President Aquino sees Philippine stocks rebounding

BATANGAS CITY—The Philippines remains a viable investment destination despite the initial effects of the US credit downgrade on the country’s stock exchange and the peso, President Benigno Aquino III told reporters on Tuesday.

Mr. Aquino said he also expected the Philippine Stock Exchange and the peso to rebound despite the negative effects on the world market of the US and Europe’s debt woes.

“I think we will stand and fall on our own merits,” he said in an interview following the signing of contracts at the Malampaya onshore gas plant of Shell Philippines in Barangay Tabangao.

He said the value of investments in the country would not change with what was transpiring in America. “If it is profitable to do business here, it will remain to be profitable,” he added.

Investors seriously interested in the Philippines, Mr. Aquino said, would continue to see the benefits of pouring capital into the country.

Beyond the dollar

“Investors, who will invest in the long term, will still see the advantages of investing in the country. So the market correction is just a symptom of how the market operates. I think you will see the numbers rebounding,” he said.

The President said the Bangko Sentral ng Pilipinas was reviewing how much of the country’s reserves would remain in dollars.

“I understand, the Bangko Sentral also will be checking our reserves. How much? That’s the question. How much of it will still be dollar-based as opposed to a broader basket of currencies?” Mr. Aquino said.

Asked if he was in favor of diversifying the country’s reserves beyond the dollar, he replied: “Yes. There is an old saying ‘don’t put all your eggs in one basket.’”