INFRA AND CONSUMER FIRMS CAN EXPECT ROSY PROSPECTS

UTrade by Unicapital Securities projects good performance for companies in infrastructure and consumer goods Brokers cite current administration’s thrust to increase infrastructure as a boost to listed firms

Rosy propects await infrastructure and consumer companies in the Philippine Stock Exchange (PSE), according to Neil Gabaldon, UTrade by Unicapital Securities manager. He said companies involved in these two industries hold high revenue potential, given the infrastructure thrust of the Duterte administration and the robust private consumption spending expected to pump prime consumer companies.

Rosy propects await infrastructure and consumer companies in the Philippine Stock Exchange (PSE), said officials of an online brokerage firm.

Neil Gabaldon, UTrade by Unicapital Securities manager, said companies involved in these two industries hold high revenue potential, given the infrastructure thrust of the Duterte administration and the robust private consumption spending expected to pump prime consumer companies.

“Because of the 10-point agenda of the current administration, infrastructure (companies) will do good, assuming these (infra plans) push through,” added Carlos Leandro Felipe, UTrade consultant.

Leading the infrastructure business in the PSE is Metro Pacific Investments Corp. (MPIC), a Pangilinan-led holding company, that operates toll roads, water utilities, light rail, and hospitals. Likewise, Ayala Corp., Aboitiz Equity Ventures, and DMCI Holdings also have infrastructure investments.

Meanwhile, some of the largest consumer companies are Jollibee Foods Corp. and Universal Robina Corp.

To boost infrastructure, the country’s regulators already allowed companies who build infrastructure projects under the government’s public-private partnership scheme to list shares on the stock exchange. This will allow them to raise capital through the stock exchange.

The guidelines cover compa- nies or joint ventures that have been awarded PPP contracts worth not less than P5 billion. Real estate

On the other hand, real estate firms that are decentralizing from the country’s key cities outside Metro Manila and Metro Cebu might also perform well this year.

Cebu Landmasters Inc (CLI), the first Cebu-based real estate company to apply for an initial public offering (IPO), holds potentials, said Felipe.

“We haven’t seen their books yet, so we can’t say conclusively. But if they plan to purchase land (in areas) with high-growth perspective or forecast, maybe,” he said.

By the end of the year, Felipe projects the PSE index to hover between 7,500 and 7,600.