Philippine Markets: 10 December 2010

10 December 2010

USD/PhP: 43.75 (as of 12:00pm) PSEi: 4135.75 - 73.67
USD/JPY: 83.73 PFINC: 957.52 - 17.09
EUR/USD: 1.3246 BDO: 58.90 - 1.50
GBP/USD: 1.5780 BPI: 59.00 - 1.00
PDSTF3M: 1.3308 MBT: 70.50 - 1.65
Prices as of 12:00pm Source: Bloomberg, Reuters



Philippine Interest Rate Outlook

Secondary market rates continued to dive week-on-week as market liquidity remained supportive of short-term government debt. Continue to expect interest rates to move sideways to down next week.

Philippine Equities Outlook

Local equities lost 0.98 percent week-on-week to 4135.75 as profit-taking activities dominated the market during the end of week. Investors remained cautious as European debt woes continued to create uncertainty in the market.

Chartwise, the market's failure to clear the 4,250 levels triggered selling pressure with potential target of 4,000 - 4,050 levels. Failure for these support levels to hold may suggest further downside towards 3,900.

Philippine Peso Outlook

As of 12:00pm, the peso just slightly rose against the US dollar week-on-week as exchange rate continued to trade within the 43.50 - 44.00 levels. Inflows continue to support the peso despite uncertainties on the external front evidenced by major currencies tumbling against the US dollar. Chartwise, exchange rate is still expected to trade within 43.50 - 44.00 range until the end of the year.