by Madelaine B. Miraflor November 8,
2015
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.
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