CEBU, Philippines - BPI Securities Corporation reported, in a briefing yesterday, that some potential industries are bound to experience positive growth next year while other sectors are facing headwinds.
BPI Securities, the stock brokerage arm of Bank of the Philippine Islands, said consumer, gaming and infrastructure are the industries that are believed to have great value and are seen to have uptrend growth in the local stock market in the next 12 months.
Norman Jay Go, head of the firm’s Cebu Equity Sales, told reporters that the consumer sector has always been the major growth driver of the Philippine economy which is 70 percent driven by consumption.
“We have been looking forward for growth of these industries,” he said, referring to consumer, gaming and infrastructure. “The story of the consumer sector is the story of the Philippine economy.”
The increase in disposable income has supported the sector’s growth as more people spend money in retail shops, he explained.
The growing business process outsourcing operations has also generated income for the people.
He noted Robinsons Retail Holdings, Inc. and D&L Industries, Inc. are the consumer-related stocks that are in the best position on the back of their growing retail businesses.
For the gaming industry, Bloomberry Resorts Corporation which operates Solaire Resort & Casino is seen to have tremendous growth due to the increasing gaming revenues.
Solaire is the first licensee of the state-run Philippine Amusement and Gaming Corporation which also said the nation’s gaming industry has a long way to go in terms of revenue potential.
Furthermore, the public-private partnership is expected to support the continued growth of the infrastructure sector which has generated foreign investments and has significantly contributed to economic growth.
Go said DMCI Holdings, Inc. would have an interesting growth story next year because of its elevated performance in the construction industry.
In addition, previous growth sectors include mining, utilities and telecommunications which are projected which are projected to take a negative path as they are facing headwinds.
Moreover, the benchmark stock index is projected to take advantage of some global factors such as the improving US economy and economic stimulus of the Bank of Japan.
Achieving a 7,800-mark Philippine Stock Exchange index uptrend in the next 12 months could be a challenge. — Carlo S. Lorenciana (FREEMAN)