Philippine Property Stocks Strong Last Week
| Last week saw a big surge on Philippine Property Stocks. Of course, most of the stocks did rise due to a recent rally of the worldwide stock market, but the ones that outperformed the others here in the Philippines were mostly property stocks. |
| Why is this so? Analysts have attributed this to the recent cut in interest rates and further cuts in the near future, meaning loan interests will go down and more people will be applying for housing loans to buy houses and condominiums. (Read more about how interest rates affect the property sector on my previous post here at Bangko Sentral hints at Further Interest Cuts). |
| Ayala Land (Stock Symbol: ALI), Megaworld (MEG), and Filinvest Land Inc. (FLI) were among the Property Issues that gained significantly. From the start of the week on May 4 to the end on May 8, Ayala Land went from to 6.2 to 7.4 for a 15% jump, Filinvest from .64 to .74 for a 17% increase, and Megaworld from .71 to .95 for a whopping 35% increase (Megaworld has a stock rights option which accounted for its strength). |
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As I have said numerous times in this blog already, the Philippine Property market continues to be resilient (see previous posts at http://www.realestatephilippinesblog.com/category/real-estate-philippines-news/). We Filipinos did not lose as much money as the rest of the world, and our growing population still need houses to live and invest in. However, stock analysts also say that this will be a temporary rally. Let’s just wait and see. Meanwhile, based on my research, I’m sticking to my belief that Philippine Property will continue to be strong in these times |
Yey! stocks are rallying since last week. sana tuluy-tuloy na to para makabawi na ako.