The group of taipan George Ty expects its automotive business under Toyota Motor Philippines (TMP) to get a big boost from the rise of the domestic economy as per capita gross domestic product (GDP) is seen to hit $3,000 in the next few years.
Local stocks are seen exploring new highs this week as ample financial liquidity in a low-interest environment may keep risk appetite buoyant.
The local stock index is seen testing its resilience above 7,200 this week as the country conducts its midterm elections alongside a new public listing by Friday.
Following a spectacular week of gains, analysts remained positive on Philippines stocks. The consensus is that high valuations can trigger pockets of profit-taking but the overall trend remains bullish and even “euphoric” for now.
The peso is expected to stay in the 41-to-a-dollar territory throughout the first semester as the government tries to curb the currency’s appreciation resulting from robust foreign exchange inflows.
After cutting the rate on special deposit accounts (SDAs) by a total of 150 basis points, the Bangko Sentral ng Pilipinas is not likely done
with the current monetary easing cycle, a Bank of the Philippine Islands economic research said.
The local stock index may retest recent record highs past 7,100 this week on the back of upbeat first-quarter corporate earnings reports, month-end window-dressing and record-low interest rates.
The Bangko Sentral ng Pilipinas has expressed optimism that the economy was poised to again grow beyond 6 percent and exports to expand at a faster pace in 2013, citing favorable indicators so far this year.
The Philippines has grabbed the spotlight amid a lackluster global economy, with a think tank describing it as a “rising star” poised to record one of the fastest growth rates in the world and a credit-rating firm raising its growth forecast for the country.
Fitch Ratings said the Philippines and countries in the Asia-Pacific were likely to remain the most resilient to global economic weakness among the regions in the world until 2014 given the strong domestic demand in these economies.
Monetary authorities are expected to keep policy rates and special deposit account (SDA) rates unchanged on Thursday’s meeting in the wake of recent steps taken to stem speculative inflows.
Metrobank expects remittances from overseas-based Filipinos to grow by at least 6 percent this year and sustain robust household consumption in the country.
