MIGUEL R. CAMUS
Read full report: http://www.businessmirror.com.ph/home/top-news/20711-phl-emerging-as-safe-haven-for-investors
Philippine equities will continue to attract investments next year amid stable economic and political prospects, UBS Investments said on Wednesday. But higher stock valuations versus peers and possible disruptions from the European sovereign- debt crisis could pose profit-taking scenarios during the early part of 2012, it added.
“The Philippines is emerging as a safe haven. Normally with risk aversion, Philippines gets the brunt of the selling. Now it seems to be the reverse,” Jody Santiago, executive director of UBS Investments Research, told reporters on Wednesday.
In a briefing, the domestic unit of the Swiss banking giant pegged the one-year target for the benchmark Philippine Stock Exchange Index (PSEi) at 4,700.
That would be a gain of almost 10 percent from the PSEi’s 4,285.93 close on Wednesday and also reflects UBS Investments’ outlook that Philippine corporate earnings will grow by a tenth in 2012.
Santiago pointed to other factors, such as the country’s minimal sovereign-debt risk and stable
price increases as measured by inflation, which it expects at 3.5 percent. The country’s economic growth is pegged at 3.3 percent next year.