Market Outlook

The index corrected after its recent rally, pulling back 0.42%, but still trading above key moving averages.

Profit-taking may continue, ahead of next week’s Chinese Lunar year break, while some fund managers seize this trend to reposition portfolios.

Expect volatile trades, as some investors seize on the recent ascent to cash-out to reposition portfolios and next week’s Chinese Lunar year break.

The index closed at 6474.60 as it ended higher today (+1.98%), as it continues to consolidate above key moving averages.

Eyes are set whether local gauges would move above the 6,500 barrier, given yesterday’s advance.

Participants might monitor possible continuity of yesterday’s MOC supply pressure, as focus sets on MSCI’s portfolio review (effective 02 March).

The PSEi increased 0.98% w/w to 6,390.91 (61.94 pts.) trending above the 20-day moving average.

Local equities would take its cue from Wall Street’s Friday surge (DJIA +2.47%, Nasdaq Comp. +2.18%) as well as improved manufacturing indicator for December & higher GIR for January.

The index ended slightly higher (+0.14%) at 6,382 as it continues to trade near key moving averages.

Sentiment might take its cue from US equities’ overnight weakness, although downsides are seen to be muted, given the lack of other tech sector plays at home.

Similar prior session trend is seen, as markets weigh S&P Global’s credit rating upgrade consideration for the Philippines, vis-a-vis the release of 4Q corporate earnings.

The index rebounded strongly, closing +1.67% higher after hovering around the 6,200–6,300 levels, and it continues to trade above key moving averages.

Market participants will monitor continuity of the PSEi’s positive angle, although some might seize on this strength to cash-out.

Sentiment might anchor on the latest improvement in PMI gauge for January, hinting return to economic activity.

The PSEi declined 0.07% w/w to 6,328.97 (-4.29 pts.) after moving below the 20-day moving average, keeping the index within a short-term bearish channel.