Market Outlook

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.

To break below 6k levels?

Participants might take their cue from Wall Street’s incline, as political headlines simmer in the Israel-Hamas rift.

Eyes are set whether some participants would seize on the bourse’s current state to buy into

The PSEi ended Friday at 6,142.90 (down by -1.23% or -76.26pts), breaking the 62H threshold.

The PSEi dropped by -1.97% w-o-w to close at 6,142.90, breaking below the 6,200 support level.

Raining reds? The PSEi ended on a red declining by -0.78% or -49.11pts to 6,219.16 yesterday.

The mood might stay cautious for now, with global investors attuned to headlines on the Israel-Hamas conflict, including results of Pres. Biden’s visit.