Market Outlook

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.

The PSEi extended its losing streak to four weeks and recorded its worst week YTD, declining by 4.31% w/w to close at 6,676.65 (-300.53pts).

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

Caution would still be the main theme, as prospective buyers wait for the sell-off to abate.

The PSEi dipped below its 6,600 mark, closing down -2.34% intraday, as more investors continued withdrawals this week.

The index is now at its 5 consecutive red candle close as bears dominate the market.

Caution may continue to rule, as fund managers sift through Trump’s key policies, as well as latest interim results from large-caps (i.e., flattish on TEL, weakness in URC).

Equities investors will monitor fiscal policies in Trump administration, and its impact to US inflation & regional trade.

The The PSEi dropped by 2.32% w/w, closing at 6,977.18 (-165.78pts).

Participants will monitor sentiment to Donald Trump’s presidential victory, especially on the aspect of international trade & other geopolitical headlines.

The PSEI closed at 7,257.94 yesterday, up +1.71% intraday, trading just below its 9-MA and showing signs of bullish momentum.

Sequel rallies might be seen, as investors glide to Wall Street’s overnight incline.

Another subdued yet volatile session is seen, with most global investors on the watch for the US election & the Fed’s policy meeting.

Participants should expect volatility this week, with the US presidential election and the outcome of the Fed’s policy meeting.