Power, banking stocks are ideal

Several stocks in the power and banking sectors may take the center stage this week while market participants anticipate listed companies to start releasing their first-half earnings performance.

First Metro Investment Corp. (FMIC) president Rabboni Francis Arjonillo said he "continues to see value in the market to end the year higher, but greater selectivity will have to be the underlying theme."

"We do think many conglomerates, some power producers, banking stocks and a few consumer issues have upside potential, as the economy continues to show positive signals," Arjonillo said.

Online brokerage firm 2TradeAsia.com agreed with this, saying that a fresh batch of corporate earnings is slated to be released this week with radars set on banking, power, and property sectors.

"Select index-based issues within these categories might serve as lead in the market’s overall 1H earnings expectation. Investors will closely monitor the second quarter results of index movers such as BDO (BDO Unibank Inc.), AP (Aboitiz Power Corp.), AEV (Aboitiz Equity Ventures, Inc.), MER (Manila Electric Co.) and MPI (Metro Pacific Investments Corp)," the brokerage said.

Local bourse finished the week higher, breaching the psychological resistance of 8,000. This, as sentiment was buoyed by Federal Reserve’s mid-week meeting and President Rodrigo Duterte’s State-of-the-Nation Address (SONA).

"Having trounced beyond the 8,000 mark, the likelihood for the rally’s continuity will be tested," 2TradeAsia said