Stocks to rally on US Fed hopes

The Philippine stock market is seen to try to sustain its strong bounce last week as investors continue to cheer the United States (US) Federal Reserve’s latest policy move and outlook.

- By JAMES A. LOYOLA

“Despite last week’s climb, the local market is still undervalued with a price-to-earnings ratio of 10.8 times as of Friday’s closing. This is below its five-year historical average of 17.3 times and the regional average of 18.2 times. As of the moment, the PSEi still has the lowest PE ratio among peers,” said Philstocks Financial Research Manager Japhet Tantiangco.