InterAksyon.com
The online news portal of TV5
MANILA, Philippines – State-run Government Service Insurance System (GSIS) wants to hike its stock market exposure to as much as 15 percent this year, its chief executive said on Wednesday.
“I’m quite optimistic that this year will at least be better than last for the market. That’s why we will continue to opportunistically deploy more money in the equity markets and hopefully get our weightings up to 14 to 15 percent from the current 11 percent that we have,” said Roberto Vergara, GSIS president and general manager.
In 2011, the pension fund for government workers invested P70 billion in the local market.
Vergara said the country’s growth prospects look promising given the government’s plan to boost infrastructure spending to offset a weak external market.
GSIS however is biding its time before adding to its investments, he said.
“It’s difficult this January because everybody just hit the buy button. Foreigners have suddenly discovered the allure of the Philippine market. We haven't had the chance to buy in yet. So we'll wait for an opportunity to do it,” the GSIS chief said.
“We’re looking at [investing] another 2 to 3 percent but only if the markets are accommodating. Right now, the markets are just running away so it’s very difficult to keep on buying up because there’s no volume,” he said.
“It [the stock market] will always consolidate and correct. We’ll have an opportunity to buy then,” he added.
Trading volume at the Philippine Stock Exchange came to P7.47 billion on Wednesday. The composite index added 33.20 points or 0.71 percent to close at 4,715.64, while the broader all-shares index gained 13.76 points or 0.43 percent to 3,189.23.
