RP equities market oversold - Sun Life

The local financial unit of Canadian insurance giant Sun Life is urging investors to take stock of the situation before fleeing the equities markets.

“What we have is panic. The market is being ruled by fear rather than logic,” said Ben Panares, head of the mutual funds of Sun Life Asset Management Co., a fund manager of Sun Life Financial Philippines.

He said the Philippine equities market is largely oversold against strong first semester reports of listed companies. “The fundamentals favor a buying mode. If it were a different time, it should be looking at challenging the previous record highs.”

The benchmark Philippine Stock Exchange index (PSEi) is already in the 2,100-level psychological resistance mark, with most stock prices at “bargain levels.”

“There is no such thing as a right or a wrong in business, it is just a matter of timing,” the Sun Life executive said.

Sun Life Financial reported a third quarter increase of six percent in sales. It likewise opened three new sales offices, expanded its alternative channels, and launched two new products.

Sun Life Philippines president and chief executive officer Henry Herrera said despite the global financial crisis, the company sustained the public’s trust and confidence.

“Sun Life Financial Philippines continues to implement new initiatives that support the company’s drive toward market leadership,” Herrera said, adding they are closely monitoring the local market situation.

He added that Sun Life will likewise look out for investment opportunities, implying interest in Philippine American Life and General Insurance Co. (Philamlife), which is up for sale as its mother unit the American International Group (AIG) has been forced to sell several of its subsidiaries to pay for its $85-billion debt from the Federal Reserves Bank of New York.