PHILIPPINE financial markets reopen today after a reassigned holiday, and sentiment could be influenced by the likelihood that interest rates could again be raised, analysts said.

The country marked Bonifacio Day, supposed to be celebrated this coming Thursday, on Monday in line with the principle of holiday economics — creating a “long weekend” that began on Saturday to spur travel and tourism.

The benchmark Philippine Stock Exchange index (PSEi), which has gained for the past four weeks, ended 0.93 percent higher week-on-week at 6,269.50 last Friday.

Despite the recent momentum, however, Philstocks Financial Inc. senior research analyst Japhet Tantiangco said sentiment would be affected by “expectations that interest rates will remain high for a while.”

Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. has said that monetary authorities could resume tightening measures if inflation “doesn’t go down as projected.”

Inflation data for November will be released on December 5, and the Monetary Board will hold its final policy meeting for the year on December 14.

The four-week market rally could also push some investors to pocket some gains this week, Tantiangco continued.

“However, trading has been lethargic, implying that the market’s current rally is not backed by strong investor participation.”

Traders will also likely look for catalysts that can spur optimism

about the economy, Tantiangco continued, noting that without such, “we may see selling pressures dominate, leading to a pullback for the local bourse.”

Online brokerage 2TradeAsia. com, meanwhile, said improved macro-related headlines and economic data releases had caused some reversals in market sentiment.

Investors will be watching out for drivers that will set the tone for 2024 and “whether or not broader market forces will follow the beat of the same drum as in late 2022 up to 2023,” it added.

A retest of the 6,500 mark by the end of December could be possible should upcoming data releases at least track market expectations, the online stock broker said.

Chartwise, immediate support this week is seen at 6,100, while immediate resistance is expected to be at the 6,400 level.