Market Outlook

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.

Selective trades may prevail, as investors check for possible improvement in the previous sessions’ frail turnover.

Sessions might mimic yesterday’s movement, ahead of the Independence Day break tomorrow.

Participants’ attention may be drawn to the Federal Open Market Committee (FOMC) meeting on 11-12 June, within a shortened 4-day trading week.

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

The index has been consolidating around the 200-MA areas, as it closed yesterday on a positive note.

Participants would monitor continuity of the latest ascent, while heeding for those that might opt to lock-in gains.

Local gauges might move above the 6,550 mark, with 5-month inflation averaging 3.52% (vs. prior year’s 7.52%).

Sentiment might take its cue from Wall Street’s ascent, as hopes for the Fed rate cut was supported by the latest jobs data.

Similar movements might be seen Tuesday, with sessions moving within range, capped by final-minute boost.

The PSEi dropped by 2.82% w/w to close at 6,433.10 (-186.79 pts).

Continuity of Friday’s MOC-boost is seen to continue, with the backdrop of lessrestrictive monetary policies later this year.