Reopening the economy will allow PSEi to reach 7,800.”

The Philippine Benchmark Stock Exchange Index (PSEi) could reach 7,800 points this year as most of its 30 members will post profits beyond pre-pandemic levels.

Maybank Securities said in its report that PSEi will grow by 15% this year, led by the conglomerate, the real estate sector and banking.

“We expect 2023 to be a continuation of 2022 in a good way,” the broker said. “Amid diminishing inflation expectations, a more stable outlook for the Philippine peso against the dollar, a stable regulatory environment and downside risks driven by flow in the market, we expect the improved fundamentals of the PSEi to be the main catalyst for this year.”

“As such, our forecast for market earnings growth of 15 percent year-on-year appears achievable as the economy has fully reopened and is likely to remain open, while adjustments to corporate and individual tax rates should boost institutional and domestic spending,” he leads. The economic activity “.

The European stock market index closed on Thursday, up 124.19 points, to close at 6833.53 points.

The broker said the conglomerate sector’s profits could grow by 20 percent this year, and the real estate sector could grow by 24 percent year-on-year on the back of normal operations and construction activity.

Meanwhile, expectations of banks’ profit growth of 22 percent on net interest margin hinge on average income-producing assets after an interest rate increase of 300 basis points in 2022 and assuming loan growth of 8 to 12 percent.

The only exception, Al Waseet said, is the industrial and utilities sector, where it expects profits to decline by 2.5 percent year on year due to falling coal prices.

Its earnings forecast puts oil at $100 a barrel, inflation at 4.6 percent and the peso-dollar exchange rate at 54 pesos to $1.

“The exit of PSEi in 2022 as a result of the higher inflationary environment and the weakness of the Philippine peso has opened a buying window for several quality stocks with strong economic moats and multi-year earnings growth,” said the broker.

“We prefer stocks with significant exposure to improve mobility and local consumption.”

Maybank expects the country’s economy as measured by GDP to grow at a slower rate of 5.5 percent this year.

“Aside from the continued improvement in employment rates and continued remittances of workers abroad, which we expect to grow by 3 percent year-on-year, the reduction in personal income tax rates should boost domestic consumption by 6.4 percent year-on-year.”

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