Philippines share prices next week would follow the lead set by the United States, especially the actions and statements of US Federal Reserve Chairman Ben Bernanke, dealers said Friday.
While the local economy is looking up, this may still not be enough to overcome the continuing uncertainty over the credit situation in the United States, they warned.
For the week to August 31, the composite index rose 158.52 points or 4.94 percent to 3,365.46 points. "It's still going to be following whatever the US markets will be doing," said Jasper Jimenez of BDO Securities Corp, adding that "the key is what Bernanke will say this evening."
Bernanke is due to speak later Friday at the US central bank's annual conference in Wyoming. Investors are hoping that Bernanke will give a hint that the Fed is willing to cut its federal funds rate at its September 18 meeting or sooner to stem the crisis in credit markets.
"It's hard to say what the United States will do. It is critical to see how the US investors will react to what Bernanke will say," said Jimenez. "If (the reaction) is going to be very negative, I don't think we will sustain the upward momentum," he said.
Jimenez said he was optimistic the good news on the local front, such as the surprisingly strong economic growth figures of 7.5 percent gross domestic product growth in the three months to June, could help lift the Philippine market.
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