SM Investments Corp. remains upbeat about the conglomerate’s prospects despite the depreciation of the Philippine peso, a top company official said.

SM Investments Vice-Chairperson Teresita Sy-Coson told reporters on Friday “there is not much concern” even as the local currency has tumbled to an 11-year low, while noting that the company relies on domestic demand.

The holding firm of the country’s richest man Henry Sy, Sr. has property, banking, and retail as its core businesses.

“I’m not worried. I think the BSP (Bangko Sentral ng Pilipinas) knows what’s going on and how to handle it. I guess it’s part of the up and down,” Ms. Sy-Coson said.

The peso closed at a fresh 11-year low of P51.49 versus the greenback yesterday, weaker than Thursday’s finish of P51.355-to-the-dollar.

Ms. Sy-Coson said consumption is steadily growing, buoyed by strong consumer confidence.

The Philippine economy relies heavily on dollar-earning industries such as remittances from overseas Filipino workers and the business process outsourcing sector. These income streams drive consumer spending, which accounts for about two-thirds of gross domestic product. A weaker peso means more bang for the buck they earn.

“I don’t think there’s much to be concerned about this economy. It’s steady… the economy is maintaining its growth. So barring anything that is unforeseen within the environment that we have, I guess we’re okay,” Ms. Sy-Coson said.

The Philippine economy grew 6.5% in the second quarter, picking up from the 6.4% in the previous quarter, on the back of increased household and government spending.

Earnings of SM Investments rose 9% to P16.6 billion in the first half of the year on the strength of its core businesses. Without one-time items in 2016, recurring income increased 16% in the same period.

Shares in SM fell P2 or 0.24% to settle at P828 apiece on Friday. – Krista Angela M. Montealegre

RELATED ARTICLESMORE FROM AUTHOR