Gaming and tourism sector could boost PSEi

In a positive assessment of the Philippine stock market, First Metro Investment, the investment banking division of the Metrobank Group, is optimistic about the prospects of gaming and tourism. They foresee favorable trends as inflationary pressures ease, although they express some reservations about weak market volumes.

During a briefing on their 2024 outlook, Cristina Ulang, the head of research at First Metro, mentioned that the combination of improving investor sentiments and decreasing interest rates could potentially drive the Philippine Stock Exchange Index (PSEi) to levels ranging from 7,000 to 7,500. She expects corporate earnings to grow by 11% this year.

Ulang specifically pointed out gaming stocks and tourism as promising sectors that would contribute to economic growth. She expressed enthusiasm about the advancements in gaming automation, citing the impressive performance of non-index names like Pacific Online Systems and DigiPlus Interactive over the past year.

Additionally, Ulang highlighted prominent companies such as Bloomberry Resorts and Megaworld, which are investing in gaming and hotels, as contributors to the positive outlook. These companies anticipate increased activity that would have a positive impact on the property segment, particularly in terms of hotel occupancy and air travel. There are hopes for a recovery in Chinese tourism as well.

Growth in the gaming sector is beneficial to the gaming industry as continuing its growth can and give better services and inspire confidence in both the land based casinos and online gaming community. As 2024 comes in, we are hoping that a more open economy and increased tourism will bring in more players as well.

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