Another banner year for local stock index
After another banner year, the local stock index is seen to sustain its momentum through 2013.
“Having achieved so much in 2012, some might see the next year as a challenge, whether this year’s feat can be repeated. However, the economic backdrop remains resilient and 2013 is expected to be another strong year,” said Maria Arlysa Narciso, an analyst at AB Capital Securities.
For the whole of 2012, the main-share Philippine Stock Exchange index has gained by 33 percent to close at 5,812.73. The index broke the record 38 times throughout the year.
“With the influx of foreign funds into the market, we can be assured of the confidence and optimism in both our economy and the market. The government has also set the foundation of a strong economy. We expect this year’s accomplishments to be the stepping stones toward becoming an economic powerhouse in Southeast Asia come 2013,” Narciso said.
AB Capital Securities is projecting at least a 10-percent PSEi growth in 2013. It’s yearend target level for the PSEi is 6,390, and it is optimistic on leisure, consumer, and utilities issues.
Meanwhile, Narcisco said, trading this week would hinge slightly on developments in the United States, particularly the budget deal.
The US House of Representatives was set to reconvene Sunday in hopes of finding a solution to steer the country away from another recession.
“We believe the Obama administration will not allow the US to plunge into a recession and will do whatever it can to push the House to find a solution,” Narcisco said. Doris C. Dumlao