PSEi may surpass 7,000 level, says analyst

Posted at 07/14/2014 12:51 PM
 

MANILA, Philippines – The Philippine Stock Exchange index (PSEi) may again surpass the 7,000 level within the year, according to a veteran stock exchange analyst.

The main index hit a 13-month high last week at 7,016.71, before closing at 6,999.10.

As of Monday morning, trading was at the 6,800 level.

But Edward Go of Investors Securities said the 7,000-mark may be breached again, and that the volatility is “nothing to be worried about.”

“It’s fluctuating within the realm of a standard deviation of a normal curve,” he told ANC on Monday.

“It may even surpass 7,000… We have to be able to take this normal fluctuation, we cannot expect it to go up, up, up and away. It is going to fluctuate just like a statistical normal curve,” Go added.

Go noted that if the Bangko Sentral ng Pilipinas keeps interest rates low, it will continue to boost local share prices.

“If the interest is kept low, investment in bond and others will shift to the stock market to a certain extent,” he said.

The PSEi closed at 6,999.10 last week, the highest level since May 31, 2013 when the PSEi posted intra-day and closing levels of 7,028.50 and 7,021.95 points, respectively.

"The market’s rise to the 7,000 is a validation of the solid macro-economic fundamentals of the country and the confidence of investors in the Philippine economy. We are hopeful that this momentum will carry on until the end of the year," PSE president and chief executive Hans Sicat earlier said.