Infra, consumption-related are stocks to buy

The stocks to buy this week are companies benefitting from the high infrastructure spending push coming from the new administration as well as the sustained consumption growth.

The latest "Market Call" research of First Metro Investment Corp. (FMIC) still preferred stocks on the consumer sector. It also highlighted the heavy infrastructure spending of the government benefiting many aspects of the economy, including the capital market.

"Heavy infrastructure spending in April went up by 26 percent, provided the second leg for the investment [or Capital Formation] run. This second engine adds on to the first engine–consumer spending which has provided consistently solid impetus to the economy," FMIC said.

"Going into the second half of 2016, our preferred sector i.e. consumer staples has done very well in terms of price appreciation. We prefer to stay long and add high yield stocks as our preferred picks," it added.

One company that could gain from the high infrastructure spending is Cebu Air, Inc. since the development of airports is directly beneficial to airlines.

Regina Capital Development Corp. (RCDC), as well as COL Financial Group, Inc., had recently put a 'buy' recommendation for Cebu Air.

For consumer, COL Financial rated the stocks of Puregold Price Club Inc. and Concepcion Industrial Corp. buy.

On Friday, Sluggish regional market pulled local stock market lower, with the benchmarket index retreating back to 7,900level at the end of the trading week.

Moving forward, BPI Asset Management said it expects the local equities market to seek direction from data releases locally and globally, and the continuation of the second quarter earnings releases from domestic corporations.

"Expect foreign fund flows to drive the direction that local stock prices would take. Absent any market-moving development, the stock market would still continue to be stuck trading within a range," it said.

Investors will specifically take cue from the gross domestic product (GDP) growth results in the United States and its potential impact to the Fed rate hike schedule.

Last week, stocks that are involved in the technology sector were the ones to watch out for, while consumer stocks have maintained their popularity in the market.

First Metro Head of Research and Assistant Vice President Cristina Ulang said technology "is a growing sector" in the local stock market.

COL earlier gave a 'buy' recommendation on the stocks of ISM Communications, Corp., Cyber Bay Corp., and Integrated Micro-Electronics Inc.