PSEi to hit 7,400 - analyst
MANILA, Philippines - The Philippine Stock Exchange main index (PSEi) will breach the 7,400 mark this 2013.
This was the forecast that online brokerage COL Financial Philippines announced in a briefing on Wednesday, February 20, citing ample liquidity and a strong long-term outlook.
“The Philippines has a positive long term outlook and boasts of relatively attractive fundamentals globally," said April Lynn Tan, COL Financial's research head.
"Interest rates will also most likely remain low for the rest of the year, sustaining the prevailing liquidity driven rally,” she added.
Tan warned that there may also be market volatility due to the fragile state of many developed economies and the migration of foreign investors to cheaper markets.
“We advise investors to stay invested in the stock market to take advantage of its favorable long-term outlook,” Tan said.
“However it would be wise to set aside some cash. Volatility could create opportunities to buy stocks cheaply.”
COL Financial predicted strong performances from banks, consumer stocks and infrastructure-related stocks.
Among the firm's stock picks are companies such as Metrobank, BDO Unibank, D&L Industries, Puregold Price Club, Metro Pacific Investments Corp. and Manila Electric Company.
Below are some of the presentation materials of COL Financial during the briefing: