Market Outlook

Investors would be monitoring for possible repeat of prior session’s MOC-selling, especially on intra-day rallies.

Local equities may take its cue from Wall Street’s incline, riding on solid earnings from financials & latest CPI gauge in relation to the Fed’s possible course on interest rates.

The PSEi struggled to stay afloat this week, with another bearish session keeping the index in the red for most of the trading day and ultimately closing just below the 6,300 level.

Participants may adopt a wait-and-see mode for now, given supply pressure that typically comes out on intra-day ascents.

Gauges might be poised for recovery, as buyers aiming to position on lows find the 6,300 zone attractive.

The PSEi pulled back by 1.63% dragged by heavy foreign outflows as it retested key resistance zone around the 6,600 to close at 6,496.32 (-107.49).

Sentiment might sway to Wall Street’s sharp retreat Friday, as strong jobs data is supporting views for status quo from the Fed on its widely-watched interest rate policy.

The PSEI posted a modest intraday gain of +0.23%, closing just above the 6,500 mark.

Another range-bound session might be seen, with US markets on National Mourning for former Pres. Jimmy Carter.

Buyers may keep a close watch on local gauges’ movement, to check if supply pressure remains present prior to taking positions in select large caps.

The PSEI continues to trade below all its moving averages, closing down by -1.20% intraday.

Further monitoring on continuity of prior session’s supply pressure is expected, as gauges settle at a comfortable zone.

Eyes are set whether local gauges would continue with its positive momentum, as buyers aim for good entry points in select oversold shares.

Continued advance is likely to be supported, as sentiment might glide to US equities’ Friday rise.

The PSEi continued its recovery to the 6,600 level to start the year on a positive note, rising by 1.15% and closing at 6,603.81 (+75.02).