Philippines: Market faces uncertainties from another US rate hike

• Feb 20, 2017

MANILA, Philippines –  Renewed fears of a possible interest rate increase in the US may continue to bring uncertainties to the stock market this week, analysts said.

The benchmark Philippine Stock Exchange index (PSEi) closed almost unchanged at 7,244.79 last week.

“Chart wise, the week’s close at 7,244.79 continues to suggest the market to remain range bound between the 7,000 and 7,400 levels in the near term,” BDO Unibank chief market strategist Jonathan Ravelas said.

Ravelas said the bulls are staying on the sidelines at such a level and are seen going back only above the 7,500 mark.

“Last week, the stock market benchmark index remained range bound, finishing the week almost unchanged at 7,244.79. Renewed rate hike fears in the US following Fed chair Janet Yellen’s statement in Congress caused local players to lighten up their position,” Ravelas said.

This is on the back of a recent spike in US inflation at 2.5 percent, versus the target of the Fed at two percent.

Last week, sessions moved within a tight range or from 7,174 to 7,294 before closing 10 notches up at 7,244, higher by 13 percent week-on-week, with most sectors posting gains.

Total value turnover reached P6.7 billion, up six percent, as losers edged-out gainers, 99 to 96.

Foreign fund managers have resumed their exit, with net selling recorded at P152 million.

Source: http://www.philstar.com/business/2017/02/20/1673920/market-faces-uncertainties-another-us-rate-hike