PSEI - Things to consider next week (Oct 24-28)

PSEI closed lower to end at 7,650.22 as investors cash out gain from the previous rally. Noting however that foreign trades still ended up at net buying of 236.02M, although the index ended up on a selling pressure.



PSEI may still trend sideways this week on a short upward bias, based on a technical perspective as EMA13(fast) is still on an upward trend and MACD just made its golden cross



Here are the things you need to know that could affect our PSEI next week:

1. Philippine Companies 3rd Quarter Reports

Deadline is still far ahead but many companies are already submitting their 3rd quarter FS, so we need to watch out for that. Most investors are already positioning their trades as they bet to a strong 3rd quarter earnings report.

2. Global Stocks/US Stocks

Most index follows the trend of US stocks major indices as the 3rd quarter earnings show strong reports on blue chip companies, many investors are at ease to know that the worlds largest economy is posting better than expected earnings. Add to that is the European Central Bank decision of not changing its policy until December.

3. USD & US Economic datas

Many investors are waiting for the 3rd Quarter weekly jobless claims this Friday along with other US economic data. Although based on reuters poll chances of FED rate hike is still at 60% chance as most policy makers would not hike in November because of the upcoming presidential election.

4. Oil

Oil slips down by 1% as traders cashed out gains from previous rallies.

5. Duterte

A lot happened this week with PRRD's visit to China, the latest is the cutting of ties with the US as the PRRD aligns with China, and the awaited meeting of Japan's PM Abe with PRRD on Thursday as they talk about US alliances.

© sa owner ng pic

There are still a lot of factors that could affect the index but I can't possibly cover them all. These are just my takes, and I could be wrong. GLHF.