MANILA -Fueled by positive economic fundamentals, Philippine stocks could finally break free from a humdrum trading toward the end of 2023 and shatter the elusive 7,300 to 7,500 levels, according to First Metro Investments.
The year-end target implies a roughly 14-percent upside for the Philippine Stock Exchange index (PSEi), which has been moving within a “boring” range that has frustrated traders and investors alike, according to Cristina Ulang, research head at the investment bank.
Ulang said on Wednesday the PSEi was due for a rally as investors price in a peak in interest rate hikes and cooling inflation, in turn bolstering corporate earnings prospects.
First Metro favored companies “with low leverage, demonstrating strong balance sheets, ample liquidity and minimal debt.” Among their picks are: SM Investments, Ty-led GT Capital Holdings, Ayala Corp., Aboitiz Equities Inc. and LT Group Inc.
First Metro president Jose Patricio Dumlao also expressed optimism about the economy’s track, as demonstrated by its 6.4-percent growth during the first quarter of 2023.
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