PHILIPPINE STOCKS may extend their climb this week on hopes for positive inflation and gross domestic product (GDP) data.

On Friday, the bellwether Philippine Stock Exchange index (PSEi) rose by 0.89% or 56.87 points to end at 6,411.86, while the broader all shares index climbed by 0.37% or 13.82 points to 3,741.12.

This was the PSEi’s best close in nearly four months or since the 6,496.32 finish on Jan. 10.

Week on week, the PSEi surged by 2.28% or 143.11 points from its 6,268.75 finish on April 25, marking its third straight week of gains.

Online brokerage 2TradeAsia.com said in a market note that strong corporate results supported the market last week.

Growing bets for an earlier-than-expected rate cut by the Federal Reserve following weak US GDP data also helped in the PSEi’s rise, it added.

“The US economy contracted by 0.3% in the first quarter of 2025… Markets were caught off-guard, having expected modest growth, and are now recalibrating expectations for the Fed, with rate cuts back on the table as early as third quarter,” 2TradeAsia.com said.

For this week, the market will focus on the release of Philippine April inflation data on May 6 (Tuesday) and the GDP report on May 8 (Thursday), analysts said.

“Investors are expected to look forward to our April inflation rate for clues. An inflation print biased to the lower end of the BSP’s (Bangko Sentral ng Pilipinas) 1.3%-2.1% projection is expected to give sentiment a boost,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

A BusinessWorld poll of 14 analysts yielded a median estimate of 1.8% for April headline inflation. If realized, the April consumer price index (CPI) would be steady from the March print and be slower than the 3.8% clip logged in the same month in 2024.

This would also mark the ninth straight month that the CPI settled within the BSP’s 2-4% annual target.

“Investors are also expected to continue monitoring the situation on global trade. Progress towards trade negotiations with the US are also expected to drive optimism in the local bourse,” Mr. Tantiangco added.

“The local market is expected to test the validity of its breach of the 6,400 resistance level. If it manages to establish its ground at the said line, it will be converted into a support while next resistance would be at the 6,800 level.”

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort put the PSEi’s minor support at 6,205-6,300 and minor resistance at 6,490.

For its part, 2TradeAsia.com placed the benchmark’s support at 6,000 and resistance at 6,400.

“The market remains in a consolidation phase, but not without opportunity. Domestic flows remain healthy, volatility is lower than in regional peers, and entry positions have established a ‘safer’ technical base,” it said. — Revin Mikhael D. Ochave