MANILA – Philippine share prices could be lifted this week as fund managers buy up stocks with strong earnings prospects amid the favorable local economic performance, dealers said.

"Window-dressing activities in the coming days should provide some support," said Rommel Macapagal of Westlink Global Equities.

This refers to a traditional practice of fund managers to adjust their portfolios as the new year approaches by buying strong stocks.

Macapagal said that unless there is a clear reversal of sentiment, the market should be able to claw back lost ground.

"The local economy is fundamentally sound and even if the central bank decides not to cut interest rates (this) week, we won't be disappointed," he said.

The Philippine central bank will meet on December 20 to decide what to do with local benchmark interest rates, more than a week after the US Federal Reserve again cut rates by 25 basis points to prevent the US economy from slipping into recession.

Some analysts believe a cut in domestic interest rates is imminent but others say the central bank will postpone rate cuts for next year.

For the week to December 14, the composite index fell 206.7 points or by 5.5 percent to 3,538.9 points.

Average daily turnover slipped to 2.02 billion shares worth P4.18 billion ($101.4 million) from 2.56 billion shares worth P4.92 billion in the previous week.

AB Capital Securities warned that "the market usually drifts sideways during this time of the year as traders are already in holiday mode."*AFP

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