THE stock market’s direction this week is expected to be influenced by the results of a US Federal Reserve meeting on Wednesday, US time, when policymakers are widely expected to announce a fourth interest rate hike for the year.
“Investors will take cues from the move of the Fed…,” Timson Securities, Inc. trader Jervin de Celis said, adding that the “FOMC’s (Federal Open Market Committee) outlook for the US economy will also be announced so if estimates remain favorable for the US, we might see a continutation of foreign selling in our market.”
The Fed will begin a two-day meeting on December 18 and de Celis said he was expecting another rate hike of 25 basis points.
In a separate comment, online brokerage firm 2tradeasia.com said results of the meeting would help support views about the direction of rate hikes elsewhere.
It said that locally, volatility would color the remaining trading days of 2018 as fund managers reposition portfolios.
“The Philippine Stock Exchange index (PSEi) would likely stabilize within 7,500 to 7,700 with an angle to hopefully end the year within 7,800 to 8,000,” it said.
On Friday, the PSEi inched up by 0.02 percent or 1.45 points to close at 7,524.37. The wider All Shares dipped by 0.02 percent or 0.83 points to finish at 4,506.50.