MANILA -- Investors will "wait and see" how the deals forged during Chinese President Xi Jinping's visit to the Philippines will pan out, an analyst said Wednesday.
Twenty-nine deals were signed late Tuesday as President Rodrigo Duterte hosted Xi Manila, including a memorandum of understanding on cooperation on oil and gas development.
"We are still at step one of what will likely be a multi-step process," said Teneo Holdings managing director for Southeast Asia Bob Herrera-Lim.
Xi's 2-day state visit that will end Wednesday is an opportunity for Duterte to show that "they are making some progress" after resetting ties that were strained by disputes in the South China Sea, Lim said.
The oil and gas deal will be beneficial for stocks with stakes in oil and gas, said BPI Securities head of active advisory group Tristan Valerio.
Shares of PXP Energy, which is seeking to partner with China National Offshore Oil Co, for joint exploration were up 2.44 percent in early trading Wednesday, compared to a 0.77-percent decline in the main index.