Growth outlook, infrastructure focus to boost PHL stock market

January 12, 2015 7:59 am 

By Leslie D. Venzon

MANILA, Jan. 11 (PNA) — The growth story of the Philippine economy and infrastructure focus can enable the local stock market weather the possible capital outflows on prospect of Fed rate increases, and peak at 8,000 to 8,200 towards early 2016.

Nisha Alicer, chief equity analyst at DA Market Securities Inc., said the risks of United States rate hike expected mid-year can lead to outflows and stronger dollar.

Alicer said the Philippine peso, however, has remained resilient against other currencies buoyed by remittances.

“Despite possible volatility in the event of capital outflow, we believe the Philippine growth story remains intact – dividend demographic, growing OFW/BPO (overseas Filipino workers/business process outsourcing) remittances,” she said.

Over the long term, Alicer said the economic growth is further supported by the infrastructure focus by government and improving roll-out.

“Election spending to provide further boost as well. The papal visit this January to enhance tourism/consumer sectors,” the analyst said, as she also looks towards an 11 to 13-percent gain by end-year

Further, Alicer also noted the positive growth across companies amid short to long-term growth plans to take advantage of such structural growth.

“We also see more regional influence considering ASEAN 2015, AFTA (Asean Free Trade Area) and as local companies expand outside the country,” she further said. (PNA)

CTB/LDV

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