Biggest Philippine manager keeps faith on pricey property stocks
Philippine real-estate stocks will extend a market-beating rally, the country’s biggest money manager is betting, unfazed by the most expensive valuation in four years.
The Philippine Stock Exchange Property Index has climbed 24 per cent this year as investors became more sanguine about President Rodrigo Duterte’s pivot to China and his US counterpart’s insular approach to trade, which could hurt outsourcing companies. The measure now commands the highest premium since 2013 over the stock benchmark, which is up 17 per cent.
Driving demand for houses and office space is an accelerating economy, rising remittances from Filipinos abroad and government incentives to draw offshore businesses. Complimenting that is lawmakers’ plan to lower some taxes and boost spending on roads and bridges, a move cheered by investors.