August 24, 2015

Philippines Q2 Economic Data Affect the Stocks

Photo By Mike Gonzalez (TheCoffee) (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0) or GFDL (http://www.gnu.org/copyleft/fdl.html)], via Wikimedia Commons


Manila August 24, 2015 PST 10:30 AM. Philippines stocks plunge down to 4-6% range as the release of second quarter Philippines economic data nears. Short selling became visible as traders became cautious, securing their investment from further price erosion.

The Philippines GDP data is set to be released on August 27, Thursday. Despite some positive sentiment regarding Philippines economic resilience, investors remain cautious as to what might happen upon the release of the economic data. The negative outlook was further boosted by global economic slowdown with China’s currency devaluation, Japan economic slowdown, and Greek crisis as some of the examples.

On the positive side, Philippines economy is seen to grow in the years to come. Recent rolling out of government infrastructure projects will spur liquidity to the market and create jobs. Property growth is seen as well as developers prepare for higher demand for housing in the next five years. Retail market is also seeing growth as number of consumers expands creating more demand on durable goods. In line with the expansion of retail market – retail credit market (credit cards and the likes) are seeing good business as well. All of these are being fueled by expanding business in the Philippines which are creating jobs especially in BPO sector; overseas work has also a big contribution in the development. Fiscal indicators also indicate that money flow is optimal with interest rate and inflation rate moving steadily.

Despite the ongoing developments, there are still many works to be done and plenty of works are still need to be created.


1 comment:

  1. This is unexpectable, with just one news everyone just start selling low.

    ReplyDelete

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