PSE’s Monzon: ‘Positives outweigh the negatives’ as market eyes 2025 gains

Correction: The initial version of this article mistakenly stated Abacus Securities’ PSEi target as 8,500. 

We would like to clarify that while Abacus' fair value target is 8,500, its more realistic target is between 7,700-7,800. Why are there two values? The fair value represents its view on the fundamental valuation of the PSEi, while the actual target considers other factors, such as market sentiments and economic conditions.

The article and accompanying chart have been revised to reflect the correct price target of Abacus.



Ramon Monzon 
PSE president, CEO 

Low valuations at the Philippine Stock Exchange (PSE) present a rare opportunity for investors, offering long-term potential despite looming risks from ongoing geopolitical tensions and uncertainties over a second Trump presidency, PSE president Ramon Monzon said.

Compelling valuations at 10.4 times projected earnings, which Monzon said was a significant discount over the recent five-year average, mean investors can scoop up high-quality stocks at reasonable prices.

He added that strong macroeconomic conditions will continue to support economic growth and double-digit earnings gains for most listed firms.

“You have headwinds because of Trump 2.0, you have geopolitical conditions, and you have the strong US dollar because of Trump,” he said in a recent interview.

“But being an eternal optimist, I think the positives outweigh the negatives,” Monzon said. “I’m kinda bullish for 2025.”

Selling pressure on concerns over a second Trump presidency has weighed on the Philippine benchmark index, or PSEi, which slumped 3.5 percent since the start of the year, closing at 6,299.67 on Tuesday.

Investment houses project higher stock prices    

Data from 10 stock brokerage firms align with the PSE president’s optimism, showing projected market gains this year ranging between 16 percent and 27 percent for the PSEi. 

Moreover, five of the stock brokers also project the PSEi breaching the 8,000 level by yearend. 

See the targets below. 

Stock brokerage firms back PSE president Ramon Monzon’s optimistic outlook, forecasting gains between 16 percent and 27 percent for the benchmark index in 2025. 

New listings in 2025 

Monzon is also keeping his target of six potential initial public offerings this year.

Those expected to list include GCash, Hann Resorts, and Top Line Business Development, which was supposed to list in the fourth quarter of 2024. 

Monzon said the first major listing will likely be Maynilad Water Services, which could raise P12 billion-P13 billion selling about 20 percent.

“Maynilad is just deciding whether it’s going to be before or after elections,” he said.

Monzon also encouraged firms to take the leap, saying the PSE has their back all the way.

“Look at OGP [OceanaGold Philippines], look at CREC [Citicore Renewable Energy]. They braved the IPO market last year, and they’re still above IPO price until now,” he said.

About the author
Miguel R. Camus
Miguel R. Camus

Miguel R. Camus has been a reporter covering various domestic business topics since 2009.

Featured News
Explore the latest news from InsiderPH
Thursday, 20 February 2025
Insight to the one percent
© 2024 InsiderPH, All Rights Reserved.