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.
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