Duterte's Tax Plan May Reverse Manila's Foreign Fund Exodus
- Only Asian emerging market suffering fund outflows this year
- 12-month price-to-earnings ratio vs MSCI EM widest in 6 months
Philippine President Rodrigo Duterte.
Photographer: Noel Celis/AFP via Getty ImagesThis article is for subscribers only.
Philippine equities can lose their tag as the only emerging Asia market to suffer foreign fund outflows this year -- with a helping hand from President Rodrigo Duterte.
Strategists say progress on Duterte’s promised tax reforms is needed to bring back global asset managers, who have offloaded $213 million of Manila-listed equities in 2017 while pouring $6.8 billion into India and $1.4 billion into Malaysia. Investors are also looking for company profit growth to justify an index valuation that’s at the widest premium to emerging market peers in six months. Philippine stocks fell today, halting a three-day rally.