Stock Market & Pesos
By Randell Tiongson on November 3rd, 2010The Philippine Stock Market Index nearing is 4,400 while our the Philippine Peso exchange rate against the US Dollar is about to breach the P41 mark. In the next few days, this scenario might be realized if we follow the trend.
The bullish market is buoyed by good prospects for Philippine corporations and a bullish environment preceded such a sentiment. The market is reflected by sentiments, in reality.
The weakening US Dollar has also resulted to a strengthening Philippine Peso and a 40 to 41 rate by year end may actually be realized. The appreciation of the Peso will definitely have an impact on the huge OFW remittances as well as the exporters segment – both critical components of our economy.
On the other hand, it seems that the Oil prices are rising which will have inflationary impact (rising of prices). The good news is, a stronger Peso will somewhat cushion the rise in oil prices and in a way, help ease inflationary pressures.
My 2 cents.
remittance season already nearing.. 40at the end of the year is easy.. unless Government intercedes.
The stock market today is so crazy.The stock market will open higher tomorrow.