Sun Life Asset Management Company, Inc. (SLAMCI) has recently released their market oulook for the 2nd half of the year in the Philippines. It was presented by Sun Life CIO Mike Enriquez.
Based on the data that they had gathered, the GDP figures for the 1st quarter of the year is a disappointment but it recorded a negative growth of -4.2% Year-on-Year (YoY). This was due to lack of consumer demand. But they are seeing growths this 2nd quarter up to the last quarter of the year. They are expecting a GDP growth of about 3.9-7.1% for 2021.
They are estimating that the inflation for this year will be at 4%.
They are expecting that the expected range for USD-PHP exchange rate this year is around 48-50 pesos. They also see a current account deficit might drive a weaker peso this year especially as they expect the economy open by the 2nd half of the year.
They see that the PSEi is still within its downtrend channel. However, there seems to be some buying interest closer to 6,000 support. Their target for PSEi at the end of 2021 is 7,648, which translates to 24% upside compared to 6,165 PSEi level as of May 24. They expect the recovery to be led by Telco, Property, Consumer and Transport sectors.