The Philippine Stock Exchange Index (PCOMP) dropped 5.7 percent to 5,578.53 at 10:20 a.m. local time, heading for the lowest close since Nov. 23. Ayala Corp. (AC), owner of the country’s biggest property developer, declined 4.8 percent. SM Investments Corp. (SM), owner of the largest shopping-mall operator and biggest grocery chain, slid 11 percent to the lowest level since October.
The PSE index has tumbled 16 percent this month amid concerns that reduced U.S. Federal Reserve stimulus will spur capital outflows and local protests over discretionary government budgets will slow state spending. Foreign investors have sold a net $219 million of Philippine shares in August after buying $1.6 billion this year through July. Global equities retreated this week on speculation the U.S. will take military action against Syria.
“There is global fear that the U.S. will tighten liquidity and then add the political tension in Syria,” said Rico Gomez, a Manila-based money manager at Rizal Commercial Banking Corp., which oversees about $2.8 billion. “There’s unrest for emerging-market assets.” From Bloomberg news
"In tandem with the increased confidence in our good governance is the continued resurgence of our economy. The results: two consecutive ten-place jumps in the global competitiveness index of the World Economic Forum. For the first time in history, we attained investment-grade status from two of the three most respected credit ratings agencies in the world, and it is quite possible that the third will soon follow suit. We have maintained the stability of our consumer goods prices, and we continue to reduce the portion of our budget allotted to paying our debts, while increasing the funds allotted to social services. In a period of lethargic global economic activity, we registered an astounding 6.8 percent GDP growth in 2012. We surpassed this in the first quarter of 2013, when we reported growth of 7.8 percent—the highest recorded GDP in East and Southeast Asia. Special mention must be made of the 28.5 percent contributed by the manufacturing sector to the growth of our economy. And we anticipate that manufacturing will gain even more traction in the coming years."
From Bloomberg News
In the Philippines, President Benigno Aquino forgot that 7.8 percent growth only matters if you create lots of jobs.
Senator Miriam Santiago believes that the pork barrel scam should never be forgotten, calling it the most sensational corruption scandal in recent Philippine history.