Philippine banks, property to gain in 2010

By Myra P. Saefong, MarketWatch

TOKYO (MarketWatch) -- The Philippine stock market might not keep pace in 2010 with its year-to-date climb of more than 60%, but it will likely continue to post gains, with the banking, consumer and property sectors leading the advance.

"The investment environment is now more favorable than 1-1/2 years ago," Rommel Rodrigo, research head at DBP Daiwa Securities in Manila, said in a recent research note.

As a result, the benchmark PSE Composite Index may rise "modestly" from its current levels to 3,240 in the fiscal year 2010, he said, citing expected improvement in earnings forecasts.

"With corporate earnings recovering on upward revisions to sales-growth projections and cost cutting, upward earnings revisions may gain momentum," he said.

In late morning trading Tuesday in Manila, the PSE Composite was 0.4% higher at 3,044.88, moving at its strongest levels since Dec. 17. A year ago, it closed at 1,872.85.

Among specific market sectors, DBP Daiwa Securities has raised its view on banking, consumer-related stocks and property to overweight from neutral this year. Read more...