Market Outlook

The index is now trading at its 50-d MA.

Eyes are set on the local central bank’s policy meeting today, whether or not it would second 26 October’s 25bps off-cycle rate hike.

The PSEi showed higher volume for yesterday compared to the day prior.

Focus will be on possible improvement in yesterday’s dismal turnover, ahead of latest inflation print in the US that might support expectations for the Fed’s next course on interest rates.

Sentiment might sway to Wall Street’s ascent, as portfolio repositioning builds ground for 2024.

The PSEi surged by +2.88% w-o-w, sustaining its rally the previous week. However, the volume remained tepid at P3.1bn.

The PSEI showed strength once again as it added +33.19pts or +0.54%, ending at 6,188.22 in yesterday’s trade.

Share prices would balance-off stronger-than-estimated 3Q GDP with the Fed’s reiteration to keep monetary policies tight to meet their inflation goal.

Market investors will get feelers on 3Q23 GDP results (from +4.3% in 2Q23), and balance prospects towards 2024.

The local bourse successfully rallied for the second straight day as the technical bounce in the market remained strong.

Follow-through response to tamer inflation in October might support sequel buying in equities.

The PSEi bounced back by +0.46% w-o-w, after hitting a year-to-date low the previous week.

Part of the climb might stem from month-end portfolio positioning.

If the PSEi recovers, it can retest previous support-turned-resistance at 6,200 to 6,400.

Volatility may continue, as market participants check whether monetary authorities would proceed with the earlier hinted off-cycle rate hike.