F. Yap Securities / 2TradeAsia

Expect volatile trades with the month-end portfolio closing, especially with the effectivity of MSCI’s rebalancing.

Another range-bound session is seen, as buyers position on intra-day dips to position in select shares poised to finish stronger this year.

Participants are seen to give weight on Fed chair Powell’s statement last Friday, supporting expectations for policy easing measures.

Volatile sessions are seen, as local participants prepare for the long weekend break.

Activity might be range-bound, as some participants might seize on the local market’s recent incline to profit-take.

Having trounced past the 6,800 barrier, participants’ attention may be pegged on the PSEi’s ability to march towards the 7,000 zone.

Investors might take heart on the local central bank’s 25bps rate cut move yesterday, which would aid capex rollout initiatives among listed firms.

Attention is on BSP’s policy meeting, with emphasis on its outlook on inflation & interest rates.

Sentiment might take its cue from Wall Street’s overnight ascent, as softer PPI gauge for July has strengthened expectations for a Fed rate cut.

Movements would likely be range-bound for now, as most fund managers heed for latest economic data in the US that could influence the Fed’s sequel policy actions.

Higher sessions are seen, as expectations build for a rate cut consideration on or before BSP’s policy meeting on 15 August.

Choppy sessions are seen given the month-end portfolio closing, while attention is set whether local gauges could keep its poise above the 6,600 marks.

Participants might focus on the US economy’s 2Q GDP, which came in at a faster clip vs. 1Q (+2.8% vs +1.4%), as well as views on the timing of the Fed’s policy easing cycle.

Eyes are set whether the PSEi would continue its recent strength, or sellers might seize on this move to pocket gains.

Sentiment might take its cue from Wall Street’s ascent, as expectations build for consideration of less-restrictive monetary policies by the Fed for the remainder this year.