Stronger equities market seen this year

February 16, 2025 | 12:00am

MANILA, Philippines — First Metro Securities Corp. expects a  stronger equities market this year, driven by improving economic conditions, policy support and structural growth drivers.

“We believe the market is positioned for a turnaround,” First Metro Securities first vice president and equity research division head Reuben Mark Angeles said.

“With inflation easing, economic data improving and monetary policy becoming more accommodative, the business cycle is shifting from a slowdown to early recovery,” he said.

For this year, First Metro Securities expects the Philippine Stock Exchange Index to reach 7,600, with a broader target range of 6,600 to 8,600.

Factors seen driving market momentum are the potential reduction in stock transaction taxes that can improve market liquidity, an upgraded credit outlook supporting capital flows and increased domestic consumption ahead of the midterm elections.

First Metro Securities said that structural growth opportunities are also emerging, particularly with the Luzon Economic Corridor, a trilateral initiative between the United States, Japan and the Philippines that positions Clark, Pampanga as a future economic hub.

Due to its domestically driven economy, ample reserves and strong geopolitical ties with the US, the Philippines remains resilient despite global uncertainties, First Metro Securities said.

It also said that while President Donald Trump’s policies introduce some risks, many of these concerns have already been priced into valuations.

Despite challenging market conditions in 2024, First Metro Securities continues to urge investors to take advantage of emerging opportunities this year.

Estella Dhel Villamiel, institutional research head of First Metro Securities, said that key investment themes for 2025 include early-cycle recovery, midterm election plays, greater artificial intelligence adoption and companies positioned to benefit from AI-driven efficiency gains.