THE stock market’s direction this week will be primarily influenced by upcoming Bangko Sentral ng Pilipinas (BSP) and US Federal Reserve policy decisions, analysts said.

Positive readings from accompanying statements could lift the benchmark Philippine Stock Exchange index (PSEi), which fell by 1.55 percent week-on-week to a near 11-month low of 6,126.34 last Friday.

Philstocks Financial Inc. senior research analyst Japhet Tantiangco said “... dovish signals are seen to help improve market sentiment, while hawkish signals may pull it down.”

Continued uncertainties, however, could limit any rebound for the PSEi despite it being “at bargain levels with a PE (priceearnings) ratio of 13.56x, below its 2018-2022 average of 19.08x.”

Online brokerage 2TradeAsia. com said investors should expect “lingering selling pressure from the Ghost Month festival plus seasonal weak consumer activity in the August-to-September period…”

“[A] more positive outlook from central banks should help the market transition to base building towards a historically more successful November-DecemberJanuary season,” it added.

“Range trade. Immediate support is at 6,100, while resistance is at 6,300.”