Philippines share prices are likely to follow Wall Street's lead in the coming week with investors awaiting the US Federal Reserve's action on interest rates, dealers said Friday.
"The movement of the Philippine market is strongly dependent on Wall Street. If they go up, we go up, if they go down, we go down. It will continue to mirror what the dow is doing," said Nestor Aguila of DA Market Securities. He forecast that the market would move within the 2,900 and the 3,000-point range for the week.
Aguila said that most of 2008 "is really just for accumulating in sectors that may outperform expectations in 2009 and 2010." However he says the market may bottom out between July and August.
"The market will continue consolidating and will be trading at a narrow range pending major catalysts like the Fed's action on interest rates," said Jose Vistan of AB Capital Securities. "I believe the Fed will continue to cut interest rates since it wants not just to stimulate the economy but also to shorten the span of recession."
The US Federal Reserve is to meet on April 29-30 to decide on interest rate policy. For the week to April 18, the composite index fell by 25.31 points or by 0.9 percent to 2,915.67 points.
Average daily turnover fell to 590 million shares worth 2.04 billion pesos (48.7 million dollars) this week from 765 million shares worth 2.55 million pesos in the previous week.
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