First Metro sees bulls in H2 2019
MANILA, Philippines – Metrobank's investment arm and economists of the University of Asia and the Pacific expect the local bourse to continue increasing in value in the 2nd half of 2019, as inflation continues to slow down and government spending improves.
First Metro Investment Corporation (FMIC) sees an upward trend for the Philippine Stock Exchange index (PSEi) in the latter half of the year once it breaches the resistance level of 8,200.
Other than slower inflation and faster government spending, FMIC said the central bank's cuts in policy rates and reserve requirement ratio, the United States Federal Reserve monetary policy easing, and improved corporate earnings will boost the benchmark index.
The PSEi broke into bull market territory last July 15, closing at 8,365.
The report also noted that foreign investors returned to the local market in early July. While they were away, local investors filled in the slack. These two movements enabled the PSEi to approach 8,400.
The projected gross domestic product (GDP) growth is at 6% to 7% for 2019, despite GDP falling to a 4-year low of 5.6% in the 1st quarter of the year. – Rappler.com