MANILA, Philippines - State-run Government Service and Insurance System (GSIS) plans to increase its investments in the equities market amid high expectations the Philippine Stock Exchange will continue its bull run.
Robert G. Vergara, president and general manager at GSIS, said the fund's exposure to the local stock exchange may grow by 18% to 19% this year from 15% last year.
"I think the 6,500 level will be exceeded, I will not be surprised if the market runs up to the 7,000 level this year," Vergara said in a briefing on Friday.
He noted GSIS is eyeing to put in more investments in banks, property firms and gaming companies. However, Vergara said the fund started selling stakes in mining firms because of the pending rules and regulations for the sector.
Last year, GSIS earned P104 billion in revenues from the equities market. For 2013, Vergara said the fund is expecting an additional P12 billion to P20 billion if the PSE index ends between the 6,500 to 7,000 level.
The state-run fund has P685 billion worth of funds it can tap for investments in the stock exchange.