ING, the global financial services group, has released data from its quarterly ING Investor Dashboard Survey that shows a major 18-percentage point increase in investor sentiment in the Philippines at 157 in the second quarter of 2010 from 139 in the first quarter.
Hitting its highest point since the fourth quarter of 2007, the Philippines nearly reaches very optimistic territory, signalling that investors are confident in the market.
The ING Investor Dashboard Sentiment Index for the Philippines ranks substantially above the overall pan-Asia (ex-Japan) ING Investor Dashboard Sentiment Index, which falls to 136 for Q2 2010 from 145 for Q1 2010.
Despite the drop, investor confidence continues to remain in the optimistic territory for the fifth consecutive quarter and the Index registers an 86-percent increase from the financial crisis low of 73 for Q4 2008.
The Philippines has been experiencing growth in investor confidence since Q4 2009, a trend that continued in Q2 2010, even as global recovery slows down.
“The fact that average daily turnover in stock market is higher 31 percent from a year earlier and mostly driven by local activity is affirmative of investors’ combined optimism on the economy and prospects of a new government,” says PJ Garcia, head and chief investment officer of ING Investment Management Philippines.
“Foreign investors have also been supportive of the local market after pumping in a net inflow of US$377 million to date.”
The rise in the Philippines’ GDP growth forecast this year from 3.6 percent to six percent in June on back of strong consumption may lead Philippine investors to be increasingly optimistic about the country’s economic situation in both Q2 2010 and Q3 2010.
The uptake in investor confidence was also spurred by improvements in key indicators such as the view on the stock exchange in the next three months, as well as return on investment (ROI) and personal and household financial situations.
Highlights of the Quarterly ING Investor Dashboard Survey
• The Philippine index is in the optimistic zone for the fourth consecutive quarter, hitting an all-time high of 157 in Q2 2010
from 139 in Q1 2010.
• The Philippines ranks as the second strongest driver of Pan-Asia (ex-Japan) sentiment and registered the greatest degree
of positive change in overall investor sentiment.
• Most Asia markets (ex-Japan) are more pessimistic in Q2 2010 than Q1 2010 in terms of local property price. The
Philippines is an exception, with the greatest increase in optimism towards property prices.
• Philippine investors see an increasing positive impact from U.S. economy on their investment decisions in Q2 2010; investors from other markets see otherwise.
• The Philippine Stock Exchange Index (PSEI) rose by 12 percent in Q2 2010, likely driving Philippines investors to increase their positive outlook towards both the stock exchange and the high risk/ high return investment sector in the next
three months.
• 75 percent of local investors believe that the new administration can promote a stable investment climate in the Philippines. (PR)
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