Market sentiment is likely to stay pessimistic this week, driven by global economic worries stemming from the newly announced US tariff policies.

The Philippine Stock Exchange index (PSEi) ended last week on a downtrend, closing at 6,084.19 on Friday, marking a 1.03% decline from the previous week, as investors reacted to the US’s reciprocal tariff measures, which are expected to adversely impact the global economy.

Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., noted that the PSEi declined further last week following US President Donald Trump’s announcement of unexpectedly severe tariffs on American trading partners. The move rattled markets, prompting investors to shift toward safer haven assets.

“Continue to expect sideways to down between 5,800 and 6,300 levels in the near-term,” Ravelas commented.

Whereas Cristina Ulang, head of research at First Metro Investment Corp., stated that ongoing tariff uncertainties, along with speculation over how the Bangko Sentral ng Pilipinas (BSP) will respond, could lead to volatile and directionless trading in the market this week, The Philippine Star reports.

“We anticipate the index to continue trading within the 5,800 to 6,300 range, as the impact of tariffs imposed by the US government has yet to be fully felt. Investors are closely monitoring the BSP’s upcoming monetary policy meeting on April 10,” Unicapital Securities head of research Wendy Estacio-Cruz stated.

However, Philstocks Financial research manager Japhet Tantiangco believes the market is now reaching more attractive levels from a fundamental perspective following four consecutive weeks of decline. He suggested that this could lead to bargain hunting during this week’s trading.

“Expectations that the BSP will cut policy rates in their upcoming meeting following the further decline in inflation last March may give sentiment a boost,” he said.

March inflation came in at 1.8%, surpassing the consensus estimate of 2% and falling within the central bank’s forecast range of 1.7 to 2.5%.

“However, the global economic concerns amid the US’ tariff policies are still expected to weigh on the market, tempering the potential rise. Shocks in the form of new tariff announcements from the US pose downside risks that may pull the market lower,” Tantiangco stated.