Investors also embraced EPHE due to low correlations between Philippine and Chinese stocks and the country’s current account surplus, a favorable trait at a time when some major emerging markets are home to widening account deficits.
The young population in the Philippines helps to reinforce growth, as most are English-speaking. Additionally, a strong U.S. dollar/weak peso could actually benefit the Philippines because of the massive foreign remittances to the country from the U.S. [Credit Upgrades Boost Philippines ETF]
With EPHE’s chart unattractive at best, the fund needs fundamentals to kick in, a Pacquiao win or both.
Philippine Stocks After Pacquiao Wins
Chart Courtesy: Bloomberg