US inflation data due this week could fan investor concerns and further weigh on the stock market, analysts said.
The benchmark Philippine Stock Exchange Composite Index (PSEi) closed Friday at 6,589.88 and down 0.5 percent from the previous week and extending a run of week-on-week declines.
With the 6,600 support level having been breached, Philstocks Financial Inc. senior research analyst Japhet Tantiangco said failure to regain lost ground could lead to a decline to 6,400 territory.
US inflation going higher than January's 6.4 percent, meanwhile, could underscore continued tightening by the US Federal Reserve and put pressure on share prices and the peso, he added.
'At home, investors may also take cues from our foreign trade and OFW (overseas Filipino worker) remittance data for cues,' Tantiangco continued.
'A wider balance of trade deficit and weak remittance data may also weigh on our local currency's trading which in turn is seen to have negative spillovers on the market.'
January trade data will be released on March 14 while January remittance figures will be issued March 15. US inflation for February will be announced March 14, US time.
'After a series of hawkish comments from no less than the Fed's Powell ... attention will turn to the US inflation data for February this coming week,' online brokerage 2TradeAsia.com said, referring to US central bank chairman Jerome Powell's testimony before Congress last week.
'This will likely be the final puzzle piece needed to gauge the next rate change as Powell hinted at more aggressive rate hikes. With recession fears back on the table, brace for more volatility down the line,'it added.
The Fed is scheduled to discuss policy on Feb. 21-22.
With local inflation also remaining elevated 'with ... fluctuations that are unique to the Philippines' and the Monetary Board also set to meet on March 23, 2TradeAsia said 'there should be some investor anxiety heading into the midyear of 2023.'
'In the meantime, stick to reliable value plays to offset the added unease of interest rate and inflation risk in the short-term,' it added.
The market's immediate support was seen at 6,400 with resistance at 6,700.