The upside potential for the bellwether PSEi to hit 7,600 this year remains strong as certain economic conditions remain favorable, First Metro Securities Brokerage Corp. said.
“We believe the market is positioned for a turnaround,” Reuben Mark Angeles, equity research head at First Metro, said in a press release on Tuesday.
“With inflation easing, economic data improving, and monetary policy becoming more accommodative, the business cycle is shifting from a slowdown to early recovery,” he added.
The PSEi lost 49.37 points or 0.82 percent to close at 5,987.75, breaching the important support level at 6,000 and registering its fourth successive trading day of declines.
What could help drive the market’s upward momentum are the potential reduction in stock transaction taxes to improve market liquidity, the stockbroker said.
It also cited an upgraded credit outlook that will support capital flows, and higher domestic consumption ahead of the midterm elections in May could lift share prices higher.
“Structural growth opportunities are also emerging, particularly with the Luzon Economic Corridor, a trilateral initiative between the US, Japan, and the Philippines that positions Clark, Pampanga as a future economic hub,” Angeles said.
Despite the global uncertainties, First MetroSec believes the Philippines remains resilient due to an economy hinend to domestic consumption, as well as ample foreign reserves and a strong geopolitical tie with the US.
While US President Donald Trump’s policies introduced some risks, many of these concerns have already been priced into the market.
Estella Dhel Villamiel, First Metro Institutional Research head, said that among the key investment themes for this are the early-cycle recovery, midterm election plays, greater AI adoption, and companies positioned to benefit from AI-driven efficiency gains.
The economy could grow by 6 percent this year, supported by improving fundamentals, said
Dr. Ser Percival Peña-Reyes, director of the Ateneo Center for Economic Research and Development, said in the same statement inflation is expected to remain within the Bangko Sentral ng Pilipinas’ 2 to 4 percent target range, which should help maintain price stability and support economic activity.
