ATR Asset Management Inc. said the Philippine Stock Exchange index (PSEi) may close the year at 7,620 level as corporate earnings are poised to post a 30 percent earnings growth, giving the market a 17.1x price to earnings (PE) ratio valuation.
Phillip Hagedorn, ATR chief investment officer, said the continued improvement in the COVID-19 cases that paves the way for a further opening of the economy, resulting to increased spending, aided further by the election season, may further push corporate earnings by 43 percent and bring the PSEi to 8,680 level by next year – a PE ratio of 19.5.
Meanwhile, share prices ended lower yesterday on profit-taking.
The PSEi was down 72.42 points to 7,157.73, a 1 percent drop.
The broader all shares index was down 32.97 points to 4,420.85, a 0.74 percent drop.
Losers edged gainers 121to 85 with 41 stocks unchanged. Trading turnover reached P7.16 billion.
The peso closed at 50.71 to the dollar, up from 50.72 on Wednesday.
The currency opened at 50.77, and hit a high of 50.70 and a low of 50.80. Trading turnover reached $899.73 million.
Michael Ricafort, chief economist at Rizal Commercial and Banking Corp., said the peso firmed up “amid possible resumption of negotiations on the Iran nuclear deal that could lead to some easing of sanctions and resumption of some Iranian oil exports, resulting in lower global oil prices to the lowest in 1-2 weeks.”
Ricafort said there are also expectations that the National Capital Region’s (NCR) alert level could be eased further.
Luis Limlingan, managing director at Regina Capital and Development Corp., said the market “took a breather after rallying as investors braced for the release of more third quarter earnings, the release of GDP, and more global inflationary concerns.”
“Across the region, equities fell from recent highs as the momentum from the strong earnings season started to fade. Selling pressure came from specific sectors, with energy and financial companies posting among the steepest losses in the market,” Limlingan said.
Most-actively traded SM Prime Holdings Inc. was down P1.50 to P33.70. International Container Terminal Services Inc. was up P6 to P189. Ayala Land Inc. was down P0.45 to P35.65. PLDT Inc. was up P24 to P1,694. Converge Information and Communication Technology Solutions Inc. was down P0.10 to P32.85. Globe Telecom Inc. was down P50 to P2,972. Semirara Mining and Power Corp. was down P2.90 to P26.05. DMCI Holdings Inc. was down P0.53 to P8.22. MREIT Inc. was up P0.12 to P18.02. Universal Robina Corp. was down P1.40 to P138.10.
