Equity market: Tough times in the short term

RAFAEL GARCHITORENA, chief strategist of Deutsche Regis, remains bullish on the local equity market over the medium term as a strong economic story unfolds. He is quick to warn against short-term challenges the market faces, however.

He is worried that the worst may not be over yet, despite the local bourse’s losses in the past couple of years. Foreign investors continue to be net sellers while locals continue to support the market, providing cushion against excessive drop in the PSEi.