July 21, 2019

Booming Philippine Markets Pin Hopes on Duterte for Next Rally
(Bloomberg) -- When President Rodrigo Duterte delivers his annual speech to the nation on Monday, he’ll have plenty to brag about. The Philippine economy is among the fastest-growing in the world and markets are booming.But global risks are rising amid the prolonged trade war, and investors looking for the next leg of the market rally will scrutinize Duterte’s economic priorities as he embarks on the last half of his six-year term. Top on their minds are the $180 billion infrastructure program and new tax policies.“If Duterte hits the right notes, markets would have another leg to rally on," said Jonathan Ravelas, chief market strategist at BDO Unibank Inc. “There’s great interest in these measures to be prioritized to sustain the kind of growth rates we’ve been seeing.”Duterte is scheduled to speak before lawmakers at about 4 p.m. in Manila., after market close.PesoIf history is any guide, there’s a big chance the peso will rise the day after the State of the Nation Address. The currency has risen in nine of the last 10 years, posting an average gain of 0.15%.“We remain bullish on peso and we would like to sell the dollar-peso on rallies,” said Qi Gao, a Singapore-based currency strategist at Scotiabank. The currency is among those that will benefit the most as the Federal Reserve’s dovish stance lures inflows, he said.The peso closed at 51.04 per dollar on Friday, near its strongest level since January 2018. The currency’s next resistance is at the 50 pesos a dollar, Gao said.StocksFor stocks traders, it may be bad news first before good news, according to three decades of data. On the day of the president’s speech, the benchmark Philippine Stock Exchange Index retreated about two-thirds of the time, and posted an average loss of 0.4%.The gauge recovered more than half of the time the day after since Congress was restored in 1987, posting an average gain of 0.3%. The trend will likely hold and given the current market momentum, the index will hit 8,500 sooner than later, according to Jun Calaycay, head of research at Philstocks Financial Inc., who called the bull market a week before it happened.“The market is used to Duterte’s controversial antics," Calaycay said. “But should he start talking about policy, regulation and his legislative agenda then that would be a plus.”Local BondsPhilippine peso bonds are outperforming peers in emerging-markets as the central bank embarks on interest-rate cuts. Ten-year bond yields fell below 5% this month from more than 8% in October.“Relative to the rest of EM world, the Philippines is an island of stability, continuing a pace of high growth and foreign investment,” said Edwin Gutierrez, head of emerging-market sovereign debt at Aberdeen Standard Investments in London, who remains long on Philippine bonds.Meanwhile, the government’s push to cut corporate income taxes will attract more foreign investors while the move to tax foreigners working in the offshore gaming sector will generate additional annual revenue, said Alan Atienza, treasurer at Philippine Bank of Communications in Manila.\--With assistance from Lilian Karunungan.To contact the reporters on this story: Ditas Lopez in Manila at dlopez55@bloomberg.net;Ian Sayson in Manila at isayson@bloomberg.netTo contact the editors responsible for this story: Cecilia Yap at cyap19@bloomberg.net, ;Tomoko Yamazaki at tyamazaki@bloomberg.net, Karl Lester M. Yap, Lianting TuFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Related Stories
Latest News
Top news around the world
Academy Awards

‘Oppenheimer’ Reigns at Oscars With Seven Wins, Including Best Picture and Director

Get the latest news about the 2024 Oscars, including nominations, winners, predictions and red carpet fashion at 96th Academy Awards

Around the World

Celebrity News

> Latest News in Media

Watch It
Olivia Munn Reveals Breast Cancer Diagnosis and Double Mastectomy Procedure | E! News
March 13, 2024
kUaEV1Kd3S0
Travis Kelce Shares Details From His Trip to Singapore With Taylor Swift | E! News
March 13, 2024
3YXi-Dgf4eg
Kate Middleton VIRAL Photo: Agency Addresses Photoshop Claims | E! News
March 13, 2024
S4VkO0TpkCY
Da'Vine Joy Randolph Plays 'Smash or Pass' With Iconic Moments From Her Career
March 13, 2024
vkPdJEF2BX4
Jean Smart Wears a Hotel Bathrobe to Present an Award to Hannah Einbinder l Power of Comedy SxSW
March 12, 2024
Bw7uVEYQev4
Lenny Kravitz Walk of Fame Ceremony
March 12, 2024
MlWq8BcnwhE
Dak Prescott Extortion Plot & Steph Curry for President? | TMZ Sports Full Ep - 3/12/24
March 13, 2024
jHFsrjs7OFY
A Japanese space rocket blew up after takeoff Tuesday, turning the sky into a fireball of smoke.
March 13, 2024
YkfJ3Qg8B7c
#KimKardashian and #BiancaCensori hung out at #KanyeWest's listening party Tuesday night!
March 13, 2024
EfwLLq6bx9k
‘Pioneer Woman’ Ree Drummond denies using Ozempic to lose 60 pounds
March 13, 2024
Omfjk1AlZ3A
Chrissy Teigen reveals her ‘boob lift scars’ in daring dress at Jay-Z & Beyoncé’s Oscars 2024 party
March 13, 2024
VxZ2qXAlpmU
Zoë Kravitz pokes fun at dad Lenny Kravitz's style during Hollywood Walk of Fame speech
March 13, 2024
j3-lcFu_1sQ
TV Schedule
Late Night Show
Watch the latest shows of U.S. top comedians

Sports

Latest sport results, news, videos, interviews and comments
Latest Events
17
Mar
SPAIN: La Liga
Atletico Madrid - Barcelona
17
Mar
ENGLAND: FA Cup
Manchester United - Liverpool
17
Mar
ITALY: Serie A
Inter Milan - Napoli
17
Mar
GERMANY: Bundesliga
Borussia Dortmund - Eintracht Frankfurt
17
Mar
ENGLAND: FA Cup
Chelsea - Leicester City
17
Mar
ITALY: Serie A
Roma - Sassuolo
17
Mar
ITALY: Serie A
Verona - AC Milan
17
Mar
ITALY: Serie A
Juventus - Genoa
17
Mar
GERMANY: Bundesliga
SC Freiburg - Bayer Leverkusen
17
Mar
USA: Major League Soccer
Atlanta United - Orlando City
17
Mar
ENGLAND: Premier League
West Ham United - Aston Villa
17
Mar
SPAIN: La Liga
Rayo Vallecano - Real Betis
17
Mar
ENGLAND: Championship
Leeds - Millwall
17
Mar
SPAIN: La Liga
Las Palmas - Almeria
17
Mar
SPAIN: La Liga
Villarreal - Valencia
17
Mar
SPAIN: La Liga
Sevilla - Celta Vigo
16
Mar
GERMANY: Bundesliga
Darmstadt - Bayern Munich
16
Mar
ENGLAND: FA Cup
Manchester City - Newcastle United
16
Mar
ENGLAND: Premier League
Fulham - Tottenham Hotspur
16
Mar
SPAIN: La Liga
Osasuna - Real Madrid
13
Mar
CHAMPIONS LEAGUE: 1/8 Final
Atletico Madrid - Inter Milan
12
Mar
CHAMPIONS LEAGUE: 1/8 Final
Barcelona - Napoli
12
Mar
CHAMPIONS LEAGUE: 1/8 Final
Arsenal - Porto
11
Mar
ENGLAND: Premier League
Chelsea - Newcastle United
10
Mar
ENGLAND: Premier League
Liverpool - Manchester City
10
Mar
SPAIN: La Liga
Real Madrid - Celta Vigo
10
Mar
ENGLAND: Premier League
Aston Villa - Tottenham Hotspur
10
Mar
ITALY: Serie A
Juventus - Atalanta
10
Mar
ITALY: Serie A
Fiorentina - Roma
10
Mar
ITALY: Serie A
AC Milan - Empoli
09
Mar
GERMANY: Bundesliga
Werder Bremen - Borussia Dortmund
09
Mar
ENGLAND: Premier League
Arsenal - Brentford
09
Mar
ITALY: Serie A
Bologna - Inter Milan
Find us on Instagram
at @feedimo to stay up to date with the latest.
Featured Video You Might Like
zWJ3MxW_HWA L1eLanNeZKg i1XRgbyUtOo -g9Qziqbif8 0vmRhiLHE2U JFCZUoa6MYE UfN5PCF5EUo 2PV55f3-UAg W3y9zuI_F64 -7qCxIccihU pQ9gcOoH9R8 g5MRDEXRk4k
Copyright © 2020 Feedimo. All Rights Reserved.