From a recovery phase, we expect the Philippine market to enter the bull market phase in 2011 wherein valuations increase given strong evidence of growth. Economic growth is already gaining traction as evidenced by the 7.8% rise in 1H10 GDP, and should remain strong, driven by favorable economic conditions and improving investor confidence brought about by the new administration. Ample liquidity, strong upside risk for corporate earnings, and the PSEI’s attractive valuation should also fuel the market’s ascent. We expect the PSEi to end 2011 at 5,300, up 33% from its current level.
— Citiseconline — Enter the Bull Market
