Market Outlook

Participants might weigh whether supply pressure would prevail, or for sentiment to glide to Wall Street’s incline (DJIA +0.54%, Nasdaq Comp. +1.35%).

Sessions might round-up on the plus-side, as fund managers seize the recent dip to move in index-tied shares.

The index has closed in the red in yesterday’s trading, inching only a shy away into the 6,700 territory.

Light sessions are seen with most fund managers off on their holiday break in the US.

Gauges might stabilize above the 6,600 mark for now, as participants monitor developments at the crude market and its impact to inflation.

The PSEi inched up by +0.20% w-o-w, hovering above the 6,600 support level as well as key moving averages (20-day, 50-day, 100-day, and 200-day).

Market watchers are expected to watch local gauges’ climb towards 6,700 as fund managers check on continuity of wider net foreign buying & accelerated momentum via improved turnover.

Sentiment might sway to Wall Street’s strong advance (DJIA +0.58%, Nasdaq Comp. +2.2%), as momentum builds for less-restrictive monetary policies.

Second-wind response to tamer inflation for December (3.9% vs. Nov.’s 4.1%) might be seen, as participants carefully monitor the PSEi’s return to the 7,000 zone (achieved last 23 Jan. 2023).

Opening 2024 with a bang, the index concluded the 1st trading day of the year in the green.

Participants will monitor continuity of yesterday’s strong net foreign buying momentum, especially for large caps that led the ascent.

The PSEi pulled back by -0.78% w-o-w after hovering near overbought conditions.

Light trades are seen with most foreign investors still on their New Year holiday.

Today mark’s the final trading day of the year, with the PSEi closing the penultimate trading day of the year up by +0.87% to 6,519.

Overall, expect optimism to prevail, anchored mainly on lessrestrictive monetary policies in 2024.