F. Yap Securities / 2TradeAsia

Light trades may persist, with some fund managers on the US Labor Day holiday.

Expectations for slower August inflation would strengthen expectations for policy easing from BSP, supporting deceleration in business costs.

Participants are likely to be watchful on month-end closing, especially for prospective market-on-close (MOC) price action.

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.