BPI Securities on Thursday affirms that the economy remains fundamentally sound despite rising geopolitical tensions in the Middle East. Mark Race, its president and CEO, said that while the country faces risks from elevated oil prices due to its status as a major importer, stable inflation and improving domestic supply conditions, particularly in rice, are helping to cushion the impact.
Year-on-year rice prices have dropped by over 11 percent, aiding the moderation of food inflation, a key driver of overall price stability. Race emphasized that inflation trends in early Q2 show encouraging signs, particularly in food, utilities, and transport.
On the equities side, Race said the PSEi remains technically supported, trading above 6,300, with BPI Securities maintaining a year-end target of over 7,000, backed by projected core earnings growth of 8 percent.
Despite net foreign outflows of P35–36 billion year-to-date, Race said the market continues to offer a compelling opportunity for global investors, citing the country’s consumption-driven economy and strong macroeconomic fundamentals.
BPI Securities expects that, barring a significant geopolitical escalation, domestic stability and favorable valuations will continue to underpin investor confidence through H2 2025.
