F. Yap Securities / 2TradeAsia

Participants will monitor if sentiment would glide to Wall Street’s latest retreat, after Fed chair Powell doused-off expectations for a rate cut in March.

Another volatile session is seen, as participants take on feelers if sentiment would sway to Wall Street’s ascent, or for profit-taking to prevail.

Expect volatility in the coming sessions, with January’s month-end portfolio closing.

Monitoring may continue given recent sessions’ light turnover, including supply pressure during final-minute close.

Sessions are likely to continue its upward momentum, as fresh hands take local equities closer to 6,700.

Participants might weigh whether supply pressure would prevail, or for sentiment to glide to Wall Street’s incline (DJIA +0.54%, Nasdaq Comp. +1.35%).

Sessions might round-up on the plus-side, as fund managers seize the recent dip to move in index-tied shares.

Light sessions are seen with most fund managers off on their holiday break in the US.

Gauges might stabilize above the 6,600 mark for now, as participants monitor developments at the crude market and its impact to inflation.

Market watchers are expected to watch local gauges’ climb towards 6,700 as fund managers check on continuity of wider net foreign buying & accelerated momentum via improved turnover.

Sentiment might sway to Wall Street’s strong advance (DJIA +0.58%, Nasdaq Comp. +2.2%), as momentum builds for less-restrictive monetary policies.

Second-wind response to tamer inflation for December (3.9% vs. Nov.’s 4.1%) might be seen, as participants carefully monitor the PSEi’s return to the 7,000 zone (achieved last 23 Jan. 2023).

Participants will monitor continuity of yesterday’s strong net foreign buying momentum, especially for large caps that led the ascent.

Light trades are seen with most foreign investors still on their New Year holiday.

Overall, expect optimism to prevail, anchored mainly on lessrestrictive monetary policies in 2024.