The Philippine economy grew 7.8 per cent in the first quarter from a revised 6.8 per cent the previous quarter, beating analysts’ expectations of an increase of just 6 per cent, as sharply higher investments and government spending offset the impact of faltering demand from China, America and Europe that slowed economies elsewhere in the region.
Minority shareholders of the Philippines’ San Miguel Corp’s property unit are probably sore after the company, which is to be delisted in May, offered to redeem outstanding shares at just 134 pesos each– barely a fifth of the last traded price of 700 pesos per share. While delisting was expected, the low redemption price was not.
Benigno Aquino, president of the Philippines, shared his father’s words of warning earlier this week in a speech marking the 20th anniversary of the Manila exchange: “Unless you’re a big boy, don’t play in the stock market. You will only get burned.”
Clearly lots of investors in the country have chosen to ignore Aquino Sr’s advice: on Tuesday the Philippines equity index closed at a record high – its 7th in a row, and its 34th this year. But, after a romping run, some analysts are getting edgy.