{"id":328591,"date":"2024-07-29T11:45:01","date_gmt":"2024-07-29T03:45:01","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=328591"},"modified":"2024-09-01T22:39:09","modified_gmt":"2024-09-01T14:39:09","slug":"stock-picks-for-the-week-july-29-aug-2-2024-by-first-metro-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-picks-for-the-week-july-29-aug-2-2024-by-first-metro-securities\/","title":{"rendered":"Stock Picks for the week (July 29-Aug 2, 2024) by First Metro Securities"},"content":{"rendered":"\n

Market Recap: Stock market last week<\/h2>\n\n\n\n

The PSEi concluded the shortened trading week lower at 6,726.01 (down 0.97% week-on-week; down 65.7 points). The market took a breather from its four-week win streak as market participants digested mixed local and international developments, including: <\/p>\n\n\n\n

(i) the withdrawal of US President Joe Biden from the 2024 Presidential Race and the subsequent appointment of Kamala Harris as the Democratic Party’s candidate; <\/p>\n\n\n\n

(ii) President Ferdinand Marcos Jr.’s third State of the Nation Address (SONA), during which he mandated a total ban on Philippine Offshore Gaming Operators (POGOs) by year-end; and <\/p>\n\n\n\n

(iii) the onslaught of Super Typhoon Carina (international name: Typhoon Gaemi), which resulted to over PHP250mn in crop damages and a suspension of stock market trading on Wed, 24 Aug 2024. <\/p>\n\n\n\n

In other news, the US Jun 2024 Personal Consumption Expenditures (PCE) price index slightly exceeded expectations, registering a 0.2% month-on-month increase (estimate: 0.1% vs. previous: 0.1%), which will be pivotal for the FOMC interest rate decision this week.<\/p>\n\n\n\n

<\/div>\n\n\n\n

PSE outlook this week<\/h2>\n\n\n\n

This week, we anticipate a slight rebound in the benchmark index, driven by the upcoming release of key data and earnings releases. <\/p>\n\n\n\n

Locally, market participants will focus on the 1st half (1H) 2024 earnings reports led by financial heavyweights such as BDO and MBT, alongside key economic indicators like the PH PPI and PH PMI.<\/p>\n\n\n\n

Investors will also be focusing on the Federal Reserve\u2019s interest rate decision on Thursday (01 Aug 2024), which is expected to remain unchanged at 5.5%. Language from the upcoming Fed’s commentary may provide cues for the Bangko Sentral ng Pilipinas’ (BSP) monetary policy direction ahead of its next meeting on 15 Aug 2024. <\/p>\n\n\n\n

Globally, the ongoing geopolitical unrest in the Middle East may weigh down sentiment as reports have emerged of Israeli strikes on southern Lebanon.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Stock Picks this week<\/h2>\n\n\n\n

1. SM Prime Holdings, Inc. (SMPH)<\/h3>\n\n\n\n
Recommendation<\/strong><\/td>Lighten position<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 36.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

SMPH rose by as much as ~22% after breaking out of its triple bottom base. It is currently trading above medium-term key moving averages (MA) (50-day and 100- day) but was recently rejected by the 200-day MA. The counter currently benefits from strong momentum with RSI at near overbought levels. <\/p>\n\n\n\n

Nevertheless, we suggest lightening positions, in light of recent economic developments. Amid the current uncertainty of the impact of the POGO exodus, lightening positions is advisable.<\/p>\n\n\n\n

<\/div>\n\n\n\n

2. Ayala Land, Inc. (ALI)<\/h3>\n\n\n\n
Recommendation<\/strong><\/td>Buy on support<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 35.80<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

All indicators are upward for ALI as it broke above its consolidation range in the PHP26.00 to PHP29.00 area. After a period of sideways trading, ALI is currently trading above all its key moving averages (20-day, 50-day, 100-day, and 200-day) with sufficient volume as it filled the gap formed in early-Apr. <\/p>\n\n\n\n

At current levels, its previous resistance at PHP29.00 is attempting to reverse as support as the counter turns bullish. We recommend accumulating once the support holds around this area. Accumulating ALI once support holds around the PHP29.00 range is advisable. Set stop limit orders 8% below average price and take profits above 15% of entry price.<\/p>\n\n\n\n

<\/div>\n\n\n\n

3.  Filinvest Land, Inc. (FLI)<\/h3>\n\n\n\n
Recommendation<\/strong><\/td>Lighten position<\/td><\/tr>
1-Year Target Price<\/strong><\/td>No consensus Target Price<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

FLI is showing mixed momentum within its consolidation range of PHP0.64 to PHP0.69. Currently trading near the resistance, it is above the 20-day (PHP0.67) and 50-day (PHP0.679) moving averages (MAs), but still below the 100-day (PHP0.687) and 200-day (PHP0.654) MAs. Volume is light to moderate, and the RSI of 57.04 suggests that the stock is approaching overbought territory. <\/p>\n\n\n\n

Given the recent news of POGO termination, it may be prudent to sell the stock as the potential negative impact on the market could prevent FLI from sustaining any upward movement. Lightening positions at current levels is advisable. Should the stock breakdown, the next support is at PHP0.54.<\/p>\n\n\n\n

<\/div>\n\n\n\n

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":"

Our stock picks for the week<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1372,11],"tags":[],"class_list":["post-328591","post","type-post","status-publish","format-standard","hentry","category-stock-picks","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\/328591","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\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=328591"}],"version-history":[{"count":3,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/328591\/revisions"}],"predecessor-version":[{"id":328607,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/328591\/revisions\/328607"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=328591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=328591"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=328591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}