Consumer, infra stocks to support local mart

Stocks in the consumer and infrastructure sectors will continue to provide support in the overall movement of the local stock market which is currently on a consolidation mode amid lack of fresh catalysts.

First Metro Investment Corporation President Rabboni Francis B. Arjonillo said in the recent Market Call Research that he still favors infrastructure and consumer stocks.

Arjonillo preferred infrastructure stocks due to the doubling in national government’s infrastructure budget to R860.7 billion this year.

Consumer stocks in the meantime benefits from an increase in disposable income and tend to show visible earnings prospects.

Online brokerage 2TradeAsia. com said that for this week, radar screens are still up on earnings announcement, especially with large-caps PLDT, Inc., Aboitiz Power Corp. and Aboitiz Equity Ventures Inc. set to release numbers within the week.

"More importantly, fund managers will take a look on other ‘boon or bane’ variables for specific sectors, especially after proposals were floated on the need to have Smart conduct an IPO (initial public offering) in conjunct with the extension of its legislative franchise," 2TradeAsia said.

"Within the power sector, investors would also weigh the effect of the proposed carbon tax law, excise, and VAT charges on coal prices, vis-à-vis alternative energy sources," it added.

The online brokerage firm also noted that the Philippine Stock Exchange index’s (PSEi) short-term declining channel might suggest continued consolidation for now, unless fresh catalysts arise in the coming days.

"The macro lift would definitely come from fiscal stimulus measures, one of which has been announced by President Trump’s support for increased infra spending. At home, market watchers will heed for President Duterte’s support for capitalintensive sectors, as well as his other economic roadmap that will help attract investments," it further said.

Lastly, it pegged the immediate support at 7,150 to 7,200, while resistance level is at 7,300.

PSEi only went up by 12 points, or 0.16 percent week-on-week to end at 7,247 last week.