“In our view, the PSEi may continue trading above the 7,000 level as the market digests the larger-than-expected interest rate cut by the US Fed and as we expect some capital inflows to Southeast Asian markets, such as the Philippines,” Wendy B. Estacio-Cruz, research head of Unicapital Securities, said in a Sept. 20 report.
Top beneficiaries were sectors such as property, real estate investment trusts, power, and conglomerates.
Unicapital reiterated top picks SM Prime Holdings, (30 percent potential upside), AREIT (22 percent), and ACEN (32 percent).
It also expects the peso to trade against the US dollar within the P55-55.60 range by year-end as the Bangko Sentral ng Pilipinas (BSP) eases interest rates further or adjusts tools like reserve requirements to stimulate growth.
On Friday, the BSP announced a 250 basis point cut to reserve requirement ratios for universal and commercial banks, as well as non-bank financial institutions with quasi-banking functions, which takes effect next month.
