PSE index expected to rebound on improving economic data 

First Metro Securities Brokerage Corp. on Tuesday projected that the benchmark Philippine Stock Exchange index (PSEi) will reach 7,600 points by the end of the year, according to a report by BusinessMirror.

“We believe the market is positioned for a turnaround,” Reuben Mark Angeles, FVP and equity research division head of the brokerage firm, said.

“With inflation easing, economic data improving, and monetary policy becoming more accommodative, the business cycle is shifting from a slowdown to early recovery.”

Several factors are expected to drive market momentum, including a potential reduction in stock transaction taxes that could improve market liquidity, an upgraded credit outlook supporting capital flows and increased domestic consumption ahead of the midterm elections, the broker said.

Despite global uncertainties, the broker believes that the Philippines remains resilient due to its domestically driven economy, ample reserves and strong geopolitical ties with the United States. While Trump’s policies introduce some risks, many of these concerns have already been priced into valuations.

Ser Percival Peña-Reyes, director of the Ateneo Center for Economic Research and Development, said that the country’s economy as measured by gross domestic product could grow 6 percent this year.

He cautioned that sustained growth should come from “meaningful investments” rather than short-term election-driven spending.

“We want spending to have a lasting impact, creating jobs and strengthening industries rather than fueling temporary consumption.”

He added that inflation is expected to remain within the Bangko Sentral ng Pilipinas’ (BSP) target range of 2 percent to 4 percent, which will help maintain price stability and support economic activity.

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.

Share prices climbed last week, snapping the main index’s four-week decline, with the

reconstitution of the PSEi and the increasing confidence in the country’s economic prospects.

The PSE index gained 292.40 points to close at 6,154.99 points. It was up for three consecutive days, gaining 3 percent last Tuesday and Wednesday.