This chapter includes the following articles.
Despite having one of the oldest stock exchanges in Asia and a relatively advanced bourse for its level of economic development, the Philippines lags behind the leading South-east Asian exchanges. However, as domestic liquidity surged and foreign investors gradually returned after a general flight from emerging markets in 2013, the country’s capital markets were riding a wave of optimism in 2014 and early 2015. 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. 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. The expected consolidation of the two major exchanges would be in line with regional and international trends and should make for a stronger and more resilient exchange to compete with regional peers.
This chapter contains interviews with Jose Pardo, Chairman, Philippines Stock Exchange; and Eduardo V Francisco, President, BDO Capital & Investment Corporation, and Co-Chair, Capital Market Development Council.