Capital Markets

As domestic liquidity surged and foreign investors gradually returned after a general flight from emerging markets in 2013, Philippine capital markets were riding a wave of optimism in 2014 and early 2015. The Philippine Stock Exchange’s (PSE) blue-chip index, the PSEI, hit a fresh all-time high in January 2015 and was continuing to rise in February, finally working past the “taper tantrum” that knocked back all major emerging market indices in 2013. The Philippine market’s strong performance in a weak year for emerging markets bodes well for the capital markets sector and was an important show of confidence by investors in the country’s broader economic prospects. In addition, the development of a local corporate bond market is also a promising sign and will reduce the economy’s dependence on banks to finance investment. This chapter contains an interview with Rabboni Francis B Arjonillo, President, First Metro Investment Corporation.