Unicapital Trims 2025 Index Target A Shift in Market Sentiment

Unicapital Trims 2025 Index Target A Shift in Market Sentiment

The Unicapital Group has adjusted its 2025 target for the Philippine Stock Exchange index (PSEi) to 7,800 from 8,000 previously, a move that reflects heightened global uncertainties.

According to Wendy Estacio-Cruz, head of research at Unicapital, the PSEi is still significantly undervalued, trading at a 1% discount to its historical average, presenting opportunities for upside growth.

A Shift in Market Sentiment

Estacio-Cruz noted that US protectionism poses the biggest risk to the equities market. President Donald Trump's recent tariff hikes and promises of further increases may lead to inflationary pressures and affect the Bangko Sentral ng Pilipinas' interest rate adjustments. The Philippines' reliance on US exports (16%) and imports (7%) makes it vulnerable to these changes.

Initial Public Offerings A Key Indicator

Given the current market conditions, Estacio-Cruz expects three to five initial public offerings (IPOs) in 2023, which is lower than the PSEi's target of six. Utilities, telecommunications, and finance listings are likely candidates for IPOs this year, with GCash and Maynilad expressing interest.

A Gallant Move Insights from Unicapital

Unicapital's decision to trim its 2025 index target demonstrates a proactive approach to adapting to changing market conditions. By doing so, the company highlights the importance of flexibility and staying informed in times of uncertainty.

The benchmark PSEi rose 69.06 points, or 1.14%, to 6,113.19 on Thursday. As investors navigate these uncertain times, it's crucial to stay up-to-date with market developments and rely on expert guidance from companies like Unicapital. With their insights, investors can make informed decisions and potentially ride the waves of the market.

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Keywords Unicapital, Philippine Stock Exchange index (PSEi), global uncertainties, US protectionism, initial public offerings (IPOs), gallant move, market sentiment, inflationary pressures, interest rate adjustments.

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Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.