Shares prices are expected to sustain their upward momentum this week on hopes that interest rate hikes would soon ease.
Analysts said the lower-than-expected US inflation was bolstering hopes for slower US Fed rate hikes.
“Following the lower-than-expected US inflation report, markets expect a higher probability of a 50-basis-point rate hike in US Federal Reserve’s meeting… in December,” UTrade Inc. research analyst Neil Andrew Maderaje said.
Maderaje said the market already priced in the previous announcement of Bangko Sentral ng Pilipinas Governor Felipe Medalla of a 75-bps rate hike in the upcoming Monetary Board meeting this week.
The strong third-quarter earnings of listed firms are also boosting investor confidence in the market.
“Earnings have been in line or surprisingly outperformed our expectations given the headwinds brought about by inflation,” Regina Capital Development Corp. head of sales Luis Limlingan said.
The bellwether Philippine Stock Exchange index rose 1.64 percent last week to close at 6,286.77, while the broader all-share index went up by 1.7 percent to 3,328.89.
