariff on European Union (EU) goods starting 01 Jun 2025 and a 25% levy on imported iPhones raised concerns of renewed trade tensions that had recently shown signs of easing. However, both the US and EU agreed to delay implementation until 09 Jul 2025 to allow more time for negotiations, offering a temporary reprieve that may help ease market jitters in the near-term. Meanwhile, geopolitical tensions may escalate further, with ongoing developments in the Russia-Ukraine conflict to dampen sentiment. On the data front, investors will be closely monitoring the second reading of US 1Q GDP and Core PCE Price Index releases, which could influence expectations for the Federal Reserve\u2019s upcoming policy decisions. Locally, April trade figures, bank lending, and money supply data are scheduled for release, while the MSCI quarterly rebalancing may trigger increased volume and volatility toward the end of the week.<\/p>\n\n\n\n
Recommendation<\/strong><\/td>| Buy<\/td><\/tr> | 1-Year Target Price<\/strong><\/td> | PHP 330.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n | <\/div>\n\n\n\n JFC is trading below its 100-day and 200-day moving averages (MA), indicating long-term bearish sentiment. After hitting a new 52-week low of PHP203.00 on 07 Apr 2025, the stock has been on an uptrend, closing above its 20- day MA, with both RSI and MACD near neutral levels. Therefore, given the risk is skewed towards the upside prior to the rebalancing date, accumulating at current levels is advisable.<\/p>\n\n\n\n Accumulating JFC at current levels is advisable. Set stop limit orders at PHP212.00 and take profits at PHP265.00. For long-term investors, we have a fundamental target price of PHP330.00.<\/p>\n\n\n\n <\/div>\n\n\n\n 2. Wilcon Depot Inc. (WLCON)<\/h3>\n\n\n\n
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