MANILA, Philippines - Philippine Stock Exchange president Hans Sicat says foreign investors are not worried about analyst warnings that Philippine shares are expensive compared to other stocks in Asia.
Sicat, who held an investment roadshow to promote the PSE in Hong Kong last month, says the investors he has spoken to are more concerned about the Philippines getting an investment grade status.
"In Hong Kong, valuation wasn't really a concern, they were more concerned about continuity, what happens after 2016, natural disasters... They are really interested because of our growth story, strong consumption. Corporate earnings are growing 20% - 19%, that will justify prices, and make P/E ratios lower," Sicat said.
Analysts had said last year's rapid growth of 33% had made local shares expensive.
The PSE index has soared over 11% since the start of 2013.
Sicat leaves for Japan tonight for the PSE's second roadshow for this year. He will be accompanied by officials of some of the top listed companies such as Jollibee, San Miguel and SM Investments.
Sicat says the Japanese are frustrated the haven't been able to capitalize on the growth story of the Philippines.
"Most of Japanese funds are investment grade only, so they are frustrated that they can't invest in the Philippines. Once we get investment grade status, they will be raring to come in," he said. - ANC