Philstocks Financial Inc. research head Japhet Tantiango said the equities market remained at attractive levels, even after the benchmark index’s strong rebound last week. Its price-to-earnings ratio is still below its 2018-2022 average of 19.8x.
Tantiango said the continued bargain hunting would depend on upcoming data, including September inflation and the Bangko Sentral ng Pilipinas’ policy outlook. “An inflation print significantly higher than August’s 5.3 percent, particularly one which exceeds the upper end of BSP’s 5.3 to 6.1 percent forecast may cause the market to decline due to the negative implications on our economic performance and the resulting possibility of BSP tightening further,” Tantiangco said.
Investors also await the release of manufacturing and labor market data to get clues on the health of the domestic economy.“Chart-wise, the market trading range is seen from 6,150 to 6,400 with a possible further testing of the resistance. If the market is able to get past 6,400, its next resistance is seen at 6,600,” Tantiangco said.
The Philippine Stock Exchange index surged 2.91 percent last week to close at 6,321.24 on bargain-hunting and quarter-end window dressing activities.