American investment bank JP Morgan did not waste time in raining on presumptive president Bongbong Marcos’ parade which the Western media has universally branded a dictator’s son.
JP Morgan downgraded the Philippines to “underweight” (with its real estate sector to “neutral”) just hours after the Philippines wrapped up its elections and the early returns showed the pro-China Marcos winning by a landslide.
JP Morgan dropped the Philippines to the bottom of the six biggest economies in ASEAN after Indonesia, Vietnam, Singapore, Thailand and Malaysia.
“We recommend selling tin a possible post-election hope rally…Philippines equities face myriad challenges including twin deficits, higher inflation, slower government spending in the quarters after the election (transition pain), high public debt, risk of a valuation derating and potential earnings growth disappointment,” said JP Morgan.
“We expect re-opening benefits for the GDP (Gross Domestic Product) growth trajectory to wane next year and put strong pressure on the government to delver on capital outlay spending acceleration,” it added.