Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home  >>   Daily News  >>   Philippines News  >>   Investment  >>   Risk aversion stressed
NEWS UPDATES Asean Affairs     10 October  2011                       

Risk aversion stressed

Related Stories

September 21, 2011  Philippines gets unexpected investment

September 13, 2011
Philippine FDI increases

September 2, 2011
Philippine hot money flows double

August 31, 2011
 Investment fund likes Philippines

July 18, 2011
Philippines drops partnership fund

June 30,2011
Court ruling on foreign ownership hits Philippines

May 23, 2011
State fund invests in Philippine market

Global risk aversion is expected to reign in the short term as European leaders squabble over measures to address a debt crisis at a time when the US economy is slowing, the Metropolitan Bank and Trust Co. in the Philippines said.

In a commentary, Metrobank said if leaders in advanced economies do not provide concrete contingency plans for Europe’s debt crisis and US’ decelerating growth, such issues will continue to haunt markets in the near term.

Increased portfolio flows to safe-havens, such as government securities, can be expected in the following weeks as players grapple for further direction.

“Compared to the situation in the previous month, it now seems like the heightened global concerns are making themselves evident in our domestic indicators. The peso reached its eight-month low; volatility in the equities market underscores these worries as there is no clear direction reflected in the movement of equities for now,” Reynaldo said.

As the growing macro and sovereign debt concerns weigh on global investors, foreign portfolio investments to the Philippines in the first three weeks of September were subdued.

Data from the Philippines central bank, the Bangko Sentral ng Pilipinas, showed that hot money yielded a net inflow of $38.42 million, down 71.5 percent from $134.83 million in the same period last year.

The three-week flows ending September 23 brought the cumulative foreign portfolio investments to grow by 147 percent to $3.35 billion compared with $1.355 billion in the same period last year.

Analysts noted that these flows came from investments in fixed income peso government securities, coupled with quarter-end window dressing, supportive rhetoric from international leaders and oversold technicals.

The BSP maintained that the reversal of capital flows would be temporary and that hot money will flow back to emerging economies “when the dust cleared.”

Registration of foreign investments with the BSP is voluntary. It entitles the non-resident investor or their representative to buy foreign exchange from authorized agent banks or their subsidiary/affiliate foreign exchange corporations for repatriation of capital and remittance of related earnings.

“Moving forward, market risks remain at elevated levels and the ‘hope’ rally may peter out earlier than expected. Given the emotionally driven investment backdrop, players would be ‘sellers on rallies’ rather than ‘buyers on dips.’ Keep your heads down and brace for more volatility. Active management is the key in preserving wealth,” Metrobank said.


Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to  your.views@aseanaffairs.com

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
 
or
submit your comment in the box below
Name

Name


Email

Email





 
Today's  Stories    10  October  2011 Subsribe Now !
• Cambodia’s flood toll rises Subcribe: Asean Affairs Global Magazine
• Time to invest Asean Affairs Premium

• Risk aversion stressed

Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Small businesses promoted in Philippines
• Singaporeans go for two degrees
• Thai central bank estimates flood damage
• Small distillery receives Asean energy award

• Vietnam’s flood death toll rises

pp

• Vietnam considers auto tariff drop

 

Asean Analysis              10  October  2011

Advertise Your Brand
• WEEKLY SUMMARY Sponsor Our Events

Asean Stock Watch      10  October  2011

 
• Asean Stock Watch-October 10 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan

ASEAN  ANALYSIS

This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2014 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com