Marcos recovery plan may give Philippine stocks long-term lift

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Some investors remain hesitant about bongbongmarcos’ broad economic policies. Here is what analysts are saying.

Marcos, in his maiden state-of-the-nation speech on Monday, said he aims to raise revenue and sustain infrastructure spending at 5% of gross domestic product to spur annual economic growth of up to 8% from 2023 through 2028. The Southeast Asian nation is targeting to expand the economy by 6.5% to 7.5% this year.

The country’s benchmark advanced as much as 0.4% Tuesday. All sectors, except for a gauge of property developers, rose. The peso jumped as much as 0.9%, the most in more than two years. Marcos’s statement that there will no longer be any lockdowns amid the pandemic removes an overhanging uncertainty His determination to pursue the private sector as a partner for public investments would be favorable for conglomerates and infrastructure and construction-related stocks such as Ayala Corp., DMCI Holdings, Metro Pacific and cement companies“It is well thought out and full of promises.

“If you are confident this will be achieved, this could be the time to buy when there are still dark clouds above”“Investors should welcome and cheer this policy direction. His policies are very defined and clear. It’s definitely pro-growth and pro-business”

 

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