Last week, the PSEi rose by 1.25% week-on-week to close at 7,022.85 (up 86.76 points). Despite some late profit-taking activities, the local bourse managed to end a volatile week in the green, finally closing above the elusive 7,000 level on the back of reinvigorated global risk-on sentiment and continued appreciation of the Peso. From the foreign front, consensus expectations of a 25bps rate cut by the Fed rose to 100% chance after US inflation came in within forecasts at 2.5%. Meanwhile, the European Central Bank\u2019s (ECB) rate cut to bring key rates to 3.5% also fueled bullish sentiment.<\/p>\n\n\n\n
This week, we expect the index to trade sideways with a slight upward bias amid the lack of catalysts to reverse the market\u2019s bullish mood. With consensus forecasting a 100% chance of a 25bps (0.25%) rate cut by the Fed, investors will look more toward the Fed\u2019s outlook on the long-term direction of interest rates and the US economy during the FOMC meeting on Thursday. <\/p>\n\n\n\n
On the local front, another round of pump price rollbacks may further fuel gains with gasoline, diesel, and kerosene prices expected to decline by PHP0.90 to PHP1.20\/litre, PHP1.30 to PHP1.60\/litre, PHP1.50 to P1.65\/litre, respectively. However, persistent profit-taking activities as seen in the prior weeks may cap upside action.<\/p>\n\n\n\n
Recommendation<\/strong><\/td>| Trailing Stop<\/td><\/tr> | 1-Year Target Price<\/strong><\/td> | PHP 91.30<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n | <\/div>\n\n\n\n Security Bank Corp. (SECB) has rallied by more than 30% following its exit from the MSCI Philippines Small Cap Index last 30 Aug 2024. It has entered extreme parabolic status, increasing the probability of a retracement. With the recent surge, breaking above a 4-year downtrend resistance and trading above key moving averages (50-day, 100-day, and 200-day), it has now entered extremely overbought conditions (RSI: ~80). Such parameters are prone to profit-taking activities and a retracement.<\/p>\n\n\n\n For traders who positioned at the close last 30 Aug 2024, implementing trailing stops is advisable. Investors who want to accumulate may enter around the PHP70.00-72.00 area once it proves to be a strong support.<\/p>\n\n\n\n <\/div>\n\n\n\n 2. Citicore Renewable Energy Corp. (CREC)<\/h3>\n\n\n\n
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