Philippine retail stock broker COL Financial Inc. said on Monday the country’s main stock index may still reach 7,500 points by the end of the year — a level higher than before the Middle East conflict started earlier this year.
April Lynn Tan, the firm’s chief equity strategist, noted that at 7,500 points, market valuations remain affordable at a 12 times price-to-earnings ratio, based on historical averages and projected earnings per share. She explained the target aligns with typical market benchmarks and is not overly ambitious from a fundamental standpoint.
Optimism also comes from the planned initial public offering of Mynt Inc., the parent company of digital wallet GCash. While oil prices have risen again, Tan noted they are now far lower than their peak. Though still 44 percent higher than pre-war levels, this is well below the 160 percent increase seen at one point, reducing some pressure on the market.
COL chief technical analyst Juanis Barredo said the PSEi is currently near the 6,600 level recorded when the conflict began. The index closed Monday at 6,415.72 points. Barredo believes reaching 7,500 will be harder, giving it a 20 to 25 percent chance, but said the outcome remains possible.
