F. Yap Securities / 2TradeAsia

Sideways movement may continue for local equities, given the extended weekend break.

Another range-bound session is seen, as some traditional traders lighten on positions with the start of Ghost month (23 August to 21 September).

Expect sideways session for now, as equities investors sift through latest corporate earnings data & heed for other catalysts to warrant positioning.

Investors will check on feelers for continued MOC-boost, with several stocks moving at their oversold state.

Market watchers may monitor possible continuity of yesterday’s supply pressure, while digesting on 1H corporate earnings results.

The 90-day tariff truce extension between China-US and oil prices that have simmered following peace talks being arranged by the US on Russia-Ukraine, augur well in fund managers’ inflation expectation over the near-term.

Sentiment might take its cue from US equities’ overnight advance, following tamer July CPI data.

Possible follow-through weakness will be monitored, as some fund managers seize on dips to position in select shares.

Eyes are set on the revised PSEi member-basket, with possible rotation into stellar sectors (i.e., gaming, industrials, mining/oil).

Market watchers would check on overall reception to better-than-expected 2Q GDP of +5.5% (vs 1Q’s +5.4%), as several heed for BSP’s sequel direction on its policy easing cycle.

Anticipation on the release of 1H GDP may prod positioning in equities, partly with support coming from the agri sector.

Market participants might laud July’s tamer inflation, that is seen to widelysupport policy easing on domestic interest rates.

Momentum may continue, as participants position in bargain shares with solid prospects for 2H.

Resumed positioning is seen, on expectations for tamer July local consumer prices, plus support for interest rate easing in 2H.

Eyes are set whether positioning would soon unfold, with the PSEi at attractive zone.