Published February 12, 2017, 10:01 PM By Madelaine B. Miraflor
As the country’s demand for power rises, the demand for energy stocks will also increase.
Citing the rising demand in power, COL Financial Group, Inc. reiterated the “buy” rating on the shares of Semirara Mining and Power Corp. (SCC), the country’s largest coal producer.
“Fundamentally, we continue to like SCC since we expect it to be a major beneficiary of the country’s rising power demand given its plans to boost power generation capacity from 550 megawatts (MW) in 2012 to 1,200MW in 2020,” COL Group said.
“Furthermore, the outlook for its coal mining business has improved due to its higher coal production level and the recent recovery of regional coal prices. Regulatory concerns on its coal mining business have also diminished given the positive audit results SCC obtained from the Department of Environment and Natural Resources and Department of Energy,” it added.
Other power-related companies that recently got a buy rating from the online brokerage firm are Energy Development Corp., Basic Energy Corp., and Phinma Energy Corp., formerly Trans-Asia Oil and Energy Development Corp.
Online brokerage 2TradeAsia.com also emphasized that a glimpse on progress over the Duterte administration’s tax reform and other fiscal policies could induce optimism in the stock market, similar to how US President Donald Trump teased markets on his “phenomenal” tax plan.
“Sans any significant macro data to be released this week, focus will be on corporate earnings and views how growth will be supported for 2017. The limelight might be industry-specific, especially on trails over mining and gaming – considered as significant multiplier sectors in the economy,” 2TradeAsia said.