Shares nearing breakout zone as PH readies another rate hike
Investors would be looking toward the final batch of third quarter earnings and the Nov. 17 rate-setting meeting of the Bangko Sentral ng Pilipinas (BSP) as the benchmark Philippine Stock Exchange Index (PSEi) moves closer to a key resistance level.
The PSEi gained 1.64 percent last week to end at 6,286.77. Local stocks staged a rebound particularly on Friday after the US reported better inflation numbers.
Michael Ricafort, chief economist at the Rizal Commercial Banking Corp., said the next major resistance zone was from 6,300 to 6,400.
For analysts following technical indicators, a convincing breakout past a resistance area could see further continuation on the upside.
Support, meanwhile, was pegged from 6,271 to 6,249 for the PSEi, Ricarfort said.
BSP Governor Felipe Medalla said on Friday he would vote to raise the benchmark rate by 75 basis points, matching the recent hike by the US Federal Reserve. The key rate currently stands at 4.25 percent.
