In the U.S., bond yields continue to drop and the U.S. dollar weakens further. We note that the U.S. 2-year treasury has fallen from its multi-year high of 4.3% to 4.0% while the dollar index spot (DXY) plunged by more than 4% from its high of 114.8 last September 1. Consecutive release of weaker economic data, specifically the lower-than-expected US Purchasing Managers Index (PMI) and higher-than-expected drop in job openings, have prompted the markets to dial down their expectations for Fed rates as slower economic activity could indicate that inflation could slow down.<\/p>\n\n\n\n
In addition to this, the surprising pivot of both UK and Australia\u2019s central banks from a Fed-like hawkish stance following the quantitative easing of the former and dovish notes of the latter could stir some hopes that the Fed may also step back from its aggressive rate hikes. These all led to the positive tone in the US market that we saw in recent days which should trickle down to Philippine stocks. However, we think this could only bring forth a short-term\/temporary recovery for the PSEi as US inflation is still the primary concern (due out Oct. 13) for the market and the Fed.<\/p>\n\n\n\n
We, therefore, would not jump hastily to an accumulation strategy but stay on range-trading with immediate support and resistance levels at 5,700 and 6,200, respectively. <\/strong><\/p>\n\n\n\n For investors\/traders who are willing to enter the market at current prices, our advice is to focus on companies that are resilient against weaker peso and benefiting from reopening and with yield plays, such as:<\/p>\n\n\n\n However, we note that for CNVRG, looming deletion from MSCI is likely to cast a heavy pall on the stock. Bottom fishing could also be attractive at the moment given that the positive sentiment abroad is likely to lift the overall market.<\/p>\n","protected":false},"excerpt":{"rendered":" Here’s a commentary on an important issue or event affecting the stock market <\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1236,11],"tags":[],"class_list":["post-317813","post","type-post","status-publish","format-standard","hentry","category-free-reports","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/317813","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=317813"}],"version-history":[{"count":2,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/317813\/revisions"}],"predecessor-version":[{"id":320544,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/317813\/revisions\/320544"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=317813"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=317813"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=317813"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n