PHILIPPINE shares regained their momentum in early trading Thursday, hitting their resistance level of 8,400 after US Fed officials signaled that an interest rate hike is likely in December.
The benchmark index rose 0.51 percent or 42.22 points to 8,400.69. The wider All Shares inched up 0.39 percent or 18.91 points to 4,926.79.
“Philippine markets resumed the upward trajectory as the minutes from the FOMC [Federal Open Market Committee] meeting confirmed what was on many analysts’ mind,” Regina Capital Development Corp. said in an interview.
“Accordingly, we continue to place the subjective odds of a December hike at 80 percent,” it added.
Minutes from the FOMC meeting showed that a December rate hike was a near lock as many participants thought another increase was likely to be justified if the medium-term outlook remained unchanged.
Sectoral indices were mixed, with holding firms leading the gains, advancing by 0.98 percent. Mining and oil, on the other hand, was the biggest decliner, down by 0.72 percent.