{"id":327564,"date":"2024-04-17T22:19:00","date_gmt":"2024-04-17T14:19:00","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=327564"},"modified":"2024-09-01T22:32:33","modified_gmt":"2024-09-01T14:32:33","slug":"psei-given-up-all-gains-this-year","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/psei-given-up-all-gains-this-year\/","title":{"rendered":"Commentary: PSEi has given up all gains this year"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">Back to end-2023 level<\/h3>\n\n\n\n<p>The PSEi has given up all gains for the year as the index fell back to its end-2023 level of 6,450. In USD terms, the market is actually down 3.5% already given the weaker local currency.<\/p>\n\n\n\n<p>At 6,450, the market trades at 11.2x P\/E current and 9.9x P\/E forward. This way below the market\u2019s historical valuation \u2013 5-year mean P\/E of 12.4x and 10-year mean P\/E of 12.8x.<\/p>\n\n\n\n<p>All sectors are now trading lower year-to-date (YTD), with the exception of Banking stocks which managed to hold on to most of its gains and sustain its outperformance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Peso depreciation also not good news<\/h3>\n\n\n\n<p>Foreign investors have been consistent net sellers lately trimming down total net inflows to just US$100 million YTD. Coincidentally, the PHP\/USD rate fell to the key P57.00 level for the first time since Nov 2022. <\/p>\n\n\n\n<p>Apart from having a positive correlation with local equities, a weaker dollar poses additional inflation risk for the country given that we are a net importer economy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Negative for Consumer and Conglomerate stocks<\/h3>\n\n\n\n<p>As mentioned in our other <a href=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/commentary-peso-depreciation-bad-news\/\">Commentary<\/a> report, a weaker PHP is generally negative for Consumer and Conglomerates but neutral-to-positive for Properties and Power.<\/p>\n\n\n\n<p>Our current index target of 8,300 now offers much higher potential upside of almost 29%.<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:16px\"><em><em>This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about <a href=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/our-partner-brokers\/\">our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here\u2019s a commentary on an important issue or event affecting the stock market<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1124,11],"tags":[],"class_list":["post-327564","post","type-post","status-publish","format-standard","hentry","category-commentaries-special-reports","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/327564","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=327564"}],"version-history":[{"count":4,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/327564\/revisions"}],"predecessor-version":[{"id":327578,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/327564\/revisions\/327578"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=327564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=327564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=327564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}