According to the, the PSEi could possibly go higher than 9,000 next year.  This is fueled by the reforms being put by the Duterte administration, the reforms they called the “transformational reforms”.  One of the said reforms is the decentralization of the economy, from being focused on Metro Manila to spreading out to Visayas and Mindanao.

In the article, BPI Securities Chief Executive Michaelangelo Oyson, pointed out the 3 main reforms under the Duterte administration and which sectors in the stock market they could impact, these reforms are:

  • the declogging of the Philippines which will ramp-up infrastructure spending.
  • the rise of the next generation Filipino which translates to income redistribution.
  • the rise of next wave cities.

BPI Securities’ top picks are Jollibee Foods Corp., SM Investments Corp., SM Prime Holdings, Ayala Land Inc., Universal Robina Corp., Metro Retail Stores Group Inc., Century Pacific Food Inc. and D&L Industries.

For those looking for direct infrastructure plays, BPI Securities favors Megawide Construction and Metro Pacific Investments Corp.

BPI Securities is also upbeat on the power sector. It is “underweight” (a recommendation to reduce position relative to a benchmark index) on banks and telecommunications.


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