India's leading financial firm, which is set to open a representative office in the Philippines, sees Manila sustaining good economic fundamentals in the near-term, resulting in increasing investor interest in the country.
“It [the Philippines] has the best macro story right now,” John Sturmey, a visiting managing director at Religare Capital Markets, told the local press Tuesday.
Sturmey said there were concerns about sustaining the country's economic outlook and low liquidity a few years back, but these have since waned.
“Now, the macro story looks sustainable, with the Philippines having been noted to be at a higher growth trajectory,” he noted, adding that the country's financial system is now flush with cash.
Last week, the government reported that gross domestic product (GDP) grew 6.6 percent in 2012, beating market expectations.
The country's stronger-than expected economic expansion came with a benign inflation figure of 3.2 percent for the whole of last year.
Sutha Kandiah, Religare's head of investment banking, noted that strong macrofundamentals and improving fiscal position have underpinned investors' expectations that the Philippines will finally notch the much-coveted investment grade rating.
Religare, likewise, noted the country's bullish domestic equities market, which the Indian firm plans to focus on in the near term.
“There's a good chance that the market will rise 20 to 30 percent this year,” said Sturmey.
On Tuesday, the Philippine Stock Exchange's main index reached a 15th record high for this year. The local bourse, which notched 38 records last year, increased by nearly 11 percent year-to-date.
Despite noting efforts of increasing public float and expanded trading hours, Sturmey said, “What is lacking in the [stock] market is retail participation.”
But Kandiah said this is a growth opportunity for the domestic equities market.
While the country is in a sweet spot, Kandiah also noted that investors are wary of policy stability following the next Presidential elections in 2016.
“At least in the next two years there will be stability. The transition will be the thing investors will be asking and looking for,” he said.
After securing a license from the Securities and Exchange Commission, Religare is set to open a representative office here in the country within the next six months.
The Indian firm aims to generate research notes on up to 25 Philippine companies in the next 18 to 24 months. It, likewise, aims to foray into Malaysia and Thailand.
Religare Capital Markets is part of India's Religare Enterprises group and is an Asian-focused, emerging markets investment bank with global distribution.
Religare Enterprises is headquartered in New Delhi and is listed on the Bombay Stock Exchange and the National Stock Exchange in India. — BM, GMA News
“It [the Philippines] has the best macro story right now,” John Sturmey, a visiting managing director at Religare Capital Markets, told the local press Tuesday.
Sturmey said there were concerns about sustaining the country's economic outlook and low liquidity a few years back, but these have since waned.
“Now, the macro story looks sustainable, with the Philippines having been noted to be at a higher growth trajectory,” he noted, adding that the country's financial system is now flush with cash.
Last week, the government reported that gross domestic product (GDP) grew 6.6 percent in 2012, beating market expectations.
The country's stronger-than expected economic expansion came with a benign inflation figure of 3.2 percent for the whole of last year.
Sutha Kandiah, Religare's head of investment banking, noted that strong macrofundamentals and improving fiscal position have underpinned investors' expectations that the Philippines will finally notch the much-coveted investment grade rating.
Religare, likewise, noted the country's bullish domestic equities market, which the Indian firm plans to focus on in the near term.
“There's a good chance that the market will rise 20 to 30 percent this year,” said Sturmey.
On Tuesday, the Philippine Stock Exchange's main index reached a 15th record high for this year. The local bourse, which notched 38 records last year, increased by nearly 11 percent year-to-date.
Despite noting efforts of increasing public float and expanded trading hours, Sturmey said, “What is lacking in the [stock] market is retail participation.”
But Kandiah said this is a growth opportunity for the domestic equities market.
While the country is in a sweet spot, Kandiah also noted that investors are wary of policy stability following the next Presidential elections in 2016.
“At least in the next two years there will be stability. The transition will be the thing investors will be asking and looking for,” he said.
After securing a license from the Securities and Exchange Commission, Religare is set to open a representative office here in the country within the next six months.
The Indian firm aims to generate research notes on up to 25 Philippine companies in the next 18 to 24 months. It, likewise, aims to foray into Malaysia and Thailand.
Religare Capital Markets is part of India's Religare Enterprises group and is an Asian-focused, emerging markets investment bank with global distribution.
Religare Enterprises is headquartered in New Delhi and is listed on the Bombay Stock Exchange and the National Stock Exchange in India. — BM, GMA News
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