Although some investors are still cautious given the uncertainties brought by the COVID-19 pandemic, experts believe that majority are increasing their investments in the coming months and optimistic about the reopening of the economy.
Whether growth drivers or potential risks, what else should investors watch out for on the prospects of the country’s stock market in 2022?
Learn that and more in BusinessWorld Insights themed “Philippine Stock Market: Prospects in 2022” in partnership with Meralco and Security Bank.
My Notes and Takeaways from Philippine Stock Market: Prospects in 2022
April Lee Tan, COLFinancial
Risks are the rising inflation, FED rate hikes, COVID, and elections
There are also risks to being too cautious and not participating in the market
The local stock market historically went up 3 months before and 3 months after the election
We are coming from a low base from the lackluster performance last year
It’s an open secret that the markets like Leni Robredo
The government is not as strict anymore in terms of lockdowns and people might be thinking that there might be another surge
“If the US sneezes, everyone catches a cold.” It’s a “buy on dip” market.
We are in the transition from being in a bear market to a bull market
Consumer stocks are not doing well but the media stocks are doing okay
The negatives are already priced in
Angelo Taningco, SB Equities
The local stock market underperformed last year compared to neighbors due to intermittent surges and lockdowns
Optimism this year was fueled by the economic data being above expectations
Cautiously optimistic in the near term also due to geopolitical concerns (Russia vs. Ukraine)
The economic agenda of the next administration is also a source of uncertainty
Core inflation is a good indicator of demand-pull
FED rate hikes may have knee-jerk reactions to stocks and bonds (The first one will be in March)
The geopolitical risk is coupled with rising inflation, rate hikes, and monetary tightening
We are in the recovery phase and on track to continue
Cautious in the short-term and still positive in the medium to long term for the local market
John Michael Lapiña, Investa
We need more volume of trading/liquidity in the local market to make it more attractive
Watch out for these industries: Renewable Energy, Technology, and Mining
7% of Nickel supply is from Russia
The mining sector and gaming sector can unlock more value for the Government
PH is one of the hotspots for renewable energy for foreign investors
Traders see the local stock market as being top-ish, it will take time to reach a new high
We need to list more companies in our local stock market
Given the volatility, it will be a trader’s playground
Money can be made in a bull market but wealth can be made in a bear market
In a “wait-and-see” approach due to what may happen to the Russia and Ukraine conflict
How about you? What are your key takeaways?
Remember, before even thinking of investing, make sure you have your financial foundation set in place.
Have good cash flow, minimize debt, and make sure you have life and health insurance.
When he is not busy watching "The Office", lounging at the beach, or playing 1st person shooting games, Argel consistently invests in the stock market, both local and global. He loves learning through books, training, seminars, and workshops. He also helps Pinoys create, manage, grow, and protect their wealth as a globally-certified Professional Financial Advisor. Get in touch with him by sending an email to contact[at]argeltiburcio.com
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