Thursday, July 21, 2011

Some insights from PAMI on the recent Market Run

Valued Clients,


Allow me to share with you some insights from our equity fund managers regarding the 5 straight days of market appreciation. They see the Phisix sustaining its current growth given the following reasons:


  1. Recent credit rating upgrades of the Philippines
  2. Increased OFW remittance and continued acceleration in the 2nd half of the year
  3. Increased loans growth of the banks showing continued money supply in the market. Stock prices of banks have been moving up given the banking sector’s stellar performance
  4. Better Corporate Earnings Report for the 2nd half of the year


All of the abovementioned are supportive of the bull trend and based on solid local fundamentals. They see shallow corrections along the way but no significant threatening drops.


With regard the US debt ceiling crisis, analysts are discounting the occurrence of the US letting their investment grade standing to be downgraded. Despite the nearing August 2 deadline and absence of any firm decision about the issue, Dow Jones last night increased 107.96 points. This is one of the biggest single day climbs since start of the year and proof of the investors’ downplay of the doomsday scenario. The prevailing problem in the Eurozone remains to persist making the ASEAN markets as the next viable investment haven.




My take: Let's Ride the Bull Run.



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