'Cheap zone' in stocks a buying opportunity: analyst | ABS-CBN
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'Cheap zone' in stocks a buying opportunity: analyst
'Cheap zone' in stocks a buying opportunity: analyst
ABS-CBN News
Published Apr 24, 2018 12:53 PM PHT
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Updated Apr 24, 2018 01:22 PM PHT
MANILA - The stock market's recent decline to its lowest level in a year provides buying opportunity for long-term investors, an analyst said Tuesday.
MANILA - The stock market's recent decline to its lowest level in a year provides buying opportunity for long-term investors, an analyst said Tuesday.
The Philippine Stock Exchange Index is in the "cheap zone" with the price-earnings or PE ratio at 16, compared to the average of 18 times and the high of 20 times, said First Metro Securities consultant Alexander Gilles.
The Philippine Stock Exchange Index is in the "cheap zone" with the price-earnings or PE ratio at 16, compared to the average of 18 times and the high of 20 times, said First Metro Securities consultant Alexander Gilles.
The PE ratio refers to the share price divided by earnings per share. It is the amount that an investor has to pay for every currency unit such as peso or dollar.
The PE ratio refers to the share price divided by earnings per share. It is the amount that an investor has to pay for every currency unit such as peso or dollar.
The PSEi was down 0.86 percent to 7.653.44 at noon on Tuesday.
The PSEi was down 0.86 percent to 7.653.44 at noon on Tuesday.
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"It can weaken a few more points. We are now in the cheap zone," Gilles told ANC's Market Edge with Cathy Yang.
"It can weaken a few more points. We are now in the cheap zone," Gilles told ANC's Market Edge with Cathy Yang.
"I think this is the inexpensive zone where long-term investors should be buying plenty," he said.
"I think this is the inexpensive zone where long-term investors should be buying plenty," he said.
Treasury yields of up to 3 percent in the US could drive some investors out of emerging markets, he said.
Treasury yields of up to 3 percent in the US could drive some investors out of emerging markets, he said.
"It's like a big magnet from the US, attracting dollars," he said,
"It's like a big magnet from the US, attracting dollars," he said,
"If they want growth, they go to Southeast Asia. If they want safety, they go to the US," he said.
"If they want growth, they go to Southeast Asia. If they want safety, they go to the US," he said.
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