PHILIPPINE stocks gained sharply in the first half of 2016, and analysts noted there was still room for further growth, despite external risks and a local market already considered “expensive.”
Ample global liquidity could continue to drive up the benchmark Philippine Stock Exchange Index (PSEi), which has gained about 12 percent in the first semester of the year to end at almost 7,800.
Analysts noted that potential gains would come despite high domestic valuations, global worries over Britain’s exit from the European Union, and the so-called “ghost month” that discourages some Chinese investors from making big bets.
“The liquidity in the market is substantial, and we’re still seeing strong foreign capital inflows,” Jose Mari Lacson, BPI Securities deputy head of research, said in an interview.
BUSINESS
BUSINESS
BUSINESS
PNB Securities president Manuel Antonio Lisbona, citing the company’s research, noted the PSEi was seen to remain bullish early on in the third quarter, which was within the first 100 days of the Duterte administration.
PNB Securities said there were indications the 6.9-percent economic growth seen in the first quarter would be sustained in the second quarter of 2016. Lisbona said that outlook—viewed through market capitalization to gross national income and subsequently, market valuations—would help “fuel the PSEi rally further.”
