First Metro Asset Management Inc

FAMI First Quarter 2011 Outlook

The Philippine capital markets have been consolidating since the beginning of 2011. In all of 2010, the Philippine financial markets – fixed income, foreign exchange and equity – rallied to record levels.  Treasury bill rates touch a record low of 0.7% per annum late in 2010; five and ten year bonds surpassed previous lows in yield to as low as 5 ½ % in the five year  and 5 ¾ % in the ten.  The government issued a 25-year bond at an opening yield of 8 1/8 % which traded to as low as 7 ¾ % in the secondary market.  In the foreign exchange market, the US$/Php had gone to 42.50 in early November from around 46.50 in the beginning of 2010 on account of portfolio flows into the Philippine capital markets.  The PSEi was very strong touching an all time high of 4397 on November 5, 2010. The index closed at its highest year-end close on record at 4201.34 – up 37.7% on the year. Read more

First Metro Asset Management Inc