Infrastructure, power stocks, are still hot buys
Listed companies that are into infrastructure and power are still the ideal stocks to buy, moving forward, or atleast until the end of the year as the administration continues to build up the country's portfolio on these sectors.
First Metro Investment Corp. (FMIC) Head of Research Christina Ulang said that this week, the support of 8,000 is going to be tested so there might be profit-taking.
However, she said there could still be continued buying because the foreign funds are still coming here. As for her stock picks, she said she still prefers the stocks in the infrastructure and power sectors.
"Infrastructure is yet to happen. The best is yet to come. If there's going to be a dip this December or August (for the stock market), the funds are just going to be repositioning for next year," Ulang said in an interview.
According to her, the ideal stocks to buy are Metro Pacific Investments Corp., Manila Water Corp., Aboitiz Power Corp., Manila Electric Co., Semirara Mining and Power Corp.
There will be no trading today (Monday, August 21) in observance of Ninoy Aquino Day.
Last week, the local equities market ended on a decline after testing the 8,100 level.
"Although it's a seasonally weak period, August, usually you would see a breakdown of the support but now it's different, you're moving higher and what used to be a consolidation in the trading range of 7,800 to 8,000 is now trading higher," Ulang said.
"So what's causing that? Earnings are meeting expectations and some results were outperforming the expectations. There's very little disappointment or none at all. And this thing about ghost month happening August 22 until September, it's not much of a threat now. The December Fed Hike may not at all happen. And this thing about the peso weakness, it's expected to benefit our exports, which is one of the drivers of the economy," she added. Week on week, the PSEI went up by 88 points, or 1.11 percent to close at 8,016.73.
"Abatement of political tensions between North Korea and the US was highlighted during the week... NoKor opted to defer the release of its military plan, pending statements from the US," online brokerage 2TradeAsia.com said.