Power, infra are ideal stocks

by Madelaine B. Miraflor November 8, 2015

http://www.mb.com.ph/power-infra-are-ideal-stocks/

Power and infrastructure companies will be some of the ideal stocks to invest in the next few trading days.

Over the past few weeks, most market participants are still betting on the bullish outlook on the consumption industry amid the upcoming Christmas and election seasons, thus providing a strong support to consumer and property companies.

Apparently, for some, those are not the only sectors that will benefit from the said drivers.

DA Market Securities, Inc. chief equity strategist Nisha Alicer said in a text message that “energy and infrastructure would be good sectors to participate in [the stock market] considering the season, upcoming elections and macro-fundamentals of the Philippines”.

Alicer said that “at the right price,” some of her picks are First Gen Corp., Energy Development Corp., Aboitiz Power Corp. and Manila Electric Corp.

For infrastructure, she highlighted Ayala Corp., which has a significant portfolio in infrastructure through AC Infrastructure Holdings, Corp.

In general, First Metro Investment Corp. (FMIC) still sees “stronger markets until November” as the delay in Federal Reserve rate hike and weak September US jobs data already provide breathing room to market participants.

“We continue to have a constructive view on Philippine equities as economic growth and earnings outlook are brighter in the next 12-months boosted by election spending. Foreign outflows could run out of steam after the long-awaited Fed rate hike – setting up for a potential election rally,” FMIC said.

“Our key themes remain unchanged. We prefer defensive stocks with strong re-rating catalyst to mitigate portfolio volatility – high dividend yield is a plus. We also like stocks that can leverage on election spending. And lastly, be on the lookout for index glamour names with undemanding valuations,” it added.

Philippine shares continued its downward trend up to the last session of previous trading week. Philippine Stock Exchange index (PSEi) particularly succumbed to correction, completing a three-day losing momentum, shedding 4.25 points, or 0.06 percent to 7,118.20.