Philippine stocks seen getting a lift if trade war worsens

MANILA, Philippines — The Philippine equity market could be a bright spot for investors should trade friction between the US and China further escalate, according to a global bank, which nevertheless remained “neutral” on the nation’s stocks on expectations margins would stay “under pressure.”

“US-China trade tensions are currently one of the bigger risks to global growth. We believe ASEAN equities should be relatively insulated from this because most of the revenues for listed companies are generated domestically,” HSBC Global Research said in its “ASEAN Equities Outlook” report.

“In the event of a further escalation in risks associated with trade, investors could rotate into the more domestic markets... In ASEAN, these are Indonesia and the Philippines,” it added.

Read more: The Philippine Star