The Philippine stock market is one of the “hottest” in the world so far this year, according to a CNN report.
On the CNN Money website, the Philippine Stock Exchange index (PSEi) was ranked the 5th “hottest” stock market in the world, after Kuwait, Argentina, United Arab Emirates and Japan.
The PSEi has rallied 20% so far this year, as it breached the 7,000 level for the first time ever. The main index has reached 27 new all-time highs so far this year.
Investors have flocked to the Philippines as the country earned its first ever investment grade credit rating from any ratings agency last March.
CNN Money quoted Ashraf Laidi, chief global strategist at City Index in London, as saying investors have been attracted to the Philippines “because it’s shielded from the economic slowdown in China.”
“The economy doesn’t depend on exports to China like many other countries in the region… It’s more tied to domestic consumption,” Laidi said.
Barely four months after it first breached the 6,000 level, the PSEi breached the 7,000 level last April 22. Analysts and fund managers are betting the PSEi will continue to rise, driven by optimism on the Philippine economy and further cut in interest rate of special deposit accounts (SDA).
The Palace earlier said the PSEi’s record highs is a “manifestation of continued confidence in the prospects of our economy, not only from the international community, but also from Filipinos who are raising their stake in our country’s success.”