PSEi To Hit 7,700 By Year-End

Despite the market's current weakness, BDO Securities Corp. said it expects the Philippine Stock Exchange index (PSEi) to surge to 7,700 by the end of the year, based on an average earnings growth estimate of 15 percent.

The 30-stock PSEi has generally exhibited weakness in the month of August, which historically occurs 60% of the time. I Photo: Andrew G. Contreras, The Financial District

BDO Unibank Inc.'s stock brokerage is urging investors to take advantage of the current weakness in the stock market to load up on cheap stocks and not to be swayed by superstitions, such as the belief that it is not a good time to make investments during the Chinese "Ghost Month," an annual observance believed to bring bad luck, which is often associated with cautious behaviors and superstitions that supposedly affect financial markets.

However, John Michael Raz, BDO Securities Assistant Vice President and Head of Online Sales, insisted: "Making investment decisions based on sound research, diversification, and long-term goals is crucial, regardless of the time of the year."

He also noted that the 30-stock PSEi has generally exhibited weakness in the month of August, which historically occurs 60% of the time. To date, support has been established at the 6,350 level, with the market currently trading in the 6,350 to 6,750 range, he said, adding, "There's really no rule against buying in the month of August."

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