Top stocks for the week Buying windows emerge in market

With investor sentiment sliding as government economic planners scramble to control the storm created by high inflation and a weak peso, some market analysts continue to see a silver lining in select stocks such as San Miguel Corp., Manila Water, and MacroAsia.

“The latest softness presents good windows for seasoned investors who believe on the Philippines’ historical ability to overcome sentiment troughs,” said online brokerage firm 2TradeAsia.com.

It noted that, “while gauges go on “stabilization mode,” it would be good to focus on sectors whose topline expansion is unperturbed, despite macro headwinds.”

The firm said there are other major industry news to look forward to, among which includes the third telco player bid, on top of major infra tickets that are starting to gain traction such as Bulacan/Davao, Panglao airport and NAIA consortium’s original proponent status.

“Hunt for good value plays that are trading at bargain,” advised 2TradeAsia adding that, immediate support is 7,230- 7,350, resistance 7,500-7,550.

Eagle Equities Head of Research Christopher Mangun said local investors have picked up the slack and prevent a bloodbath as foreign investors are selling.

“There is strong indication that the index will end in the green next week. The next support comes in at 7,350. The bottom line is that the market is moving away from relying on foreign funds,” he said.

Mangun added that, “the market may take a little longer to climb as it absorbs all this foreign selling but eventually it will stop. Most of the opportunities this year are in second-liners and speculative issues which will continue until the end of the year or until we see the blue-chips start to perform better.” Abacus Securities is recommending a BUY for San Miguel Corporation, noting that it has pulled back to near support levels after hitting a high of 1180.10 this month.

“A breakout past 1180.10 is needed for the rally to continue. SMC is still above its 50 and 200day moving average. While the trend is up, investors may buy SMC on pullback,” the firm said.

The firm is also recommending a trading buy on Manila Water as a rate hike is expected after the other concessionaire Maynilad has finally been granted one.

Another buy is recommended for MacroAsia which has weakened recently due to a delay in paying out its stock dividend.

“Management assured us that the delay was merely administrative in nature…. Nevertheless, damage has been done and further weakness may be expected once the dividend shares become tradable. Long term investors should use this opportunity to add to or initiate positions in MAC,” said Abacus.