F. Yap Securities / 2TradeAsia

Funds flow could gear on select large caps poised to deliver solid 2Q results, especially those in the areas of

Sessions may move within a narrow band, given the Memorial Day holiday in the US.

Movements might be range-bound, pending fresh catalysts to pump up aggressive positioning.

Participants would monitor whether sentiment would sway to Wall Street’s weakness, or continue prior session’s strength.

Attention would be on the PSEi’s staying power above the 6,600 level, or retrace near 6,500.

Expect range-bound movements for now, as participants check for possible continuity of selling pressure especially on intra-day rallies.

Local equities may continue its ascent, as fund managers position in select stocks backed by improving momentum indicators.

Movements might be range-bound, as investors revisit corporate stories, specifically expansion plans & other M&A angles.

Sentiment might glide to US equities’ ascent, as slower inflation in April support hopes for the Fed’s rate cut.

Sessions might glide to Wall Street’s incline, given indications from Fed chief Powell on interest rates.

Sessions might move sideways, possibly with an upward bias, as investors sift through select shares with attractive valuation.

The week’s attention would be on the local central bank’s policy meeting, specifically on officials’ outlook on interest rates given the latest April inflation & 1Q24 GDP data.

Slower year-on-year (YoY) GDP growth comparison is expected, with high base effect for 1Q23.

After April’s latest CPI, participants will be heeding for the release of 1Q24 GDP data (coming from 1Q23 GDP of +6.4%, 4Q23 GDP of +5.6%).

April’s inflation print (3.8% vs. March’s 3.7%), would bring the four-month average to 3.425%, compared to prior year’s 7.875%.