FIRST METRO VIEWS PHILIPPINE EQUITIES ON THE UPSIDE
Written By Angelo Silva
Published on May 27, 2009
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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:
The outlook remains slightly positive on the whole. A minor slowdown is expected in the 2nd and 3rd quarters, but a recovery may be in store for the last quarter of the year.
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.