COL Financial sees PSEi reaching 7,500 by yearend on P/E expansion

COL Financial Group, Inc. said the bellwether Philippine Stock Exchange index (PSEi) could reach 7,500 by yearend if the market’s price-to-earnings (P/E) ratio expands to about 12 times from around nine times currently, reflecting stronger investor confidence, BusinessWorld reported.

The brokerage's forecast implies a roughly 16% upside from current levels, assuming earnings growth holds steady. A P/E expansion would indicate that investors are willing to pay a higher premium for earnings, typically a sign of improving market sentiment.

COL Financial's projection aligns with other analysts' expectations of a recovery in the Philippine stock market, buoyed by easing inflation and potential interest rate cuts later in the year. The PSEi has traded in a range this year, weighed by global uncertainties.