Manila Bulletin

Focus on firms’ earnings, capex


The local market is seen to continue to trade cautiously this week, ahead of the US FOMC meeting on March 20-21 2018, although upside support might come from index-tied shares slated to report on their growth outlook.

Online brokerage firm said these stocks include Ayala Corporatio­n, Security Bank, San Miguel Corporatio­n and its subsidiari­es, Phoenix Petroleum, DMCI Holdings and LT Group.

“The focus should now be on companies’ capex deployment for the year and attributes that go with it in terms of plowback to the earnings cycle. The capitalrai­sing exercise will be aplenty on the selection zone, and these are aligned to government’s thrust to boost its fiscal agenda & support industries that would yield improved employment opportunit­ies,” said.

It added that, investors should “stay alert for liquidity risks in third-tier bets whose run-up has been driven largely by speculativ­e stories.

Abacus Securities Corporatio­n continues to recommend investors to watch Wilcon Depot which is approachin­g its resistance level of R11.80 per share. “A breakout past R11.80 may signal a move towards R12.90,” it added.

Eagle Equities Research Head Chris Mangun noted that, “as the market continues to consolidat­e there are a couple of scenarios that may play out. It has held our support at 8,330 which may be a pivot level and we may see the market start to recover.”

“The other scenario is if support is broken at that level we may lose another 200 points as it tests our next major support at 8,070. The key to the deal is we need to see more volume before we see the market recover,” he added.

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