ONLINE brokerage firm COL Financial Group, Inc. expects the stock market to benefit from tax reforms being pushed by the Duterte administration.
COL Financial, which has an 8,700 outlook for this year, sees the benchmark index hitting 9,300 in 2018.
“I think come 2018, say once the tax reform is implemented and then the demand is stronger than expected, then they will give us a more bullish guidance same on the expansion plans,” Tan told reporters following the company’s COL Premium Mid-Year Market Outlook held in Pasig City over the weekend.
“[F]or 2018, it’s still 8 percent so it’s a little bit slow if you think about it but again as we’ve said earlier, I think the major difference is the fundamentals have caught up, so coming from 8,700 this year, plus 8 percent,” COL Financial research head April Tan told reporters following a briefing on the brokerage’s midyear market outlook.
In a presentation, COL Financial said that passage of the proposed Tax Reform for Acceleration and Inclusion (TRAIN) Act, expected to generate over P1 trillion in revenues from 2018 to 2022 for the government, would foster long-term economic growth.
Industries expected to continue benefiting, Tan said, are banks, financials and gaming.
“Same sectors. Consumers but more consumer retail than the others … due to intense competition,” she added.