Philippine Markets: 03 December 2010

03 December 2010

USD/PhP: 43.95 (as of 12:00pm) PSEi: 4176.48 + 27.58
USD/JPY: 83.67 PFINC: 966.23 + 16.84
EUR/USD: 1.3204 BDO: 59.35 - 0.25
GBP/USD: 1.5593 BPI: 58.05 + 1.05
PDSTF3M: 1.6667 MBT: 73.50 + 2.55
Prices as of 4:00pm Source: Bloomberg, Reuters



Philippine Interest Rate Outlook

Secondary money market rates continued to plummet as market remained very liquid evidenced by historic low yields during recent treasury bill auction. Expect rates to move sideways next week.

Philippine Equities Outlook

Local shares rose 3.03 percent week-on-week to 4176.48 as investors took advantage of the low prices to bargain hunt. Investors took cue from improving sentiments overseas.

Chartwise, the week's close at 4176.48 implies a test of the 4,200 - 4,250 levels in the near term.

Philippine Peso Outlook

The local currency rose against the dollar week-on-week as remittances from Filipinos working overseas continued to flow . Another factor that contributed to the currency's gain is the flow of hot money
into the local capital markets.

Chartwise, current movement of exchange rate suggests that the market may range between the 43.50-44.00 leves in the near-term.