February 03, 2013

Philippines One of the Most Favored Markets by JP Morgan

“We’ve been overweight on the Philippines since 2009 and we have no intention of changing that view,” said Adrian Moet, JP Morgan’s chief for Asian and emerging market equity. 

This is really a good indication that the Philippines stock exchange market is boosting in a high rate. JP Morgan is one of the biggest global investment banks in the world and really has a complete domination in banking and finance industry in the United States.

And being again favored in their stock markets this 2013 will give a big impression to Philippines' neighboring country that its economy is growing rapidly. Another good news is that JP Morgan believes that the Philippines' main local index could extend its winning streak by another 15% this year.

JP Morgan has conducted a Forum for large institutional investors keen on Philippine equities and this year's forum is the biggest one that they have ever conducted for seven year having approximately 70 institutional investors. Most of them are long-term investors who are still new to the Philippines. 

Taking the opportunity to speak, Moet flew from Singapore to join the forum. He said "From the perspective of the international equity investor, the Philippines is delivering low currency risk, high economic growth and high (corporate) earnings growth and that’s a very attractive proposition particularly against a still quite troubled world."

Philippines together with Turkey, Thailand, India, and Mexico are JP Morgan's choices to give an "Overweight" rating. This means that it's a recommendation to accumulate stocks in excess of a benchmark index, usually the closely-tracked MSCI index.

However, on the other hand, other countries that are believed to have greater economies that Philippines have given the rating "Underweight" because of some major reasons. The list includes Brazil, Taiwan and South Korea. While mainland China gets "neutral" rating.