BDO Securities sees PSEi at 8,700 in 2017 | mb.com.ph | Philippine News
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BDO Securities sees PSEi at 8,700 in 2017

The Philippine Stock Exchange index (PSEi) will manage to close at the around the 7,800 level this year and surge 12 percent to around 8,700 in 2017 on the back of strong growth in corporate profits.

“Because we think earnings growth next year will be around 10 to 11 percent. We think market multiple will hold at roughly the same level,” said Banco de Oro (BDO) Securities Corporation Research Head Dante Tinga Jr. during the launch of BDO Nomura Securities, Inc.

He said price to earnings ratio is seen to settle at around 18 to 18.5 times earnings per share amids the backdrop of low interest rates.

“We’re looking at around 8 to 9 percent earnings growth this year. Last year’s growth averaged 5 percent, so there is an uptrend in terms of earnings. That’s one of the reason why we’re positive on equities,” said Tinga.

Tinga noted that, “there  is some concern on investor sentiments, particularly on the political noise. But as the fundamentals are intact, there is really very little reason not to be bullish.”

BDO Unibank, Inc. (BDO) and Nomura Holdings, Inc. (Nomura) announced that their joint venture, BDO Nomura Securities, has officially commenced operations offering online trading services for stocks listed on the PSE.

BDO Nomura provides investors in-depth market research, quick execution time and competitive rates. Additionally, the platform offers ease of use through simple and paperless online application and fund transfers through the customer’s BDO Deposit Accounts.

As a bonus, BDO Rewards Points will be earned for all transactions made. These Rewards Points can be redeemed for products available in SM-affiliated stores.