Philippine Markets: 19 November 2010

19 November 2010

USD/PhP: 43.83 + 0.16 PSEi: 4203.60 + 82.98
USD/JPY: 83.37 PFINC: 959.33 + 2.63
EUR/USD: 1.3677 BDO: 56.80 + 0.30
GBP/USD: 1.6073 BPI: 58.40 + 0.70
PDSTF3M: 2.1808 MBT: 71.55 - 1.95
Prices as of 4:00pm Source: Bloomberg, Reuters


Philippine Interest Rate Outlook

Secondary money market rates fell anew by an average of 14 basis points week on week with short term yields falling by around 100 basis points after rates fell at the goverment's latest auction of government securities. Market liquidity remains the key driver of drop in rates supported by the upgrade of the country's credit rating the other week.

Continue to see rates to move sideways to down till end of the year.

Philippine Equities Outlook

Local shares rose 3.11 percent week-on-week to 4203.60 due to bargain hunting activities as the country's credit upgrade renewed investors appetite for Philippine stocks. Strong 3Q corporate results and improving market sentiment overseas continue to support the emerging rally.

Chartwise, the week's close at 4203.60 implies a test of the 4,250 levels in the near-term. Strong support lies at the 4,050 levels.

Philippine Peso Outlook

The local currency declined 0.16 percent week-on-week to 43.83 as dollar strengthened against major currencies. Chartwise, continue to expect the currency to range between the 43.50 - 44.00 levels in the week ahead.