July 13, 2012 Philippine Stocks Index Actively Traded Stocks

A recent upgrade of the Philippine credit rating to a point one knots below investment grade was recently graded this month by private agencies Moody's and S&P (Standards & Poor). It is because of the positive economic outlook of international investors to this country together with the other ASEAN countries. In the first quarter of this year it was found out that the breakout nations with higher GDP rate throughout the world is China and was seconded by the Philippines. The regional outlook of foreign investors to this five ASEAN countries is very bullish amidst  the danger of equity investments currently taking place in the European and US zones. Foreign fund & big institution managers are eager to invests their funds in these growth areas. Last June this year  MSCI Asia Pacific have included three companies in the Philippines in their recommended list of viable stocks. These includes Puregold Price Club Inc., Philix Petroleum Corp., & DMCI Holdings.

Here are the current actively traded securities in the Philippine bourse.

1. Ayala Land Inc.
2. Philippine Long Distance Telephone
3. GT Capital Holdings
4. Megaworld Corporation
5. Abacus Consolidated Resources
6. SM Prime Holdings Inc.
7. Metro Pacific Investment Corp.
8. JG Summit Holdings Inc.
9. Robinsons Land Corporation
10. Alliance Global Group Inc.
11. Security Bank
12. Ayala Corporation
13. Puregold Price Club, Inc.
14. BDO Universal Bank
15. SM Investment Corp.

Abacus Consolidated Resources is the only third liner stocks that belongs to today's top actively traded stocks. GT Capital Holdings is the recent IPO stock offered almost two months ago which is managed by the Metropolitan Bank &Trust Company. All other stocks are included in the Philippine main index except Security Bank & Puregold Price Club Inc.

"Breakout Nations: In Pursuit of the Next Economic Miracles"

The title of this blog is a book written by Ruchir Sharma. Let me share to you a good news from yahoo finance describing the status of the Philippine economy in the coming decade as explained by Sharma in his book "Breakout Nations". 

The New “BRICs”

http://finance.yahoo.com/blogs/daily-ticker/brics-123351582.html

By Bernice Napach

The BRIC countries—Brazil, Russia, India and China—were the stars of emerging markets in the last decade, but now their growth is slowing. So who will be the next big leaders among developing economies?

Ruchir Sharma, head of emerging market equities and global macro at Morgan Stanley, tells The Daily Ticker's Dan Gross that the next countries investors will flock to are Poland and the Czech Republic in Europe and the Philippines, Indonesia, Thailand and Sri Lanka in Asia. He discusses them all in his new book, "Breakout Nations: In Pursuit of the Next Economic Miracles."

Sharma defines breakout nations as countries that beat economic expectations by a wide margin. "People tell me if India grows at six to seven percent what's the big deal? I say it matters a lot because when you expect eight to nine percent and you come up with six percent, that's a big disappointment."

Another key indicator: per capita income. The lower it is the easier for those economies to grow, says Sharma.

Sharma says Poland and the Czech Republic are the "sweet spots" in Europe. They're part of the European Union but aren't on the Euro, and that gives them more flexibility to manage their economies.

Poland was the "only economy in Europe that didn't contract in 2008 and 2009," Sharma says. Both Poland and the Czech Republic have "manageable debt levels" and are attracting investments from foreign countries, which boosts growth, he adds.

His "breakout nations" picks in Asia are the Philippines, Indonesia and Thailand. All three "suffered a lot in the 1990s when China devalued its currency and took away a lot of their manufacturing base," Sharma says. "Now the opposite is happening. China's currency is appreciating a lot and Chinese wage inflation is picking up. These economies can benefit from the fact that their currencies are quite competitive and we could see some manufacturing return to these economies, which are also well run now." Last Friday China reported that first quarter growth slowed to an annual rate of 8.1% from 8.9% in the fourth quarter of 2011.

Sharma also likes Sri Lanka, an example of a "frontier market," which he defines as "out of the mainstream emerging markets" -- relatively undiscovered with a lot of upside potential but not correlated to other global markets. Nigeria and Kenya also fit that bill.

He warns investors NOT to buy commodities as a way to get exposure to emerging markets. "Commodities don't help in the long run," Sharma says. "The average real return of commodities in the last 100 to 200 years is negative."