22 October 2010
USD/PhP: 43.34 (as of 3:30pm) PSEi: 4286.87 + 37.82
USD/JPY: 81.13 PFINC: 960.41 + 8.85
EUR/USD: 1.3900 BDO: 60.00 unch
GBP/USD: 1.5698 BPI: 56.60 - 0.25
PDSTF3M: 3.7635 MBT: 74.00 + 2.45
Prices as of 4:00pm Source: Bloomberg, Reuters
Philippine Interest Rate Outlook
Secondary money market rates moved sideways to down this week despite national government's report of another month of deficit amounting to 31.7 billion pesos. This brings the year to date deficit to 259.8 billion pesos during the first nine months of 2010. Continue to expect rates to move sideways.
Philippines Equities Outlook
Local shares continued to trek upward, rising 1.67 percent week on week to 4,286.87 despite a flash drop earlier on the trading week. Optimism on 3Q earnings continue to stir local and foreign investors to buy local shares.
Chartwise, the week's close at 4286.87 continues to support further rallies towards the 4,250-4,500 levels. Immediate support and resistance is seen at 4,150 and 4,250 levels, respectively.
Philippine Peso Outlook
As of 3:30 pm, the local currency depreciated this week against the dollar as the dollar strengthened against major currencies particularly the Euro. The currency hit a low of 43.64 during the early part of the week but recovered as inflows buoyed the Philippine Peso.
Chartwise, expect the currency to range between 43.15-43.50 levels.
Jonathan Ravelas
Chief Market Strategist
(632) 858-3145
Rhys Cruz
Junior Researcher
(632) 858-3001
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