Market Outlook

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.

Volatile sessions are seen, as local participants prepare for the long weekend break.

The PSEi closed around the mid-6900s at 6944.76 (+0.80%).

Activity might be range-bound, as some participants might seize on the local market’s recent incline to profit-take.

Having trounced past the 6,800 barrier, participants’ attention may be pegged on the PSEi’s ability to march towards the 7,000 zone.

The PSEi rose by +3.00% w/w to close at 6,847.37 pts.