RP to continue tracking US market next week: dealer

ABS-CBN News

Posted at Jun 20 2008 05:10 PM | Updated as of Jun 21 2008 01:10 AM

Agence France-Presse

Philippine share prices will continue following the lead of the US stock market next week amid continued concern about oil prices and the state of the US economy, a dealer told AFP on Friday.

"We're just going to trend and track the US," said Spencer Yap of BPI Securities Corp.

"We're very dependent on the US market," especially considering that there are no positive developments on the local scene that might lift the Philippine exchange, he said.

But the prospects for the US market also look dim since oil prices are still relatively high.

Also, "they have something new with all the flooding in the Midwest. Now they are worried about food prices and inflation," Yap said.

For the week to June 20, the composite index rose by 0.9 percent or by 23.84 points to 2,578.57 points.

Average daily turnover fell to 2.378 billion pesos (53.6 million dollars) from 3.323 billion pesos the previous week.

Yap forecast that the index would trade on a narrow band of 2,500 to 2,600 points in the coming week.