FREE Special Report: BSP interest rate policy meeting’s impact on PSE stocks (June 2017)

PinoyInvestor’s Special Reports cover our partner brokers’ expert analysis on a range of topics affecting the stock market. These may include economic updates, sector analyses, upcoming IPOs, and more! Learn how you can use this report in the PinoyInvestor guide.

 

Our Partner Broker’s Analysis

In Focus: BSP Meeting on Thursday

The PSEi failed to remain above the 8,000 level last week and succumbed to profit-taking after the US Fed increased its policy rates by 25 basis points (0.25%) last week.

With the PSEi closing below its key support of 7,900 last week, we expect the market to trade sideways as investors look for clues during the BSP’s Monetary Board policy meeting this Thursday. As we said in our previous note last June 15, we expect the BSP to hike its policy rates (by 25 to 50 bps) to bring down inflation rate as it is now trending above the 3% level since February, and to protect the stability of the peso.

 

Our Partner Broker’s Recommendation

Our recommendation is to trade selectively and accumulate stocks on dips near the 7,800 level.

Among power companies that remain the laggards of the PSEi due to an oversupply in energy reserves until 2020, we recommend EDC (BUY, Target Price: PHP 7.05) as it is not directly exposed to the weakness of the spot market as compared to its peers.

Among banks, we still see meaningful upside for MBT (BUY, Target Price: PHP 100.00) and EW (BUY, Target Price: PHP 33.00).

In the consumer sector, we like relatively undervalued companies such as:

PGOLD (BUY, Target Price: PHP 49.40)

MAXS (BUY, Target Price: PHP 27.40)

PIZZA (BUY, Target Price: PHP 14.75)

MRSGI (BUY, Target Price: PHP 4.35)

EMP (BUY, Target Price: PHP 8.30)

For WLCON, however, we recommend to take profits as it is almost trading near our Price Target of PHP 7.00.

 

This report is prepared by PinoyInvestor’s partner broker below. Sign up to this stock broker to avail of their complete trading brokerage services:

AP Securities (formerly Angping & Associates Securities)
AP Securities (formerly Angping & Associates Securities)

AP Securities (formerly Angping & Associates Securities) is one of PinoyInvestor’s partners in delivering superior and reliable stock research reports that help Filipino investors make smart stock investing decisions! Learn more about them here.