Philippines seen attracting more foreign funds on growth prospects

ABS-CBN News

Posted at Jul 08 2019 11:13 AM

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MANILA -- Strong economic growth in the Philippines is likely to lure foreign investors searching for higher yields, an analyst said Monday.

The market has yet to price in the prospect of a slower policy easing pace by the Federal Reserve, following the influx of strong economic data in the US, said Julius Baer managing director Mark Matthews.

"The narrative is changing," Matthews told ANC's Market Edge.

"There is a search for growth in the world. There's a search for yields. Countries that grow attract funds and the Philippines is one of them," he said.

Inflation is "in check" making the case for lower interest rates, he said. "That's beneficial for the stock market. It's a very rate sensitive stock market."

The peso is at the strong end of the Bangko Sentral's forecast of P52 to P54 to the dollar, said Chinabank CFO Patrick Cheng.

The local currency opened at P51.20 to the dollar from P51.195 last Friday.