With the local stock market stuck in the doldrums, investors are hoping that the July remittance numbers and the expected US Federal Reserve rate cut will overcome political noise and spur investor sentiment.

“Global markets enter the week with focus squarely on the Fed's September 17-18 meeting, where a 25-basis-point rate cut appears nearly locked in, buoyed by cooling inflation data and a softening labor market,” said online brokerage 2TradeAsia.com.

It noted that, “producer prices rose modestly in August, already supporting expectations of further easing; a wildcard is a potential 50-basis-point move if downside risks materialize and, while an outsized rate cut is improbable by next week, this sets up the Fed to have a series circuit of dovish calls in the next few quarters (vs one-offs initially penciled).”

The brokerage said that, with a broader macro tailwind in global inflation trending upwards of four percent per International Monetary Fund projections, synchronized easing cycle among major central banks might shove emerging market risk assets outside of current trading bands.

At the domestic front, as the government's intensified anti-corruption push further gains momentum, in the short-term, this may impair cold money flows as overseas funds adopt a wait-and-see stance, pending clearer budget transparency and project viability, potentially pressuring the peso and curbing inflows.

“Longer-term, however, rooting out corruption could foster robust capital formation by rebuilding public trust, paving the way for efficient infrastructure rollouts and momentum (especially in the context of the economic team navigating the latter half of PBBM's term),” 2TradeAsia.com said.

Meanwhile, Phisltocks Financial Research Manager Japhet Tantiangco said, “The local market remains bearishly biased, extending its losses to a fifth straight week in last week’s trading. Investors’ confidence is tepid, reflected by the market’s movement as well as the thin trading activity.”

“With the five-week decline, we may see some bargain hunting this week. For a strong rebound however, the local market is still deemed in need of a catalyst. Investors are expected to look forward to the Federal Reserve’s upcoming policy meeting,” he noted.

Tantiangco explained, “A Fed rate cut may give the local market a boost. A Fed rate cut may also strengthen the local currency which would also be favorable to the local bourse. On a negative note, lingering concerns over the corruption issues in the Philippines may continue to weigh on sentiment.”

For stock picks, Abacus Securities Corporation is advising investors to accumulate Apex Mining shares because of the strong growth in gold prices. It noted that, every $100 per ounce increase in price will at ₱440 million to the company’s bottomline.