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Investment Sector: Emerging Markets Submitted by Lovephileo 
, WEB CONSULTANT / PASTOR
at LIGHT OF THE WORLD CHRISTIAN CENTER
7 months ago Tags: emerging market peso slowdown bonds currencies philippine peso Stocks Add Tag |
Traders said, as prices go up the peso slides further owing to risk aversion to emerging markets. Marcelo Ayes, Vice-president of RCBC said that investors have no interest to invest in the emerging markets stocks and bonds as they invest more in a safer haven like the US treasury. The currencies in the emerging market are slightly weak because of continued concern over expected aggressive cut in the FED rate as the US economy is expected to slide. The Philippine peso fell 0.8% to 41.20% its weakest since late January. Most of other Asian currencies likewise fell even as the US dollar tumbled. Asian stocks fell to a seven-week low as investors fled risky assets as the MSCIs measure of stocks in Asia excluding Japan fell by 2.0%. Some bank analyst expect peso to further improve the third quarter and end the year at P37.50 as the government sustains good fiscal position.
However, the National Statistic Office (NSO) reported that inflation rose to 5.4% year on year in February from 4.9 in January, bringing the year to date average to 5.1%.
Banko Sentral ng Pilipinas (BSP) said that the increment arose from higher prices of rice, fruits and vegetables, fish, meat, rentals, transportation, communication services, education services. fuel, dairy products, miscellaneous food and cereal poduicts.
Meanwhile, a professor at the University of the Philippines (UP) worried about the neagative impact of such slowdown in world economy on millions of overseas Filipino workers. About 50% of total remittances to the Philippine come from the US and Canada. As the economics of other major host countries also slowdown the remittances to the Philippines will also be affected.
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