Top influencers of investor sentiment this week will be the possible rate cut by the Bangko Sentral ng Pilipinas, overseas Filipino remittances, US-China trade talks, and the increasing tension in the Middle East.

“The local market managed to extend its climb last week, backed by optimism on US-China trade relation prospects and expectations of a BSP rate cut in their meeting this week.

“However, the market was not able to close above the 6,400 resistance line, reflecting lingering concerns over prevailing and new risks,” said Philstocks Financial Research Manager Japhet Tantiangco.

He noted that, while the market is seen to be undervalued, “Sentiment is expected to be challenged by ongoing Middle East tensions following Israel’s attack on Iran. A further escalation of such is expected to drive oil prices higher. This in turn may derail our country’s efforts against inflation. Pricing this in would be negative for the market.”

“Investors are also expected to watch out for the BSP’s policy meeting. More than the interest rate decision, investors are expected to watch out for clues on the BSP’s policy direction.

“Hints of more policy easing in the latter part of this year from the BSP may give sentiment a boost,” said Tantiangco.

Online brokerage 2TradeAsia.com said “Market volatility in the coming weeks will again gyrate on headlines, as U.S.-China trade negotiations take center stage once again.

“While the White House is expected to finalize a new trade posture with China by July, we reiterate that trade policy uncertainty compresses corporate planning cycles, elongates supply chain risk premiums, and reinforces caution in global capex.”

“The market remains tactically fragile, with price action seemingly dictated by event risk over macro trend conviction. Until greater clarity emerges on the trajectory of US-China trade negotiations and the Fed's response function, positioning should be built around optionality, balance sheet strength, and liquidity,” 2TradeAsia.com advised investors.

For stock picks, COL Financial recommends Jollibee Food Corporation since “We believe that the acquisition of Norang Tongdak positions JFC to scale more effectively in South Korea’s competitive market, with potential to drive business growth by leveraging its strong expertise in the fried chicken industry.

“This follows the company’s successful acquisition of Compose Coffee, which continues to significantly support the growth of its international segment and demonstrates its ability to potentially succeed in the region’s food and beverage space.”

Meanwhile, Unicapital Securities Research Analyst Jeri R. Alfonso recommends Universal Robina Corporation because “We believe the company is on track to hit its mid-single-digit bottomline growth guidance for 2025.

“The strong momentum from both branded consumer food Philippines and International in the first quarter of 2025 sets a solid base for its full year performance this 2025.”