The Philippine equities market is expected to hit the 7,000-level this year on optimism over the country’s stable macroeconomic fundamentals and robust earnings growth.

In an annual San Miguel Corporation-Economic Journalists Association of the Philippines seminar held here, chief strategist at Banco de Oro Unibank Jonathan Ravelas said fundamentals remain stable, with the country’s economy expected to grow 6.75 percent in 2014, slightly lower than last year’s 7.2 percent.

Ravelas said he also sees a low inflation rate of 3.5 percent, with the peso trading within the P43.50 per dollar by year-end.

He is optimistic earnings growing at least eight to 10 percent this year, reflecting the 50 basis points increase in key policy interest rates.

Ravelas said earnings can rise at a high of 15 to 20 percent.

The benchmark Philippine Stock Exchange index already breached the 6,600-mark on April 10, its highest level for this year. The index, however, retreated the following day on profit-taking.*PNA

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