Philippines Markets: 08 October 2010 (as of 2:00 pm)

08 October 2010

USD/PhP: 43.31 (as of 12:00pm) PSEi: 4236.98 - 8.07
USD/JPY: 82.36 PFINC: 954.72 - 2.78
EUR/USD: 1.3937 BDO: 59.95 - 0.55
GBP/USD: 1.5871 BPI: 55.10 - 0.25
PDSTF3M: 4.0308 MBT: 75.00 unch
Prices as of 2:00pm Source: Bloomberg, Reuters


Philippine Interest rate Outlook

Secondary money market rates were lower by 15 basis points week-on-week following a better than expected September inflation of 3.5 percent. Monetary authorities kept its benchmark rates unchanged at its last meeting amid a benign inflation environment.

Philippine Peso Outlook

As of 12:00 pm, the local currency rose 1.30 percent week on week to 43.31 as the US dollar extended its losses against the major currencies, particularly the Euro. Local players scaled back purchases on further expectations that the currency will move to 43.00 levels.

Chartwise, the recent break below the of the 43.70 levels now puts the 43.00 levels to a challenge. Any pullback if any is limited to the 43.50 levels.

Philippine Equities 0utlook

Local stocks rose anew by 3.04 percent week-on-week to 4236.98 as foreign portfolio flows trickled to the local bourse supported by low interest rate environment.

Chartwise, the market appears to have the momentum to challenge the 4500 levels.
Jonathan Ravelas
Chief Market Strategist
(632) 858-3145

Rhys Cruz
Junior Researcher
(632) 858-3001