This 2017 is an opportune year for investors to accumulate Philippine stocks especially whenever the stock barometer falls below its fair valuation of 7,500, leading online stock brokerage COL Financial said.
In a press briefing on Monday, COL head of research April Lee-Tan said it would be difficult to justify premium valuations at present given “unexciting” earnings prospects from corporate Philippines this year. COL expects average corporate earnings to rise by 6.9 percent this year, slower than previous years.
She also cited numerous risks, including higher inflation and interest rates, the weak peso and President Duterte’s policies that may prove “painful” over the short term, including his tax reform program.
But COL continued to have a favorable long-term view on the Philippine economy and the stock market, Tan said. She said the same policies that may be painful in the short-term would be beneficial in the long term, Tan added.
COL said the government needed to implement tax reforms to raise enough funds to meet its goal of increasing disbursements from around 18.2 percent of the gross domestic product (GDP) in 2016 to around 20.2 percent in 2019.
Read more: https://business.inquirer.net/224147/col-year-buy-stocks
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