The Philippine Peso has continued to appreciate sharply against the dollar as global markets look forward to the nearing conclusion of the Fed\u2019s monetary policy tightening. There are some odds also of a potential rate cut towards the end of 2023 that markets are trying to price in. <\/p>\n\n\n\n
After breaking the P54.00 level, the Peso is now bound chart-wise to appreciate towards the P52.00-level. This is likely to stimulate further a positive sentiment in the local market. <\/p>\n\n\n\n
In particular, we see stocks that have been hammered last year due to the depreciating value of Peso (such as those net importers and companies with high dollar-denominated debt) as potential big movers from this narrative. <\/p>\n\n\n\n
This set of companies include auto importer GTCAP<\/strong> (Target Price: P640.00\/share), the two telco incumbents: TEL<\/strong> (Target Price: P1,636\/share) and GLO<\/strong> (Target Price: P3,040\/share), and select conglomerates: AC<\/strong> (Target Price: P928.00\/share), SM<\/strong> (Target Price: P1,123\/share), and JGS<\/strong> (Target Price: P51.00\/share). <\/p>\n\n\n\n We would also add URC<\/strong> (Target Price: P168.00) in this list, albeit it was able to show some resiliency last year, as 42% of its input are being imported.<\/p>\n\n\n\n