Market Outlook

The index saw a wide trading range yesterday treading the 7100s territory at its peak and it closed off just around resistance levels at 6984.83 (+0.01%).

The PSEi closed up 41 basis points at 6,936.09, indicating resilience at recent peak levels.

The index has been moving sideways these past few days with the bulls keeping it afloat within range, closing just above the 6900s level.

The index has been moving sideways these past few days although it seems that the bears are beginning to take over as consecutive red candles fill the chart.

The mood could sway to Wall Street’s sharp decline, but several are likely to seize on this opportunity to position.

Light trades may persist, with some fund managers on the US Labor Day holiday.

Expectations for slower August inflation would strengthen expectations for policy easing from BSP, supporting deceleration in business costs.

The PSEi slipped by 0.93% w/w to close at 6,897.54, snapping a three-week winning streak after failing to breach the 7,000 level.

The index slipped -0.96% to 6,891.55, but momentum is still kicking, with RSI at a solid 60.43.

Participants are likely to be watchful on month-end closing, especially for prospective market-on-close (MOC) price action.

Expect volatile trades with the month-end portfolio closing, especially with the effectivity of MSCI’s rebalancing.

The PSEi narrowly inched towards the 7000s level yesterday closing up +0.16% to 6,973.41 as investors started to rebalance ahead of the end-of-month closing.

Another range-bound session is seen, as buyers position on intra-day dips to position in select shares poised to finish stronger this year.

Participants are seen to give weight on Fed chair Powell’s statement last Friday, supporting expectations for policy easing measures.

The PSEi rose by +1.67% w/w to close at 6,961.96 pts.