Goldman Sachs stays bullish on PH equities

Not even the higher tariff that the United States (US) plans to impose on Philippine goods would dampen the local equity market, thanks to strong domestic macroeconomic fundamentals, according to global investment banking giant Goldman Sachs.

- BY BEN ARNOLD DE VERA

In a July 11 report obtained by Manila Bulletin, Goldman Sachs Portfolio Strategy Research said the US Federal Reserve's (Fed) monetary easing cycle is expected to "gather pace" and "reinforce dollar decline."

"Lower US rates and a softer dollar tend to be supportive for regional equities. South Korea, the Philippines, Taiwan, and Hong Kong are the most positively sensitive to these factors," the report said.

As for sectors with the most favorable sensitivity to downward US short-term rates plus a weaker greenback, Goldman Sachs noted that "capital goods, chemicals, transportation, healthcare, and property tend to outperform energy, retail, mining, banks, and utilities."