Philippines economic improvements recognized by international experts.
Global stocks were mixed as concerns about stimulus in the United States still lingers. Over the weekend, markets were on guard as President Trump tested positive with COVID-19 on Friday, but markets went up on Monday as US President Donald Trump’s health is showing good progress.
In one week, indexes returned positively S&P 500 +1.68%, DOW +1.88% and MSCI ACWI +1.86%. The recovery over the week also comes as Trump appeared to soften his stand on stimulus.
Economic improvements are helping Philippine stocks finally bid goodbye to the club of the world’s worst major markets. Over the week, the PSEi seemed to move slightly returning 0.06%, with peak on Oct 2 at close to 6,000 levels. PSEi declined following the news on President Donald Trump’s positive COVID-19 test result and sudden decision to stop talks on economic stimulus. PSEi was also pulled down as investors focused on secondliners.
Government securities are relatively quiet as investors remained defensive given the absence of any clear catalysts in the near-term. Investors are seen to be moving investments from three-five-year bonds to shorter-tenor. Rates will likely move sideways to down as investors expect inflation to remain within the central bank’s target in the next two years. Traders said rates of the T-bills may decline by five-10bps amid ample liquidity in the market and low inflation rate.
Philippine economic improvements recognized by international experts:
Economic improvements are helping Philippine stocks finally bid goodbye to the club of the world’s worst major markets PSEi has climbed almost 3% over the past month, outperforming the little changed MSCI Asia Pacific Index and its Southeast Asian peers.
· The unexpected pickup in overseas remittances from Filipinos working abroad helped kick start a boost in sentiment.
· A potential rise in consumer spending and positive seasonal stock returns in Q4 started to gain pace among investors and analysts.
· Expectations of an economic rebound could propel the Philippines to 7,000 next year.
· BSP’s view also is that the economy has already seen its worst and PSEi could see further upside.