Consumer, property remain highly recommended

The most preferred stocks in the local market are still consumer and property issues. There is still not much to expect in the overall trend of the market, which is expected to remain mostly sluggish this week on the weight of the global uncertainties.

BPI Capital Corp. chief operating officer Reginaldo Cariaso said the consumer sector is one of the sectors in the Philippine Stock Exchange index (PSEi) that he is optimistic about.

DA Market Securities, Inc., in its recent outlook, has given consumer-related stock Century Pacific Food, Inc. (CNPF) a ‘buy’ recommendation.

“CNPF is scouting for acquisitions in a bid to grow profit by 7 to 8 percent this year…The company is open to looking at other categories outside of its four main business segments: canned and processed fish, private label tuna export, canned and processed meat, and dairy and mixes. It also aims to grow profit and sales by 10 to 12 percent annually in the next two to three years,” the brokerage highlighted.

In terms of other sectors, Cariaso also mentioned that he still likes property but preferably those that cater to the lower income side, adding that “there’s a massive shortage of housing in the Philippines”.

One of the drivers of the property sector is also the business process outsourcing (BPO) industry because it provides a huge demand for office space in the country.

“The BPO sector, directly and indirectly, whatever feeds that sector is going to be good,” Cariaso said.

In the stock market report of DA Market, Ayala Land, Inc. (ALI) and Filinvest Land, Inc. (FLI) were both highlighted. Both property companies cater to the BPO sector with their huge portfolio of office spaces.

For this week, the fate of the local stock market will still depend on the external factors, including the Greece bailout issue.

“We expect further volatility this week, as sentiment ebbs and flows on Greece. While the local economy’s exposure to the crisis is nil, concerns of regional spillover, especially on trade, could curb investors’ risk appetite,” F. Yap Securities, Inc. investment analyst Jason Escartin said.