Analysts see stocks trading sideways in first week of 2025 - Manila Standard
Philippine stocks are expected to trade sideways in the first trading week of 2025 as investors return from a long holiday.
Trading will resume at the Philippine Stock Exchange Thursday after a three-day break.
Luna Securities said investors should remain invested in the market amid lingering concerns both here are abroad.
"Despite concerns about both international and local factors - such as macroeconomics, geopolitical situations and the new U.S. president - the numbers and valuations of PSEi present a positive outlook," Luna Securities said.
It said the Philippine Stock Exchange index could range, from a low of 7,030 (+8 percent), to a high of 8,080 (+24 percent) and a potential peak of 9,399 (+45 percent) under the most optimistic scenario.
The PSEi ended at 6,528.79 points in 2024, up by 78.75 points or 1.2 percent from its close of 6,450.04 in 2023. This marked the first time the PSEi closed higher year-on-year since 2019.
Daily average value turnover reached P6.10 billion, or nearly flat from P6.09 billion registered year-on-year.
Domestic market capitalization at yearend rose 11.2 percent to P14.57 trillion from P13.10 trillion in 2023.
Foreign investors were net sellers in 2024, with net outflows reaching P23.18 billion versus the P53.65 billion net foreign selling in the previous year.
"Internal and external economic and geopolitical headwinds weighed on the market for most of the year, which in turn prompted IPO listing applicants to defer their public offering. One of the investment considerations at this time is the direction of economic policies of the new US administration. An outcome favorable to the Philippines may help spur foreign buying and create the market condition listing applicants are waiting for," said PSE president and chief executive Ramon Monzon.
The total capital raised from the equities market amounted to P82.37 billion, down from P140.95 billion raised in the previous year.
Three companies conducted their maiden listing namely, OceanaGold (Philippines), Inc., Citicore Renewable Energy Corp. and NexGen Energy Corp. in 2024
Monzon said the local bourse plans to enhance stock market liquidity in 2025, with the launch of Global Philippine Depositary Receipts and the acquisition of Philippine Dealing System Holdings Corp. (PDSHC).
"This acquisition aims to create operational synergies by establishing a unified marketplace for fixed income and equity products, and a single platform for capital raising, among others. We will also remain active in our IPO campaign to get more companies listed in the stock market," Monzon said.