The market ended the week on the green side as it rose 0.52 percent but analysts expect the benchmark index to keep moving sideways until the government announces a further opening of the economy amid the falling infection rates.
Shares also extended their gains after the US Federal Reserve offered no surprises. Fed officials penciled in at least one interest rate hike next year.
First Metro Securities Brokerage Corp. research analyst Royce Aguilar said Bangko Sentral ng Pilipinas’ decision to put off moves to raise interest rates has long been discounted. “We’re not really expecting any moves now despite the elevated inflation, because they say its transitory,” he noted.
US Federal Reserve’s dotplot seems to have moved earlier seen at 2022 instead of 2023 as expected in June.
The Evergrande debt crisis are also keeping investors on the sidelines. Aguilar said the market is resilient, but 7000 is a key resistance.
“We will need more catalysts like further reopening to break past it; You know we’re relatively cheap, levels are justifiable at this point, we’re seeing more upside in 12 to 24 months,” Aguilar averred
The Philippine Stock Exchange index settled at 6,951.53 on 94,310 shares traded valued at P8.325 billion.
As the third quarter comes to a close, the next earnings season will grab the investors’ attention next, Regina Capital Development Corp. managing director Luis Limlingan said.
Unease over China dev’t
Asian markets fluctuated as investors kept a wary eye on developments in the Evergrande debt crisis, while keeping an upbeat outlook for the global recovery outlook.
Investors struggled to track a surge on Wall Street that followed news the Federal Reserve planned to start tapering its vast monetary easing program within months, which observers took as a signal of confidence that the world’s top economy is well on the right track.