FIRST METRO VIEWS PHILIPPINE EQUITIES ON THE UPSIDE

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First Metro Investment just recently released the May issue of The Market Call, as published by the FMIC & UA&P Capital Markets Research.  This publication is a result of an in-depth analysis on the emerging and leading trends in the global and local markets that have shaped the direction of the Philippine capital markets in the last four weeks.  Here are the highlights of the May issue:                       

• Macroeconomy

The outlook remains slightly positive on the whole. A minor slowdown is expected in the 2^nd and 3^rd quarters, but a recovery may be in store for the last quarter of the year.  

• Fixed-Income Securities

Renewed risk-taking appetite as a result of the relatively better US banks' stress test results, ample market liquidity, low inflation rate, expectations of more BSP rate cuts, and a string of highly-rated corporate issues increased the demand for fixed-income securities. While the prospect of a higher budget deficit tempered the demand for long-dated government securities, brisk trading and insatiable demand were apparent for medium and short-dated government and corporate fixed-income securities.

• Equities Market

We are biased towards the upside in Philippine equities in anticipation of a 2010 recovery and hopefully further rate cuts by the BSP. For full details of The Market Call, please click http://www.firstmetro.com.ph/Market%20Call/TMC%20May%202009.pdf.