EastWest Bank expects corporate earnings to post an average growth ranging from 11 to 13 percent this year due to easing inflation.

EastWest Bank chief investment officer Bede Gomez said the likely robust earnings growth could push up the Philippine Stock Exchange Composite Index (PSEi) to 7,700 to 8,000 as investors seek diversified sources of income.

He said logistics and transport, manufacturing and mining sectors will continue to see the highest revenues this year, as consumers and firms continue to rely on coal despite the growing presence of electric vehicles and clean energy facilities worldwide.

“Coal is still the cheapest source of power, and coal will not be gone in the next five and even 10 years,” Gomez said Thursday night during the EastWest Bank annual event.

Bede added US President Donald Trump aims to flood the markets with all kinds of fuel, signaling declining prices of traditional energy.

He added shares remain the cheapest in Southeast Asia which could encourage investors to diversify, especially that the International Monetary Fund (IMF) sees the local economy to grow by 6.1 percent this year or higher than Malaysia’s 4.7 percent and Thailand’s 2.9 percent.

“Malaysia and Thailand are expensive but the worst,” Bede said.

Previously, Bede forecasted a 7,250 PSEi level for the year 2024 amid higher interest and inflation rates.

BSP benchmark seen falling

He agreed with the IMF that the benchmark for interest rates from the Bangko Sentral ng Pilipinas will fall to 5 percent this year from 5.75 percent due to lower inflation.

The IMF expects Philippine average inflation to settle at 3 percent.

Bede said Trump’s remarks on high tariffs on US imports and anti-immigrant policies will create minimal inflationary effect.

“In his inauguration, Trump stressed unfair practices, not more about tariffs. And Trump is probably more curious about immigration laws on its neighbor Mexico,” he shared.