Shares seen higher on Wall St. rebound, oil price retreat
Thomson Financial
First Posted 08:29:00 07/09/2008
MANILA, Philippines –Shares are expected to open higher on Wednesday with investors encouraged by Wall Street's rebound and a pullback in oil prices.
Crude prices tumbled $5.33 to settle at $136.04 a barrel on the New York Mercantile Exchange, bringing oil's two-day drop to more than $9.00.
US stocks rose on indications of more access to emergency funds for the financial sector in speeches by Federal Reserve chairman Ben Bernanke, Treasury Secretary Henry Paulson and JPMorgan Chase & Co. chief executive Jamie Dimon, easing concerns about the ailing credit market.
But the market's gains may be limited after the Philippine government approved Tuesday an average 7.0- percent hike in transportation fares to help the sector cope with high oil prices.
"Price pressures are going to weigh on the market, higher transport fares will trigger the clamor for increases in other sectors," said Astro del Castillo, managing director at First Grade Holdings.
Volatile oil prices raise worries that inflationary pressures will intensify, especially in a country heavily dependent on imported oil, dampening consumer demand and corporate profits.
The composite index stretched gains for the third straight session to close up 35.89 points or 1.5 percent at 2,450.55 on Tuesday.
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