Gaming, tourism looking to electrify PH stocks this year

The Metrobank Group’s investment banking arm is bullish on tourism and gaming as inflationary headwinds start to clear, although weak market volumes remain a concern.

First Metro Investment Corp. sees improving investor sentiments and easing interest rates propelling the Philippine Stock Exchange Index (PSEi) higher to 7,000 to 7,500 and corporate earnings increasing 11 percent this year, research head Cristina Ulang said on Thursday. During a media briefing to discuss their 2024 outlook, Ulang said gaming stocks and tourism were bright spots that would help fuel economic growth this year.

“I’m excited about gaming and the automation of gaming,” she said, citing the surge of gambling-focused non-index names such as Pacific Online Systems Corp. and DigiPlus Interactive Corp. over the past year. Firms such as billionaire Enrique Razon Jr.’s Bloomberry Resorts Corp. and tycoon Andrew Tan’s Megaworld Corp. are also raising investments in gaming and hotels, which will benefit other sectors serving tourists.

“There’s going to be a lot of activity there that is going to lift the property [segment] in terms of hotel occupancy and air travel and hopefully China [tourism] recovers,” said Ulang, who was also keen on power and companies investing in healthier food alternatives amid shifting consumer preferences. Daniel Camacho, executive vice president and head of investment banking, said total value traded in 2023 fell for a second straight year to P1.2 trillion—even lower than the P1.6 trillion recorded when the global health crisis hit in 2020.