{"id":330081,"date":"2024-10-23T10:33:56","date_gmt":"2024-10-23T02:33:56","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330081"},"modified":"2024-10-29T00:49:55","modified_gmt":"2024-10-28T16:49:55","slug":"stock-picks-for-the-week-oct-21-25-2024-by-first-metro-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-picks-for-the-week-oct-21-25-2024-by-first-metro-securities\/","title":{"rendered":"Stock Picks for the week (Oct 21-25, 2024) by First Metro Securities"},"content":{"rendered":"\n

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

Last week, the PSEi ended the volatile week higher by 1.44% to 7,415.73 (+105.41 points). Early gains were driven by value buying and optimism surrounding the expected 25-basis point (bps) cut by the Bangko Sentral ng Pilipinas (BSP) in its Oct policy meeting. However, the market pulled back midweek despite the rate cut, as investors passively received the widely anticipated reduction, which brought the key rate to 6%. While the BSP lowered its 2024 inflation forecast to 3.1% (from 3.3%), it raised projections for 2025 and 2026 to 3.3% and 3.7%, potentially reversing earlier market optimism. Sentiment was also weighed down by the Philippine Peso (PHP) slipping back to the 57-level against the US Dollar (USD). Despite this, the market managed to recover slightly towards the end of the week, closing with a modest gain. Foreign investors alternated between net buying and selling, while overall turnover remained thin, reflecting ongoing concerns on both local and global economic conditions.<\/p>\n\n\n\n

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

This week, we anticipate the PSEi to trade sideways with a slight upward bias as investors await key data and earnings releases. In the absence of market-moving catalysts, the index is likely to build on the BSP\u2019s interest rate decision from last week and will likely follow Wall Street’s lead, where both the S&P 500 and the Dow Jones Industrial Average (DJIA) surged to new record highs last Friday amid stronger-than-expected earnings reports. Additionally, some relief is expected, with gasoline prices projected to drop by PHP0.50 to PHP0.75, diesel by PHP1.00 to PHP1.15, and kerosene by PHP0.90 to PHP1.00, following four consecutive weeks of increases.<\/p>\n\n\n\n

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

1. Bank of the Philippine Islands (BPI)<\/h3>\n\n\n\n
Recommendation<\/strong><\/td>Trailing Stop<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 141.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

BPI is currently trading around PHP 140.00, which aligns with our fundamental Target Price. The stock recently tested the resistance level at PHP 145.00 but failed to break above it. Despite trading above key moving averages (MA) (20-day, 50-
day, 100-day, and 200-day), momentum indicators suggest that a pullback may be likely. The MACD line has crossed below the signal line, signaling a bearish crossover. Meanwhile, the RSI remains within the neutral range, indicating the stock is neither overbought nor oversold.<\/p>\n\n\n\n

On price movement, a previous upward trend line was broken, indicating that the strong bullish momentum has weakened. Hence, at current levels, we recommend implementing trailing stops.<\/p>\n\n\n\n

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

2. Emperador Inc. (EMI)<\/h3>\n\n\n\n
Recommendation<\/strong><\/td>Buy on Breakout<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 16.20<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

EMI has been trading sideways between PHP 18.50 to PHP 18.90 since Mar 2024 with the RSI at 43.58 signaling that the counter is nearing oversold conditions. While the stock is in consolidation, a definitive breakout above or below these levels, accompanied by increased volume, could signal a potential uptrend reversal. We acknowledge that investor interest in the stock is currently muted; therefore, we recommend buying EMI once it breaks out of its range, supported by strong trading volume.<\/p>\n\n\n\n

Accumulating once EMI breaks out of its range at PHP 18.91 with strong volume is advisable. Take profits at PHP 21.75 and set stop loss limits below PHP 17.39.<\/p>\n\n\n\n

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

3.\u00a0MREIT, Inc. (MREIT)<\/h3>\n\n\n\n
Recommendation<\/strong><\/td>Buy on Breakout<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 14.06<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

MREIT is forming a bullish rounding bottom pattern between April and October 2024, with the price approaching a crucial resistance level at PHP 14.15. This pattern suggests a gradual shift in market sentiment from bearish to bullish. Currently, the stock is trading above key moving averages (MA) (20-day, 50-day, reinforcing the bullish outlook, while momentum indicators are also pointing upwards. A break above the resistance, especially if accompanied by increasing volume, would likely confirm the continuation of the uptrend.<\/p>\n\n\n\n

Accumulating MREIT once it breaks above PHP 14.15 is advisable. Take profits at PHP 16.20 and set stop loss limits below PHP 13.00.<\/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":"

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-330081","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\/330081","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=330081"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330081\/revisions"}],"predecessor-version":[{"id":330083,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330081\/revisions\/330083"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=330081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=330081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=330081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}