FREE Stock Picks for the week (Aug 28-31, 2018) by First Metro Securities

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Our Partner Broker’s Macro-Economic Analysis

The PSEi managed to climb back to the 7,700-level, as it gained 182.95 points (+2.4% week-on-week) to close the week at 7,766.47. The local bourse tracked the global market’s uptrend for the week as trade talks between U.S. and China resume and as the U.S. stock market hits a record high.

In the latter part of the week last week, Asian markets were slightly down as U.S. and China hit each other with the second round of tariffs on US$16 billion of goods that took effect last Thursday, Aug.23. At the Jackson Hole meeting last week, U.S. Federal Reserve (Fed) Chairman Jerome Powell stated that he remains firm on the Fed’s gradual approach in raising interest rates due to a robust U.S. economy, strong labor market, and manageable inflation.

 

PSE Market Outlook this week

This week, investors may continue to digest trade-related news as U.S. and Chinese officials have ended two days of talks without significant progress. The lack of direction and the possibility of more tariffs may result in investors to be cautious. While there could be a correction due to lack of local catalysts, we think that the pullback would be shallow.

 

 

Our Partner Broker’s Stock Picks this week

1. Semirara Mining and Power Corp. (SCC)

Recommendation: BUY

1-Year Target Price: PHP 40.10

Analysis: SCC was one of the top index losers last week, declining by 2.5% week-on-week. Countertrend traders may look to buy the stock at current prices as the stock trades near oversold levels (RSI: 33.7).

 

2. Megaworld Corp. (MEG)

Recommendation: BUY

1-Year Target Price: PHP 6.00

Analysis: MEG is now trading near its support (PHP 4.50) after dropping 5.3% last Friday. MACD indicates that the stock is still on an uptrend since both MACD and signal lines are still above the zero line. Those looking to buy are recommended to enter at current prices to buy the pullback near its support at PHP 4.50 for a better risk to reward.

We have a Buy call on MEG with Target Price at PHP 6.00. Recent news that a Chinese police apprehended an unlicensed gambling operation which took bets on a Philippine-based website renewed concerns on regulatory risks inherent in Philippine Offshore Gaming Operator (POGO) landscape and dragged sentiment on MEG, which has the most exposure in POGO office leasing compared to other players in the sector.

 

3. LT Group, Inc. (LTG)

Recommendation: BUY

1-Year Target Price: PHP 22.30

Analysis: The stock has been consolidating for the whole month and is now trading near the support level at PHP 17.00 (S1).

Those looking to buy are recommended to enter at current prices to buy the pullback near its support at S1 for a better risk to reward. Watch its 50-day MA (PHP 17.88). Keep stops below S1.

 

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

First Metro Securities
First Metro Securities

First Metro 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.