PSEI hits two-year high, BDO strategist believe it can go Higher

The benchmark for the Philippine Stock Exchange Index trudged through a month-long trading range on Wednesday to reach a two-year high. Following the Lunar New Year holiday, the PSEI rallied 1.32% or 97.34 points to 7,44.89 after being on the 7,517.5 level.

“It seems that the Philippine Tiger is roaring,” said BDO Unibank Inc. chief strategist Jonathan Ravelas.

He notes that investors are now focused on domestic factors such as the lowered COVID-19 cases and the upcoming fourth-quarter earnings season. Ravelas claims that the inflation in the latter part of 2021 will likely benefit these narratives.

“The market is more concentrated on developments locally,” he added.

It is reported that the PSEI was lifted mainly from property firms such as Ayala land Inc and SM Prime Holdings and banking giants BDO and BPI.

Furthermore, Ravelas believes that the PSEI has room to improve to possible the 7,700. “The question is, are we able to milk this tiger to go 8,000?” he asks.

Ayala Land Inc. was the most actively traded on Wednesday as it jumped 3.06% to P37 per share.

It was followed by BDO Unibank Inc., up 3.48% to P139.70; SM Prime, up 3.13% to P36.20; Bank of the Philippine Islands, up 2.55% to P100.60; and Solar Philippines Nueva Ecija Corp., up 4.5% to P2.32 per share.

Source: Inquirer