Market Outlook

Expectation build-up for a December rate cut from the Fed might support buy positions in local equities.

Local investors will be on a wait-and-see mode, to check if supply pressures have softened, as several heed for prospective recovery rallies given the local bourse’s recent weakness.

The PSEi failed to climb above the 200-day-MA and declined by 2.45% w/w to close at 6,613.85 (-166.28) amid heavy foreign selling.

The PSEi declined to the 6,600 level, down -0.96% intraday, remaining below its 50, 100, and 200-day MAs.

Light sessions are seen, with fund managers off for the US Thanksgiving break.

Caution might dominate sentiment for local equities, following the previous session’s weak trail.

The PSEi gradually hovers above the 6,800 level closing at 6,806.86, down -0.63% with stock prices moving above the 200-day MA.

The PSEi snapped its 4-week losing streak as it recovered from oversold conditions, rising by 1.55% w/w to close at 6,780.13 (+103.48).

The PSEi gradually advanced to the 6,800 level from last week’s close, with stock prices moving above the 200-day MA.

Participants will monitor possible continuity of yesterday’s weak tone, while gauging prospective positioning in select large-caps.

Volatility may continue, as eyes are set whether local gauges would mimic prior session’s MOC-boost.

The PSEi rebound back to 6,800 mark, closing down +0.62% intraday, as market continues to recover from the the huge sell-off since last week.

Market participants may sift through on reactions to BSP’s possible ‘gradual’ rate cut, as well as its key directions that would be taken next year under a Trump-led administration.

Range-bound movements are seen, as participants might monitor possible supply pressure on intra-day strength.

Expect volatility in the coming days, given mixed views whether or not the Fed would continue with its nascent interest rate easing cycle.