By Alexander Villafania
MAKATI CITY, METRO MANILA – Belief that the new administration under President Benigno “Noynoy” Aquino III will make true with its promise of reform is a major driver for increased investor confidence in the Philippines, according to a report published by financial institution ING.
The ING Investor Dashboard showed that 69 percent of local investors interviewed in the survey believe that Aquino’s performance in his first days as the new leader has had a positive effect in the country’s economic outlook.
The report also indicated some of the expectations of domestic investors for the next three months. Eighty-three percent of those surveyed forecast the overall economic situation to improve, while improvements in personal and household financial situations will remain constant.
Seventy-one percent of investors say they want President Aquino to focus on minimizing graft and corruption while 57 percent say economic reforms must be top priority. Another 55 percent expressed the need to have the new administration prioritize business growth and foreign investments.
Respondents also cited several other priorities, such as government transparency (48 percent), regulation of critical utilities such as fuel and water (41 percent), and poverty alleviation (36 percent).
Expectations on return on investments dipped by 1 point this quarter from the previous one, though it remains to be high at 77 percent, indicating strong confidence in the overall economy.
Paul Joseph Garcia, chief investment officer of ING Investment Management Philippines, said local and foreign investors have been pumping more money into Philippine stocks, reflecting the optimism.
“Average daily turnover in September 2010 almost doubled to P6.053 billion, in contrast to the P3.906 billion average daily turnover from January to August 2010,” Garcia said.
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