THE Philippine Stock Exchange index (PSEi) could hit record highs beyond 9,000 over the next 12 months given the country’s fundamentals, a brokerage firm said on Thursday.
“We’ve been positive on the market since the start of first quarter … [and with regard to]the one year view, we think that the market is capable of reaching probably 9,000 to about 9,300,” CLSA Philippines, Inc. research head Alfred Dy said in a conference in Makati City.
“The key is where the Philippines is really … the macro environment is very solid … and there’s a lot of growth potential,” he added.
A further boost could come from the implementation of the government’s tax reform plans and developments in the “Build Build Build” infrastructure program.
“In the short-term, in the next 12 months, we probably have to show more results on the infrastructure part.
There’s been a lot of talk, clients are asking me what’s happening and I think there’s been a lot of news flow but in terms of actual projects, I was actually telling the clients that by 2018 and 2019 there will be bigger news for the projects,” he said.
“In the next two to three months, [we expect the implementation of the]package one of the comprehensive tax reform program. This is very important because package one which aims to raise about $2 1/2- to about $3 billion per annum would be the seed funding for the government … [for]these infrastructure projects,” he said.
“So it is very, very important to get that tax reform program running in order to fund some very important infrastructure projects,” he added.