MANILA, Philippines – The brokerage arm of Ayala-led Bank of the Philippine Islands (BPI) is seeing the Philippine Stock Exchange Index (PSEi) hitting 9,000 in 2020, fueled by banks, properties, and consumer stocks.
"We are currently trading at around 16 times forward earnings, near the market's 10- year average. Amidst strong earnings and macro growth, the backdrop for 2020 appears more attractive than the present year and we think the PSEi can trade around 18 times, translating to an index target of 9,000 for 2020," said BPI Securities president Haj Narvaez.
The Philippines' macroeconomic outlook for 2020 and continued rise in consumption amid steady inflation are also seen to deliver growth to the local bourse.
While Narvaez remains bullish, he noted that volatility is still expected in the market due to the worsening trade war between the US and China.
The PSEi traded flat at 7,707 on Tuesday, November 26, down by 0.8%. Its year-to-date return is at 3.2%, while its price-to-earnings ratio is 16.71.
Market analysts at the start of 2019 initially projected the index would end the year at around 8,500, but it has so far struggled to even cling on to the 8,000 level. – Rappler.com