Philippine stocks are expected to trade within a tight range in the last trading week of September on lingering worries over interest rates.
China Bank Capital managing director Juan Paolo Colet said investors should prepare for a tough trading week as the market would test the durability of the technical rally in the past two trading days.
“A cloudy economic picture and prolonged hawkish monetary policy will keep risk appetite for Philippine stocks in check,” Colet said.
“Both the Federal Reserve and the Bangko Sentral ng Pilipinas have left the door open for a rate hike in November, and more importantly they have signaled a potentially long period of high rates next year,” he said.
Philstocks Financial Inc research head Japhet Tantiangco said the index’s recent decline made the market attractive to bargain hunters. The index is trading below the 2018 to 2022 average price-to-earnings ratio of 19.08x.