By Gloria H. Grejalde
Economic managers are painting a rosy picture of the Philippines in 2013 with an investment status upgrade, a 7 percent GDP growth, low interest rates and stock exchange index at 11,000-point level.
“A Latin American country misplaced geographically in Asia, the Philippines stock market is also the best performing equity market in Asia,†according to Prasenjit Kumar Basu, Regional Head, Research and Economics of Maybank Kim Eng.
He also said the country deserves an investment grade status, this despite the trade balance deficit that was offset by the soaring foreign reserves and where foreign reserves are greater than its liabilities.
“It is just a matter of time before rating agencies wake up to this reality and when that happens, investment environment will dramatically change,†he said.
Basu who talked on the subject of “2013: Strengthening Global Recovery Amid Ample Liquidity†during the Maybank Economic Briefing at the Taps, Genting Club at Maxims Hotel in Resorts World Manila on Thursday also said that the “Philippines is set to become the new pole of emerging market.â€
For his part, Maybank ATR Kim Eng Investment Director Philip Frederick S. Hagedorn who discussed "2013 Philippines Equities Outlook" said the country has the strongest market in the world.
“For just two months, the country recorded a total of US$ 812 million foreign inflows, equivalent to 30 percent of all of 2012, there is no way to stop the market from growing up with this type of flows,†Hagedorn explained.
He projected the market to end at 11,000 this year and advised investors not to sell their equity during this period as it will continue to sky rocket upwards.
“Forget the fundamentals, just buy, what is important is that earnings are growing and that the market is shooting,†he stressed.
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