I don’t know if this story will make it to newspaper dailies tomorrow. What I do know is someone is very bullish on the Philippines.
JP Morgan is a global financial services giant, Wiki says one of the oldest in the world. In May, it was third in the Philippine Stock Exchange’s broker ranking.
Last month, it held its first investor conference in the Philippines since the 1997 Asian financial crisis. Now, it’s saying the key Philippine Stock Market index (PSEi) may reach 4,400 by mid-2008. Reminds me of the “blue skies” foreseen by Association of Securities Analysts of the Philippines (ASAP) president Francisco Liboro. He said in this article that once the market hits 3,700, the sky’s the limit. That means the market will be in uncharted territory.
If you agree with JP Morgan, wait before the market dips a little before adding to your equity fund holdings. Stock analysts believe the market is likely to undergo some correction in the next few days. Buy low, so you can maximize your returns. Then hold on tight. It might not be too late to ride the bull run after all.
It’s increasingly hard to find pessimists these days. If you don’t think the market and the economy will grow well this coming year, do let me know and tell me why. I’m interested in finding “contrarians.” 
So What Chocnut snippet:
What is the PSEi?
It’s the Philippine stock market’s key index, composed of a basket of 29 companies. It used to be called the Phisix. It’s a widely accepted barometer of stock price movements. The composition of the PSEi was modified last year to make sure stocks included in the index meet rigid criteria.
Do not confuse the PSEi with the PSE itself. The PSE is a private organization that ensures an efficient market for the buying and selling of shares, “efficient” being a relative term of course, in case you are going to compare the PSE with the Dow Jones or the NASDAQ.
Other business articles for those who want to be in the know:
Gov’t proposes P1.227T budget for 2008
Government is the country’s biggest “economic entity.” Its budget is a major factor in how the economy moves. I used to pore over national government budget documents at the DBM. Lots of stories there.
(UPDATE) Shares close higher on bargain hunting
Mining boom amid buoyant metals prices
This article gives a very good situationer on the mining industry.
BSP siphons off P200B in excess liquidity
Can you imagine that kind of money “sloshing” all over our financial system? Scary.
Money changer, 4 others nabbed for duping balikbayan
Practical note if you intend to travel to the Philippines with dollars in your pockets, or you know someone who will. Small money changers may offer better rates to lure you. Be sure you are not alone, even if you feel you can trust your friendly neighborhood changer and be sure they count the money well in front of you. Uhh…You know what? Go for more secure establishments instead.
June 13th, 2007 at 11:21 am
salve:
Here’s a contrarian view. In technical analysis, when prices are at record high, that’s a signal to sell. When you’re on top, there’s nowhere to go but… up?
Granting the bullish prediction will come true - 4,400 by mid 2008. That’s 23% up from today’s index. I earn 20% on fixed income. A 3% spread will not entice me to gamble in the stock market. But as I said before, it depends on your available investment options.