By Leslie D. Venzon
MANILA, March 29 (PNA) — Investing in Philippine stock market offers tremendous opportunities for potential investors, as domestic sectors continue to benefit from the current macro-economic climate.
“We are extremely bullish (in the market),” said Philippine Stock Exchange (PSE) President and Chief Executive Officer Hans Sicat during the Latham & Watkins’ second Annual Philippine Investment Conference.
Sicat noted that the favorable macro-economic settings and pre-election spending boost the local equities market.
He said various sectors are benefiting from the country’s robust economic growth, including financials, property, industrial and services.
For one, Sicat cited the consolidation activities involving the banking companies and the strengthened capitalization of banks and insurance firms.
Sicat sees capital raising through the stock market to be led by banks, while he also encourages the small and medium enterprises (SMEs) to list.
In 2014, capital raising by banks reached an aggregate amount of PhP44.57 billion, in compliance with Basel III requirements, among others.
Such Basel rules seek to increase the quality and required level of banks’ capital in an effort to strengthen their capacity to absorb risks.
Further, the PSE chief also expects more bond and equity issuances to support economic growth.
“Bonds will continue to attract foreign capital. Bond issuers will take advantage of low inflation and low interest rate environment,” he said. (PNA)