The business community warmly received the blueprint for the country’s economic future under President Duterte’s leadership.
Without an imminent threat to skew the country’s economic trajectory, corporate profits are expected to continue climbing, which is good news for investors.
Prospects are bright for the two major asset classes available in Philippine financial markets—fixed income securities or debt; and stocks or equities.
“The sentiment is very positive,” First Metro Investments Corp. advisory and trust group head Bede Lovell Gomez said. “We had a well-accepted election results and the new administration’s policies seem to favor the business community.”
Economic growth is seen boosting corporate earnings. In the first quarter of 2016, domestic output rose by 6.9 percent from the previous 6.5 percent.
BUSINESS
BUSINESS
BUSINESS
Local share prices reflect the optimism. In June, the benchmark Philippine Stock Exchange Index (PSEi) rose more than 5 percent, outperforming all other major emerging market Asian bourses.
The think tank Capital Economics expects the PSEi to end the year at 7,500 (from end-June’s 7,776) before rising to 8,000 by the end of 2017.
