Philippine stocks are expected to climb slowly in the last trading weeks of the year, leading to a possible “Santa Claus rally”.
Philstocks Financial Inc. research head Japhet Tantiangco said the Philippine Stock Exchange index (PSEi) may re-test the 6,800 level over the short term.
The market could move with an upward bias amid hopes that the BSP would further ease monetary policy.
“This comes as inflation is seen to remain under control based on the latest figures. In addition, the local currency’s appreciation against the US dollar, if it continues, may give the market a boost,” Tantiangco said.
Investors are also expected to monitor the upcoming US November inflation numbers as this would give clues on the Federal Reserve’s policy outlook.
The PSEi rose 1.74 percent to close at 6,729.14, while the broader all-shares index advanced by 1.38 percent to 3,790.68.
Analysts said investors also cheered the continued strengthening of the peso against the dollar.
While November inflation rate came in higher than the previous month’s level, it remained within the government’s full year target of 2 percent to 4 percent.
Average daily value traded slightly improved to P6 billion from the previous week’s average of P5.9 billion.
Foreign selling slowed down to P1.89 billion from the previous week’s P4.42 billion.
