Shares open higher, seen hitting 8,700 by year-end


Posted at Aug 07 2017 09:54 AM | Updated as of Aug 07 2017 12:14 PM

MANILA - Strong corporate earnings and easing concerns overseas will help push the Philippine Stock Exchange Index to 8,700 points by the end of the year, an analyst said Monday.

The main index was up 0.41 percent to 7,965.44 in early trading. The peso opened at P50.30 to the dollar from P50.16 on Friday.

Second quarter earnings reports from banks showed fast loan growth and higher margins, said COL Financial vice president and head of research April Lee Tan.

Telecommunications companies have also signalled that they were reducing subsidies and cutting costs, Tan told ANC's Market Edge with Cathy Yang.

While interest rates abroad are going up, the moves will be meant to normalize, instead of tighten policy, helping direct fund flows to the Philippines, she said.

Headwinds from overseas have also lessened with the global economy performing better than expected, she said.