F. Yap Securities / 2TradeAsia

Attention is set whether local gauges would scale back to 6,500, while waiting for June’s inflation data this Friday.

The market might take its cue from Wall Street’s ascent, with very few macro leads available locally.

Reinforced support from the BSP for the likelihood of August’s rate cut may support sentiment for local equities.

The spotlight is on local monetary authorities’ policy meeting, with consensus skewed for another status quo.

Local equities may continue to advance for the third straight session, as some investors position in select large-caps.

Participants are likely to monitor continuity of yesterday’s recovery, especially for select sectors that led the rise (I.e., property & services).

Caution might be the main theme this week with the quarter-end portfolio closing.

Sentiment might take its cue from DJIA’s ascent, on prospects for the Fed’s policy easing & reports of accommodative policies from China.

Participants might bid for time to check on turnover improvement, supporting local benchmark’s sideways movement.

Another range-bound session & selective trade might persist, unless significant build-up in turnover occurs for local equities.

Selective trades may prevail, as investors check for possible improvement in the previous sessions’ frail turnover.

Sessions might mimic yesterday’s movement, ahead of the Independence Day break tomorrow.

Participants’ attention may be drawn to the Federal Open Market Committee (FOMC) meeting on 11-12 June, within a shortened 4-day trading week.

Participants would monitor continuity of the latest ascent, while heeding for those that might opt to lock-in gains.

Local gauges might move above the 6,550 mark, with 5-month inflation averaging 3.52% (vs. prior year’s 7.52%).