Market Outlook

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.

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.