Positive outlook for the Philippines at Citigold’s annual customer event

MANILA, Philippines — Fund managers are optimistic about the Philippines’ prospects in the Citigold Annual Chinese New Year 2022 Market Outlook Webinar hosted by Citi.

The virtual event was hosted by Citicorp Financial Services and Insurance Brokerage Philippines Inc. (CFSI) President, Ramon Melchor Tejero, with Citi Philippines CEO, Aftab Ahmed welcoming approximately 600 customers in attendance.

A brief customer survey was conducted by Tejero at the start of the event. In the survey, 50% of respondents said they invest in stocks when asked about their current wealth portfolio bias. When asked two years into the pandemic how their investment appetite had changed, 49% said they were invested in income-generating assets (like dividend-paying investment funds) other as fixed income securities or bonds.

Finally, 56% see the upcoming presidential elections as the biggest concern in the current investment landscape.

“The pandemic has posed challenges over the past two years and although it has weighed on businesses and economic activity, the economy, as well as many businesses, has remained resilient. This is supported by the fact that the country’s macroeconomic indicators have remained strong and the country’s ratings have remained unchanged,” Aftab said, kicking off the evening on a very positive note.

“OFW remittances continue to support consumer spending and the BPO sector is expected to continue to grow. We are very confident that the economy will continue to gain an even stronger footing this year and that business activity will continue to increase. “, Aftab said. , starting the evening on a very positive note,” he continued.

He also thanked Citigold customers for their continued support: “We want to assure you that we will remain highly focused on delivering relevant financial solutions to meet your banking needs and wealth management priorities.”

Featured speakers at the event echoed the positive sentiment, with BPI Investment Management Inc. Chairman and Chief Investment Officer Roberto Martin Enrile sharing that in the equity market, the Philippines Stock Exchange Index (PSEi ) is expected to reach 8,600 this year, driven by the 27% growth in weighted earnings of the sector in addition to the trend growth of 38% to 39% in earnings per share (EPS) seen in 2021

The prediction was made late last year before the recent resurgence of COVID-19 infections due to the more contagious variant of Omicron.

Enrile added that the real estate sector led the pack with growth of more than 40% as mobility increased and demand for office space picked up, followed by conglomerates and banks due to rate hikes. imminent as well as better net interest margins.

Christopher Wong, client portfolio strategist for Southeast Asia at Fidelity International, also said inflation has captured the attention of investors over the past two months as the global economy continues to struggle with inflation. spread of the Omicron variant.

Wong mentioned that inflation has risen quite sharply in recent quarters due to supply chain disruptions which are expected to normalize in the near term as well as rising wages, rising costs and prices. housing, particularly in the United States, and climate change policies.

For his part, BlackRock director and product strategist Fred Wood said the Omicron variant could be the beginning of the end of the COVID-19 pandemic, as a high transmission rate boosts population immunity, but also with less severity.

Wood said healthcare stocks will continue to do well as the number of people over 80 is expected to rise to 290 million by 2050 from 140 million currently. In addition to the health sector, Wood is also positive on the topic of sustainable energy, particularly in the areas of clean energy, energy efficiency and clean transportation.

Economists and analysts have painted a bright outlook for the Philippines as it continues to recover from the impact of the global health crisis by accelerating the deployment of COVID-19 vaccines, leading to a further reopening of the economy. .

Comments are closed.