Property companies, conglomerates are top picks

Property companies and conglomerates are now ideal at the Philippine Stock Exchange (PSE) after performing positively in the past weeks. This, while the local stock market is waiting for cues here and abroad after the rather disappointing first quarter gross domestic product (GDP) results.

First Metro Investment Corporation (FMIC) President Rabboni Francis B. Arjonillo said the Philippine Stock Exchange index (PSEi) gained momentum in April, seeing the significant improvement of several stocks in the property sector as well as holding firms.

"Property sector posted the largest gains of 6.4 percent, with Megaworld Corp. leading the growth by 20.1 percent," FMIC said in its latest market research, also highlighting Robinsons Land Corp. and Ayala Land, Inc. as two of the top performers in the sector in the past few weeks.

"Holdings sector came in second with a 4.9 percent jump, led by Alliance Global Group, Inc. (+16.7 percent) and DMCI Holdings (+12.8 percent)," the investment banking firm added.

Moving forward, Arjonillo said FMIC expects a selling trend to take shape, especially this month, and would flat out until August as the "market undergoes healthy consolidation."

Online brokerage 2TradeAsia.Com said that after first quarter GDP growth fell below expectations, investors will take cues from other developments such as the government's infrastructure push.

"The market is still upbeat on recovery prospects for the remainder this year as projects are rolled-out and budgets are deployed," 2TradeAsia.com said.

"Overall, investors will keep a tab on joint venture deals that would arise from the administration’s ‘Build, Build, Build’ agenda, including financing concessions and other arrangements," it added.

"Meanwhile, repositioning in portfolio holdings is seen, with the expected debut of Eagle Cement (EAGLE) and Cebu Landmasters (CLI) this month, as some players heed for the two IPO prospects. Seize on dips to position," 2TradeAsia.com said.