Election bodes well for Philippine bourse

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PSE1The Philippine Stock Exchange (PSE) will remain on a steady positive trajectory no matter the results of midterm elections scheduled for Monday, May 13, a PSE analyst has observed.

“I don’t think there is much uncertainty,” Nisha Alicer, senior stock analyst at the PSE told Inside Investor.

“The fact that [President Benigno Aquino III] is in power bodes well for the markets, as he stands for good governance, shoring up investor confidence along with evident economic growth and prospects. What could shake up the market is the 2016 general election.”

Moreover, while elections often exhume feelings of prudence, the Philippines’ leading opposition party stands by the political order de jour, making Monday less critical for the markets than normal.

The United National Alliance, the opposition coalition, has vowed support for Aquino’s administration, and shows overwhelming similarities in political agendas, hold for grievances concerning the speed of reforms, the passing of the Reproductive Health law and personal grudges.

“Positive bias”

The PSE is continuing to emit robust signals that it is firmly held in a 10-year bull cycle, which analysts believe began in 2007.

The bourse hit yet another all-time high last week at 7,284, and could continue moving upwards thanks to S&P’s recent investment upgrade, which Alicer projects could continue pulling up the market to reach 10,000 by the end of its cycle.

“The market is currently in consolidation with positive bias thanks to the S&P upgrade. While others are concerned with what are perceived to be lofty valuations in the market, I continue to think the market is a buy on dip,” Alicer said.

“So any volatility in the downside on Monday for me is a buy. We continue to recommend to invest in companies that have a roadmap of expansion/growth in the next two to three years and beyond,” she continued.

 

 

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Reading Time: 2 minutes

The Philippine Stock Exchange (PSE) will remain on a steady positive trajectory no matter the results of midterm elections scheduled for Monday, May 13, a PSE analyst has observed.

Reading Time: 2 minutes

PSE1The Philippine Stock Exchange (PSE) will remain on a steady positive trajectory no matter the results of midterm elections scheduled for Monday, May 13, a PSE analyst has observed.

“I don’t think there is much uncertainty,” Nisha Alicer, senior stock analyst at the PSE told Inside Investor.

“The fact that [President Benigno Aquino III] is in power bodes well for the markets, as he stands for good governance, shoring up investor confidence along with evident economic growth and prospects. What could shake up the market is the 2016 general election.”

Moreover, while elections often exhume feelings of prudence, the Philippines’ leading opposition party stands by the political order de jour, making Monday less critical for the markets than normal.

The United National Alliance, the opposition coalition, has vowed support for Aquino’s administration, and shows overwhelming similarities in political agendas, hold for grievances concerning the speed of reforms, the passing of the Reproductive Health law and personal grudges.

“Positive bias”

The PSE is continuing to emit robust signals that it is firmly held in a 10-year bull cycle, which analysts believe began in 2007.

The bourse hit yet another all-time high last week at 7,284, and could continue moving upwards thanks to S&P’s recent investment upgrade, which Alicer projects could continue pulling up the market to reach 10,000 by the end of its cycle.

“The market is currently in consolidation with positive bias thanks to the S&P upgrade. While others are concerned with what are perceived to be lofty valuations in the market, I continue to think the market is a buy on dip,” Alicer said.

“So any volatility in the downside on Monday for me is a buy. We continue to recommend to invest in companies that have a roadmap of expansion/growth in the next two to three years and beyond,” she continued.

 

 

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