The Philippine stock market is expected to remain healthy at least until 2014 based on an “analytical point of view,” said the executive of the country’s local bourse.
Hans Sicat, Philippine Stock Exchange president and chief executive officer, said that the local equities market is still in a growth cycle, and its robustness is expected to last at least until next year, further clarifying that the market is not yet in a bubble stage.
“We’re doing it mainly from analytical point of view. No reason why the market will go down,” he said.
Sicat added that the steep correction of the market in the previous month was just an “overreaction” toward certain global uncertainties.
“Other markets started to assume that this is a massive correction [market’s entry in bear market in June],” Sicat said.
“All was a copy-cat nervous reaction to what happened in the US. And of course, everybody was trying to basically take back. I wouldn’t say that it was a fundamental change, that was just more of a reaction to what was happening,” he added.
Moreover, Sicat specified that firms that are publicly listed are poised to register growth this year.
“Listed companies are still giving us guidance of a double-digit earnings and revenues growth for 2013,” he said.
Philippine shares entered the bear territory on June 25, after the main index fell by 181.99 points, or 3.05 percent to close at 5,789.06.
Madelaine B. Miraflor