Bond, equity markets to grow further in ’13
The country’s bond and equity markets are seen to grow further in 2013 as expectations of an even faster growth of the economy are seen driving more portfolio investments.
The Capital Markets Institute of the Philippines (CIMP), an organization of financial educators and capital market players, said it projected the country’s capital markets to be vibrant in 2013 and defy supposed adverse effects of a lingering global economic slowdown.
“Philippine markets are expected to grow further next year consistent with the expectation that the economy will grow faster,” CIMP chair Reynaldo Nograles told the Inquirer.
This year, the Philippine Stock Exchange index (PSEi) breached the 5,400 mark to register new highs and corporate bond issuances in the country were the biggest in the region. Huge demand for government securities has also brought treasury bill rates across all maturities to below one percent.
“Investment sentiment for the Philippines is very positive. Moreover, inflation and interest rates are low and conducive for production and this should boost demand for funds from the capital markets,” Nograles said.
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