Chinese shares up 0.

27percentinmorningtrade

Agence France-Presse
10:07 am | Friday, November 23rd, 2012
http://business.inquirer.net/94631/chinese-shares-up-0-27-percent-in-morning-trade
SHANGHAI–Chinese shares were up 0.27 percent in early trade Friday but investors were still awaiting
possible government action to boost the domestic economy, dealers said.
The benchmark Shanghai Composite Index rose 5.47 points to 2,021.08.

PH2nd-fastestgrowingbondmarketinEastAsiaasofQ3,saysADB
By Michelle V. Remo
Philippine Daily Inquirer
1:43 am | Friday, November 23rd, 2012
http://business.inquirer.net/94541/ph-2nd-fastest-growing-bond-market-in-east-asia-as-of-q3-says-adb
The bond market in the Philippines was the second-fastest growing among emerging economies in East
Asia as of the third quarter, as the country’s buoyant economy boosted appetite for peso-denominated
instruments.
The Asian Development Bank said in a recent report that outstanding bonds in the local bond market
registered one of the fastest growth rates in the region as of end-September, as economic problems in
Europe and the United States prompted investors to seek higher yields in Asia.
The Philippines was one of the most preferred sites for portfolio investments given a favorable outlook
on its economy, the ADB said.
According to the ADB report, the outstanding amount of local currency-denominated bonds from the
Philippines reached a dollar equivalent of $91 billion as of the end of September, up by 21.8 percent
from that in the same period last year.
Only Singapore posted a faster growth rate of 25.8 percent.
In absolute terms, however, the amount of outstanding bonds in the Philippine market was lower than
that for most countries in the region.
Industry players admit that the country’s capital market remains small compared with its regional
counterparts.
Growth rates and outstanding amounts of bond markets in the region are as follows: Vietnam, 21.1-
percent growth to $21 billion; Malaysia, 20.7-percent growth to $318 billion; South Korea, 16.2-percent
growth to $1.37 trillion; China, 12.5-percent growth to $3.65 trillion; and Hong Kong, 3.7-percent growth
to $176 billion.
Contradicting the trend in the region, the bond market of Indonesia fell by 0.6 percent to $110 billion.
For the entire region, the outstanding amount of bonds thus stood at $6.24 trillion, rising year on year
by 13.9 percent.
“Volatility spillover was directly transmitted to Asian local bond markets during the US and eurozone
crises,” said the ADB as it noted the shift in investor appetite to instruments issued from emerging Asian
markets.
It said the appetite for portfolio instruments from emerging Asian economies was also reflected in the
increase in demand for equities, currencies and money market instruments in the region.
Data on the Philippines also showed that of the P3.8 trillion (or $91 billion) in outstanding bonds by the
end of September, about P3.3 trillion was accounted for by government securities while corporate
bonds accounted for the balance of P500 billion.
The outstanding amount of Philippine government securities represented a year-on-year growth of 14.7
percent, while that of corporate bonds marked an annual growth rate of 26.1 percent, the ADB said.
Although the increase in foreign portfolio investments is a welcome development, monetary officials
said excessive amounts and steep increase could be destabilizing to an economy.
They said these can cause sharp and sudden appreciation of the local currency against the US dollar,
adversely affecting exporters.
This is why the Bangko Sentral ng Pilipinas has implemented several measures against excessive inflows.

Economy’spaceliftsQ4sentiment
Businesses factor in prospects of credit rating upgrade
By Michelle V. Remo

1:47 am | Friday, November 23rd, 2012

http://business.inquirer.net/94545/economys-pace-lifts-q4-sentiment

The all-glass Zuellig Building at the corner of Paseo de Roxas and Makati Avenue, is one of the newest
structures to rise in the Makati CBD. The Philippines’ business confidence index for the fourth quarter
stood at 49.5 percent, better than the 38.7 percent reported in the same period in 2011, and the 42.5
percent seen in the third quarter of 2012. PHOTO BY CHITO VECINA
Business sentiment for the fourth quarter improved due to prospects of an investment rating for the
Philippines in the near term, the economy’s favorable growth performance, and expectation that
household spending will remain strong.
The business confidence index for the fourth quarter stood at 49.5 percent, better than the 38.7 percent
reported in the same period last year, and the 42.5 percent seen in the third quarter of 2012.
It was the second-highest figure on record.
According to results of the latest Business Expectation Survey of the Bangko Sentral ng Pilipinas, the
respondent firms feel better off about the economy this quarter.
“Sentiment of businesses in the country significantly improved, and the reasons cited by firms included
seasonal factors, favorable macroeconomic conditions, expectation of a positive credit-rating action,
and confidence in the [Aquino] administration,” said Ma. Cyd Tuaño-Amador, BSP assistant governor.
Amador said in a briefing Thursday that most companies are confident that they will be able to increase
their profits in the last quarter of the year due to the usual rise in consumer spending during the
holidays.
Rosabel Guerrero of the BSP’s economic statistics department said that most companies now are upbeat
because of the favorable credit rating actions enjoyed by the Philippines recently.
Officials said an investment grade would help the country corner more foreign direct investments,
generate more jobs, improve incomes, and boost consumer spending and corporate profits.