Market Outlook

The market might take its cue from Wall Street’s ascent, with very few macro leads available locally.

A key vulnerability is the proximity to a death cross, with the 50-day moving average nearing the 200-day moving average, which could signal a bearish trend if crossed.

Reinforced support from the BSP for the likelihood of August’s rate cut may support sentiment for local equities.

The spotlight is on local monetary authorities’ policy meeting, with consensus skewed for another status quo.

The index closed at 6299.05, within a range of 6272.46-6307.51.

Local equities may continue to advance for the third straight session, as some investors position in select large-caps.

Participants are likely to monitor continuity of yesterday’s recovery, especially for select sectors that led the rise (I.e., property & services).

The PSEi closed sharply at 6158.48, a volatile session within 6158.48-6394.33.

The PSEi rose by 1.33% w/w to close at 6,518.76 (+85.66 pts).

Caution might be the main theme this week with the quarter-end portfolio closing.

Sentiment might take its cue from DJIA’s ascent, on prospects for the Fed’s policy easing & reports of accommodative policies from China.

Participants might bid for time to check on turnover improvement, supporting local benchmark’s sideways movement.

The PSEi closed at 6368.80, showing a range between 6343.69 and 6459.38.

Another range-bound session & selective trade might persist, unless significant build-up in turnover occurs for local equities.

The PSEI is still clearly under the spell of the bears.