Top stocks for the week Bargain hunting recommended

After stocks fell last week, stock analysts now recommend investors to selectively pick up bargains and start accumulating growth stocks.

“Despite the volatile price action since February, the bourse is within its major ascending channel. One should note that major downdrafts are largely driven by major recession, which is contrary to what’s shaping the global landscape today,” said 2TradeAsia.com.

It advised investors to “never lose sight of the Philippines' core growth prospects. Seize weakness to position gradually.”

Abacus Securities Corporation advised its clients to subscribe to Metrobank’s stock rights offering as it is relatively cheap and an opportunity to buy it at almost book value.

However, it warned that Metrobank’s parent company GT Capital bears watching as its subsidiary Toyota Motors Philippines may have seen sales drop 15 to 20 percent due to the new tax law.

Abacus also recommended a buy for San Miguel Corporation which expects regulators to approve the follow-on offering of subsidiary Pure Foods and after SMC reported higher recurring income.

Another recommended stock is Semirara Mining and Power Corporation which is increasing capital expenditures by 62 percent to R13 billion to enhance both its coal mining and power generation capabilities.

Meanwhile, Eagle Equities Head of Research Chris Mangun said technical charts show a volume spike last week “which can be viewed as a selling climax.”

“If we lose another 100 points this week then we are officially in a correction as we will be down 10 percent from the high. We may continue to see the market take a loss, but I think we will see a reversal sometime in the second quarter,” he noted.