{"id":326177,"date":"2023-12-22T13:06:44","date_gmt":"2023-12-22T05:06:44","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=326177"},"modified":"2023-12-22T13:06:45","modified_gmt":"2023-12-22T05:06:45","slug":"foreigners-buying-pse-stocks","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/foreigners-buying-pse-stocks\/","title":{"rendered":"Special Report: Foreigners are buying these PSE stocks"},"content":{"rendered":"\n

Foreign money entering the market<\/h3>\n\n\n\n

Ever since the announcement of a more dovish policy stance during the last Fed meeting, foreign investors have noticeably been more optimistic and have brought a greater current of capital into the local market. With the previous trading day bringing another round of net foreign buying, we pondered whether the most heavily bought stocks were fundamentally deserving of all of the sudden love, or if they were merely fortunate to be beneficiaries of the rising tide.<\/p>\n\n\n\n

Simultaneously, we looked at the most heavily sold stocks to check for bargain opportunities, as well as which names were right to be discarded. We did this by filtering out the top 10 stocks with the heaviest net foreign buying\/selling, and then judged them based on forward P\/E (forward P\/B for banks). Companies lacking historical data were excluded.<\/p>\n\n\n

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MER is the sole name to be axed<\/h3>\n\n\n\n

Among the top names which foreigners picked up recently, we note that most of them were deserving valuation-wise with the exception of MER. Based on available Bloomberg data, consensus sees the company\u2019s forward P\/E at 12.6x, which would mark a 10.2% premium relative to its 5Yr Average P\/E of 11.4x. We note that the hefty valuation appears to be unwarranted given that the mean projection for EPS growth in 2024E actually lies at a slight decline of – 1.4%. We therefore advise investors to hold-off from picking up additional MER shares.<\/p>\n\n\n\n

GLO and ICT deserve the dumping<\/h3>\n\n\n\n

Meanwhile among the stocks which were cast aside, the two names which stood out were GLO and ICT. Similar to MER, forward P\/E projections for the two remained above their historical 5Yr P\/Es. Although EPS prospects for the two were better, their single-digit growth figures were nevertheless not enough to justify their expensive valuations.<\/p>\n\n\n\n

Partial towards URC, PGOLD, and RLC<\/h3>\n\n\n\n

Looking at the roster of unloved names, we are instead more partial towards URC, PGOLD, and RLC as the narrative on inflation and real purchasing power heading into next year bodes well for both URC and PGOLD, while RLC\u2019s heavy mall exposure would also reap the benefits of higher spending capacity amongst consumers.<\/p>\n\n\n\n

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This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Here\u2019s a commentary on an important issue or event affecting the stock market<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-326177","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/326177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=326177"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/326177\/revisions"}],"predecessor-version":[{"id":326180,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/326177\/revisions\/326180"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=326177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=326177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=326177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}