Philippines share prices are expected to build on gains next week as fears over higher interest rates, both here and abroad, slowly fade, dealers said Friday.
The US Federal Reserve raised its key federal funds rate by 25 basis points to 5.25 percent Thursday but did not signal further increases were imminent, removing a key cause of concern in the markets.
At the same time, the Philippine central bank maintained its overnight borrowing and lending rates at the same level as the past nine months, adding comfort to the Fed decision.
For the week to June 30, the composite index rose 65.62 points or 3.1 percent to 2,178.79 points but that was due to a sharp 4.52 percent gain on Friday alone.
Average daily turnover was 800.2 million shares worth 1.445 billion pesos (27.14 million dollars) from 1.158 billion shares worth 910 million pesos in the previous week. "We expect the market to continue its upward trend next week," said Gomer Tan of Regina Capital Development Corp.
"It's the signal that the US Fed won't be raising its key interest rates in the coming months unless there is a substantial increase in inflation," Tan added Stocks slumped earlier this month as investors waited out the decision of both the US and the Philippine monetary officials but they rebounded on Friday.