Market Outlook

The index closed at 6609.24 yesterday (+1.85%) within the range of 6484-6638, with all indicators exhibiting signs of bullishness.

Eyes are set whether the PSEi would continue its recent strength, or sellers might seize on this move to pocket gains.

Sentiment might take its cue from Wall Street’s ascent, as expectations build for consideration of less-restrictive monetary policies by the Fed for the remainder this year.

Participants will monitor local gauges’ staying power above 6,500, as some players seize on this strength to cash-out.

The PSEi rose by +1.26% w/w to close at 6,492.75pts.

The market might take its cue from Wall Street’s incline, with the latest jobs data supporting expectations for monetary easing from the Fed.

The index closed on a high note on resistance levels yesterday at 6507.49 (+0.89%), with all indicators showing bullishness and stocks rallying.

Market participants would heed to latest inflation for June (vs. May’s 3.9%), with BSP’s outlook pegged at 3.7% to 4.5%.

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.

A key vulnerability is the proximity to a death cross, with the 50-day moving average nearing the 200-day moving average, which could signal a bearish trend if crossed.

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.

The index closed at 6299.05, within a range of 6272.46-6307.51.

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