After a year of slipping, Philippine stocks are beginning in 2019 in the best way in the world. A dream start also caused foreign investors to pour money into the Philippine stock market despite their massive withdrawal last year. The Philippines has really left behind the title of one of Asia’s worst stock markets in 2018.
At the moment, Rizal Commercial Bank Corp and AB Capital & Investment Corp have all pumped money to buy Philippine stocks instead of waiting for stocks to rise in price to discharge goods as they did last year. At the moment, Philippine stock has increased by 4.9% with a record increase of 1.7% at 10.50 am on 8/1. This momentum helps Philippine stocks can surpass the resistance level of 8,000 points in this quarter.
Optimistic psychology covered the Philippine stock market thanks to data of inflation slowing for the second consecutive month after peaking for 9 years, marking the biggest slowdown since May 5, 2018. Besides, the fact that the US Federal Reserve has signaled to slow down the process of raising interest rates made investors more secure in the down payment.
At the moment, foreign investors have pumped $ 49 million into securities funds this year. It also marked the longest net buying of foreign investors in the last 5 months. Last year, foreign investors withdrew $ 1.08 billion from the Philippine stock market, contributing to accelerating the slump in this market.
Meanwhile, many foreign investors expect Philippine stocks can increase to 8,100 to 8,200 points in the coming time. That means a huge profit if money is down at this time. The main task of investors at the moment is to choose good stocks to invest and make a profit.
Nomura Chetan Seth and Jayant Parasramka analysts said that currently, banking stocks and consumer-related businesses are being sought by investors. In addition, cash flow is being poured into stocks with medium market capitalization and the largest enterprises in the market in the hope of boosting the benchmark higher, helping to increase the attractiveness of Philippine securities.
If optimistic signs continue to be maintained, analysts believe that Philippine stocks may hit 8,300 points or even 8,400 points. Good statistics in the first quarter of 2019 will greatly contribute to the growth potential of this Southeast Asian stock market and vice versa.
Even more optimistic, UBS AG strategist Jody Santiago, believes that slow inflation may boost spending and profit margins can surprise corporate profits. If these become real, Philippine stocks may rise to 8,900 points this year.
Going back to reality, it is hard to say that foreign capital inflows into the Philippines market are a reversal compared to the wave of withdrawals last year. However, it can be affirmed that pouring capital into the market shows that investors are very interested in Philippine stocks in particular and emerging markets in general.