Printer Friendly

Philstocks: PSEi on its way to 8,500 points.

BROKER Philstocks Financial Inc. said the main index may reach 8,500 points by year-end as it is bullish over the prospects of the local equity market in the second half of the year despite lingering risks.

Philstocks Assistant Vice President for Research Justino Calaycay Jr. said share prices will track the positive earnings of listed firms seen to sustain the modest 9.6 percent year-on-year gains in the first quarter.

'Consumer spending, benefiting from easing inflation and the accommodative bias of the Bangko Sentral ng Pilipinas [BSP] will be the key driver,' Calaycay said.

Stocks are seen to be boosted by last May's 25 basis points reduction in the reverse repurchase rate and the aggregate 200 basis points taken off the reserve requirement ratio.

Calaycay warned that the broad economy will face challenges even as inflation concerns are moved to the side since price pressures continue to taper off.

'Upside risks remain, however, on account of uncertainties in oil prices in light of prevailing geopolitical tensions and a choppy global economy,' he said.

Philstocks has revised most of its forecast numbers with gross domestic product now expected to hover between 5.9 percent and 6.3 percent from its earlier forecast of 6.2 percent to 6.7 percent.

Inflation rate is expected to improve to 2.5 percent to 3 percent from 4.5 percent to 5.5 percent in the previous estimates.

COPYRIGHT 2019 Knowledge Bylanes
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2019 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Mirror (Makati City, Philippines)
Date:Jul 8, 2019
Words:281
Previous Article:DOTr sees feasibility study for a local cable-car system ready by end-December.
Next Article:Meralco customers to benefit from low-cost Solar PHL power.
Topics:

Terms of use | Privacy policy | Copyright © 2022 Farlex, Inc. | Feedback | For webmasters |