PH among top picks of NY-based investment firm

Sean Darby, a highly rated strategist from Jefferies

The Philippines ranks among the top 25 percent of the investment destinations handpicked by New York-based global investment house Jefferies Group, given the country’s growth trajectory and resilience to global economic woes.

“It’s one of the few countries that are still growing. It doesn’t have any period of economic problems behind it whereas the West is still grappling with those issues,” Jefferies Hong Kong Ltd. managing director, chief global equity strategist and global equity research chief Sean Darby said in an interview with the Inquirer Wednesday.

He said the Philippines had been reaping the benefits of the reforms instituted during the Asian crisis in the late 1990s.

“The institutions that have been put in place are actually very good and that bedrock has allowed the Philippines to flourish,” said Darby, a highly rated strategist.

Jefferies covers about 18 countries, about a third of which are emerging markets.

The good news for the Philippines and most peers in Southeast Asia, Darby said, was that none of their central banks needed the massive monetary stimulus  needed by Western economies.

In the last two to three weeks, however, Darby said global investors had sold down emerging market equities. He attributed these to profit-taking after a quiet bull run in recent months.  Jitters over the upcoming US elections and the US Federal Reserve’s monetary policy also contributed to the recent exodus of foreign funds, he said.

Asked about what investors thought about President Duterte – who had been widely criticized in media for his harsh comments on the US and the extrajudicial killings seen related to his war against drugs, Darby said investors had been “disconcerted” by some of the initial comments.

He, however, added that he would point out to people that former Thai Prime Minister Thaksin—who likewise had a very strong stance against drug abuse and corruption—was actually very liked. “In his first year or so, he was very popular because a lot of people had felt governments in the past did not deal with those problems,” he said. The same was true when Xi Jinping was elected president of China, having to centralize control because the prior leadership was weak, Darby added.

Overall, he said Asian emerging markets were more attractive than other emerging markets.

Also in the “top quartile” of Jeffereys is Indonesia, noting that President Jokowi had proven initial skeptics wrong.