29 April 2011
USD/PhP: 42.80 - 0.125 PSEi: 4319.51 + 40.68
USD/JPY: 81.56 PFINC: 955.89 + 6.40
EUR/USD: 1.4834 BDO: 54.30 + 0.25
GBP/USD: 1.6664 BPI: 58.80 + 0.95
PDSTF3M: 0.7842 MBT: 68.65 + 0.10
Prices as of 4:00pm Source: Bloomberg, Reuters
Philippine Interest Rate Outlook
Secondary market rates continued to head south boosted by the demand for short-term dated goverment securites. The ample market liquidity, perception that inflation is well under control and news that the 1Q budget short-fall of the goverment is well below its target continue to support the view that rates will remain on the low side. Expect interest rates to remain near the lows.
Philippine Equities Outlook
Local shares rose 1.05 percent week-on-week to 4319.51 as investor sentiment was boosted by the rise in Wall Street on positve 1Q corporate results.
Chartwise, the week's close at 4319.5 continues to support a near-term rise towards the 4,400 levels. Failure to clear the said level could call for a retest of the 4,200 levels.
Philippine Peso Outlook
The local currency rose 1.10 percent week-on-week to 42.80, as the greenback weakened further this week following S&P outlook downgrade on the USA to negative. Global investors continue shy away from the US Dollar denominated assets.
Chartwise, with the breach of 43.00 key support, expect further appreciation towards 42.50 levels.
BDO UNIBANK, INC.
Jonathan Ravelas
Chief Market Strategist
(632) 858-3145
Rhys Cruz
Junior Researcher
(632) 858-3001
