PH stocks have been downgraded by J.P. Morgan to 'underweight.'
May 11, 2022
JPM cited an increasing risk of a valuation derating that could be exacerbated by portfolio outflows, the domestic monetary tightening cycle and retail investors shifting to safe havens like bonds or bank deposits.
But it expects “re-opening benefits for the GDP growth trajectory to wane next year and put strong pressure on the government to deliver on capital outlay spending acceleration.”
It said higher commodity prices will weigh on the Philippines’ current account flows and fiscal spending because the country is a net energy importer with oil and raw materials accounting for more than 50 percent of imports and is equivalent to more than 15 percent of gross domestic product.
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