TIME TO TAKE POLITICS OUT OF MINDSET, FOCUS ON ECONOMY INSTEAD
MANILA, JUNE 14, 2007 (MALAYAR) BY IRMA ISIP - Businessman Jose Ma. A. Concepcion III yesterday said the current bullrun in the stock market would take five years to trickle down to the masses only if there would be at least three to five years of sustained economic growth.
Concepcion, who is president and chief executive officer of RFM Corp. and presidential consultant for entrepreneurship development, said the performance of the stock market is a reflection of the performance of economy, if it is meeting the growth and fiscal targets. These, he said, are among the assumptions that the investors make when they put their money in the stock market.
Concepcion noted that the trickle down effect of listed companies, which raise capital through the bourse, takes months or even a year. Capital raised through the trading of stocks is used by listed firms to invest and expand their business, which would create the jobs and the incomes for the masses.
"Just because the stock index rose by 100 points... the gains cannot be passed on instantly. And not everybody is into stocks as 80 percent of Filipinos are not benefiting from the stock market," Concepcion said.
In contrast, the remaining 20 percent which belong to the A and B market have so far instantly enriched themselves in the last eight months as the stock exchange increased its value by three to four times.
Concepcion, who earlier predicted that the peso would strengthen to 46 to the dollar, sees the peso appreciating further to 40 to 42 by the end of the year, given the strong overseas remittances and other dollar inflows.
He said this augurs well for controlling the price increases in oil prices and in taming inflation. "Even the interest rates are one of the lowest in Asia.
But Concepcion called on Filipinos to take politics out of their mindset and focus on the economy instead, likening the last three years of the Arroyo administration to the last two minutes in basketball where you either "lose it or win it."
"It is now high time to focus on the economy now that the election fever is over. We should give the country a fair shot. The optimism level is much higher now and the economy is picking up," Concepcion said.
Concepcion, the prime mover of the Go Negosyo movement, said Filipinos should explore entrepreneurship as the way to create wealth.
The Go Negosyo advocacy would conduct beginning June 26 a provincial caravan as part of its cause to open business opportunities in the countryside. The Caravan kicks off in Cbeu on June 26 to 27 and to Bacolod, Baguio, Cagayan de Oro, San Fernando, Pampanga and Las Pinasto create nationwide entrepreneurial.
Chief News Editor: Sol Jose Vanzi
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