Asia stocks fell yesterday was probably why PSEi returned 10 points from its intra-day high of 4156. The area was five weeks in a row of accomplishments, amid speculation Governments throughout the region will need to do more to tame inflation. Asia-Pacific region MSCI index lost 0.6 percent. Recall that the Asian MSCI climbed high two-and-half years last week after Germany indicated that it would take the necessary steps to stem Europe's sovereign debt crisis. MSCI Index Asia-Pacific region rose test percent last year, compared to gains of 12.8% by the S & P 500 and 8.6percent by Stoxx Europe 600 index. The index was important at all hours of the estimated revenue on average close to 14 last, compared to 3.1 times the s & P500 and by 11.2 Stoxx 600. It's no wonder that the fund managers are few hours in the area since many want to protect their profits.
Inflation is probably a sword hanging over most of the markets in Asia. I grew up in the area is a pressure on interest rates to limit the economic performance of some countries of the region. In China, the big brother of the region, inflation expectations that you may click the Central Bank to raise interest rates by 25 basis points in February, after which the increase is added to the second quarter, according to Bloomberg. Hang Seng Index dropped 0.5 percent; Nikkei 225 stock average was flat; Kospi and 0.4 percent.
Regional concerns of foreign funds appear to be its basis is on the market. Elements may take a back seat, so that in spite of the strong developments in southern Philippines, we may see plays with local investors constructiveness. Yesterday, November OFW remittances rose by 10.5% a year previous 1.61 billion. Then a space 9.3 percent in October, and 8.2percent of 17.1 billion in 11 months to November. Remittances currently account for 11 percent of GDP which makes hmtmhim GDP growth of 7 percent in 2010 will be applicable. Full-year data on GDP will be reported on January 31.
Given this scenario, I think we will see the price gains until mid-February when most of the company's earnings report comes in the end. But I was expecting a strong surge. You can accumulate a stock that is relatively well shielded against inflation such as utilities and power. They are allowed to add an add-in the fuel price rise when prices fuel. By the way, the airlines can also add extra fuel price fares.
Inflationary expectations to housing demand may push and property, but see that mortgage rates have not really by importance, perhaps it is this part of the problem. Companies who may or may not be collapsed both consumer companies such as URC, RFM points that may feel brunt rising agricultural commodity prices.
All can say it cannot be too bullish, but you can feel the up trend is still intact. Volatility may rule for foreign funds and may be missing or not use strong days to escape. Is the importance that we stick to stocks with strong fundamentals and therefore we potential weather all storms. Extra, special situations such as CYBR will, learning resource, APC, and so on. Remember that they are special situations when money management is essential, namely the protection of spaces is always a stock when touched.
18 January 2011-posted by Gus Cosio | Financial markets are in Asia be first like this post.
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