Infra, conglomerates are top picks

The market had a great start — with three straight days of winning streak even prompting experts to believe even more that the benchmark index could soar somewhere in the level of 11,000 — and despite the euphoria, an analyst believes being "picky" in stocks would still be the way to go.

First Metro Investment Corp. (FMIC) Head of Research Christina Ulang, the only analyst out of four asked by the Business Bulletin that forecasted of a positive start for the local stock market, advised investors to be very selective if they want to benefit from the market's surge.

"What we need to do [to take advantage of this optimism in the market]? We'd like to believe of a very high selectivity in terms of strategy. You've got to be choosy, you've got to be picky," Ulang said.

"The next thing is, you have to watch out for the economy and corporate earnings," she added.

Her preferred sectors for 2018 would be infrastructure and conglomerates.

For infrastructure, Ulang picked Metro Pacific Investments Corp., Megawide Construction Corp., and Eagle Cement Corp., while SM Investments Corp., GT Capital Holdings, Inc., and Ayala Corp. were rated 'buy' for the conglomerates sector.

Ulang also said that in choosing the right stocks, one should look at the company's earnings growth, valuation, dividend yield, and solid balance sheet.

"These are the characteristics of the companies that we have chosen," she further said.

Ulang also mentioned some ideal property stocks such as Ayala Land, Inc., Robinsons Land Corp., and Megaworld Corp.

"Property stocks will continue to grow with pre-sales as a big indicator and the strong demand," she noted.

For banks, she said that some are very well-positioned, with their lending portfolio poised to grow moving forward. She handpicked Metropolitan Bank and Trust Co., BDO Unibank, Inc., and EastWest Banking Corp.

On the first trading day of the year, investors gobbled on local shares, sending the Philippine stock market to a fresh record alongside its regional peers.

Before retreating, PSEi on Wednesday jumped by 165.71 points, or 1.94 percent to close at 8,724.13.