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FEARLESS FORECAST: PSEi to breach 8,000 in 2015
The benchmark PSEi is expected to breach the 8,000 level, thanks to a slew of positive developments and favorable economic fundamentals, officials of First Metro Investment Corp. (FMIC) said Wednesday.
The investment banking arm of the Metrobank Group forecasts the Philippine Stock Exchange index to end the year between 8,300 and 8,500, FMIC VP Bede Lovell Gomez told reporters in a briefing in Makati City.
Driving the market higher are a confluence of developments that include the ASEAN economic integration which leads to more regional mergers and acquisitions, low oil prices, government spending and low inflation, he said.
The services, property, financials, industrial and holding firms are the sectors that will lead the market, Gomez said.
However, risks to the forecast include the looming power crisis, possible policy rate changed in major economies, sluggish public-private partnership projects, global economic slowdown, natural disasters and the negative impact of lower oil prices to some overseas economies, he noted.
"We might see some volatile movements in 2015, but it might be a little subtle. We still see good uptrend in the equities market," Gomez said.
Despite the weight of natural disasters, disappointment over the gross domestic product (GDP) and the anticipation of higher rates in the US, the PSEi gained 22.8 percent last year.
In the same briefing, FMIC SVP Justino Juan Ocampo said the Philippine stock market was the third best performing exchange, next to Shanghai and India.
2014 was a "lost window" in terms of capital raising for companies, as the volume decline by 13 percent to P135 billion, he said.
With expectations of breaching 8,000, Ocampo said the equities market will be supportive of new issues.
"Banks will continue to be an active participant in this space. Looking back at 2014, we also see small caps leading the growth," he noted.
"In terms of sector, we're looking at financial... consumer/retail, property and technology," he said. – VS, GMA News
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