By James A. Loyola

The local stock market is seen to be lackluster this week amid an absence of new market moving news since the bulk of corporate earnings as well as macro economic figures have already been released.

PSE STOCKS - Investors seen to pick bargains amid lackluster trading

Traders work beneath an electronic ticker at the trading floor of the Philippine Stock Exchange in Bonifacio Global City (BGC).(Bloomberg file photo)

“Movement could remain sideways in the near-term as the PSEi trades with a lack of clear immediate catalysts,” said Papa Securities Sales Associate Gabriel Jose Perez.

BDO Chief Market Strategist Jonathan Raveles noted that, “last week’s close at 7,854.39 continues to signal the market to consolidate within the 7,800 to 8,000 levels in the near term. However, downside risk remains towards the 7,500 levels.”

Stock analysts recommend investors to pick up stocks with good earnings and growth prospects that have declined to more affordable levels in last week’s bloodbath.

COL Financial said it is recommending PLDT “because of the turnaround of its mobile phone business, strong position of its fixed line business and strong balance sheet to support aggressive network expansion plan.”

It added that valuations for PLDT are also attractive given the recent sell-off in its share price.

Meanwhile, both Abacus Securities Corporation and COL are recommending a buy on Bloomberry Resorts Corporation after it reported a good second quarter performance.

“It was a record quarter for Solaire with all segments reporting strong results… we are confident the stock should be trading at par with regional peers,” Abacus noted.

COL said “we maintain our BUY rating on BLOOM on valuations as upside is still compelling at 26.4 percent. We still see income growing in the next two years as the resilience of the grind segment will offset the headwinds in the VIP segment.”

Abacus also continues to like Eagle Cement Corporation because “we see sustained growth through 2022 especially if higher tariffs are implemented and if SMC can get its Bulacan airport project in full swing in 1-2 years.”

Leave a Reply

Your email address will not be published. Required fields are marked *