MANILA – This year is shaping up to be a "better" one for the stock market, as equities ride on a strengthening peso and easing inflation, an official of the local bourse said Wednesday.

The Philippine Stock Exchange Index was up 0.39 percent to 7,494.78 at noon on the first trading day of the year. The benchmark could reach the 8,400 level by year-end if corporate earnings grow at an average 8 to 10 percent, said PSE board member and fund manager Wilson Sy.

"We are quite hopeful that we will have a better year this year," Sy told ANC. There could be more initial public offerings if the market rebounds this year, he said.

A new brass bull and a new bell were commissioned for the PSE's new trading floor, which began operating in February last year.

More investment products will help encourage the public to invest, said PSE board member Vivian Yuchengco. Real Estate Investment Trusts or REITs could be launched as early as the first quarter, she said.

LOOK: PSE officials (chairman Pardo, board director Vivian Yuchengco, Pres Ramon Monzon and COO Atty Roel Refran) ready to welcome 2019 with good cheer, wine and Torotot! @ANCALERTS pic.twitter.com/UcNIQEmeb6

— Michelle Krystle Ong (@michelle_d_ong) January 2, 2019

Short selling products can also help tap foreign investors, PSE president and CEO Ramon Monzon said.

In short selling, a trader borrows shares whose price he thinks will decline and then sells them in the open market. Once the shares' price falls, he buys them back at the lower price and returns them, making a profit via difference in the stock's old and new price.

Monzon said companies might also "reconsider" their initial public offerings (IPOs) if the market improves this year.

"They say when you’re down there’s only one way to go, to go up, right? This is the year we hope," Monzon said.