MANILA, Philippines – A veteran stock market analyst believes the Philippine Stock Exchange index (PSEi) will perform better in 2014 after it ended the year with the worst performance since 2008.
He said the rehabilitation efforts in the areas devastated by typhoon “Yolanda” in November will have a positive effect on the market in the new year.
“Being an optimist, I think there will still be an uptick in the market especially if we will have a good move in the reconstruction of the devastated areas. They may not be so big but they can contribute psychologically to the outcome and outlook of the market,” Inquirer columnist Den Somera told ANC on Monday.
The PSEi closed at 5,889.83, up only 1.3 percent for the year, after reaching an all-time high of 7,400 in May. But Somera predicts that the market will bounce back, and reach the 6,500 to 7,000 level in 2014.
PSE considers 2013 a “banner year,” as it was able to introduce new products and services such as exchange traded funds (ETF), Sharia-compliant securities, SGX-PSE MSCI Philippine Index Futures, Tradex and EDGE.
According to Somera, the introduction of ETFs will attract more investors into the country.
“It will attract more investors and attract more money in the capital market. I think the timing is good because we are back to square one, you cannot go any much lower unless there is a breakdown in the economy and peace and order in the Philippines,” he said.
source: www.abs-cbnnews.com
