Property stocks are hot buys this week

Property stocks may be the ideal stocks to take hold while the local market seeks for more leads abroad amid a shortened trading week.

For this week, BPI Asset Management expects the local benchmark index to move together with the international markets due to the lack of significant catalysts coming from here.

There will be no trading on Monday until Tuesday to pave the way for the observance of All Saints Day.

As for the stocks, Luis Limlingan, head of research and sales at Regina Capital Development Corp., took note of the rise in yields seen in the real estate and utilities sectors.

In its latest investment guide, COL Financial Group, Inc. gave a buy recommendation on the stocks of Ayala Land, Inc., Filivest Land, Inc., Megaworld Corp., and Vista Land and Lifescapes Inc.

COL also advised investors to keep their shares in Robinsons Land, Inc. and SM Prime Holdings, Inc.

Limlingan said in the next week's shortened trading period, market participants will see further reaction to US gross domestic product (GDP) results, the US presidential election happening in November 7, and more local earnings data.

Surpassing growth forecasts, the US GDP grew at an annual rate of 2.9 percent in the third quarter, its strongest pace since the third quarter of 2014.

For next week, the Philippine Stock Exchange index (PSEi) is expected to trade between 7,300 to 7,700.

Last week, the local equities market registered losses as investors became wary ahead of the long weekend break, with US interest rate concerns dampening risk appetite across the region.

The PSEi declined by 40.34 points on Friday, or 0.54 percent, closing at 7,404.80.

"Philippine stocks continued their sell-off as US stocks closed with modest losses amid a tug of war between earnings and rising sovereign bond yields. Investors took precaution as they waited for the latest US GDP figures coming out later tonight. In addition, the long holiday increased the demand to remain liquid for many funds," Limlingan said.