Manila Stock Market Experts Provide Stock Picks Amid Slump
The recent slump in the stock market has prompted market experts to advise investors to be more selective in their investment decisions. According to the latest survey, experts still mostly recommend companies that are part of the Philippine Stock Exchange index (PSEi) or have the potential to be included in the roster of blue-chip stocks. Some experts have also highlighted the potential of selected second-liner stocks.
April Lynn Tan, the chief equity strategist of COL Financial Group, suggested that investors consider diversified names with stable dividends and value plays with single-digit price to earnings ratio (P/E). Joseph Roxas, the president of Eagle Equities, advised investors to look for undervalued stocks while speculating on which companies could join the PSEi during the next index rebalancing. Analysts from Regina Capital Development, Philstocks, and ATR Asset Management shared their favorite stock picks, which mostly consisted of large-cap stocks.
April Lynn Tan recommended Aboitiz Power Corp (AP) as a defensive play due to the risks facing the economy. The company stands to benefit from the tight power supply situation in the country. Tan highlighted that AP’s valuations are attractive, with a price to earnings ratio of 9.9X, and it provides investors with a dividend yield of 5.1 percent for 2023. She also recommended AREIT for its potential to benefit from a decline in interest rates and GT Capital Holdings for its exposure to the banking and consumer sectors.
Joseph Roxas suggested investing in Manila Water, which recently received a price increase, and Bloomberry Resorts Corp, which is expected to open a new gaming facility in Quezon City. He also recommended Metrobank, citing its attractive valuation compared to its peers.
Other experts provided their stock picks as well. Luis Limlingan from Regina Capital Development Corp recommended Jollibee Foods Corp, Metrobank, and International Container Terminal Services Inc. Claire Alviar from Philstocks Financial Inc recommended SM Prime Holdings Inc. Mikhail Plopenio, also from Philstocks Financial Inc, recommended Puregold Price Club Inc. Japhet Louis Tantiangco, also from Philstocks Financial Inc, highlighted Metrobank as a stock pick.
Meanwhile, Dionill Jamil, the head of equity research at ATR Asset Management, recommended Bank of the Philippine Islands (BPI), praising its fastest growing loans portfolio among the three big banks in the country.
While the stock market slump presents challenges, market experts believe that careful investment decisions focused on certain stocks with potential can still yield favorable returns.
