{"id":330084,"date":"2024-10-29T01:37:25","date_gmt":"2024-10-28T17:37:25","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330084"},"modified":"2024-10-29T01:37:27","modified_gmt":"2024-10-28T17:37:27","slug":"stock-picks-for-the-week-oct-28-31-2024-by-first-metro-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-picks-for-the-week-oct-28-31-2024-by-first-metro-securities\/","title":{"rendered":"Stock Picks for the week (Oct 28-31, 2024) by First Metro Securities"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Market Recap: Stock market last week<\/h2>\n\n\n\n<p>Last week, the PSEi declined by 1.37% week-on-week, closing at 7,314.23, down by 101.50 points. Investor sentiment was negatively impacted by rising US 10-year treasury bond yields as well as the damage caused by Severe Tropical Storm Kristine. The Department of Agriculture (DA) has estimated initial damages of approximately PHP80.8mn in the industry, with the rice and corn sectors in the Bicol and MIMAROPA regions being the most affected. In local corporate news, Bank of the Philippine Islands (BPI) and Robinsons Retail Holdings, Inc. (RRHI) began the 3Q24 earnings season last week with mixed performance.<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">PSE outlook this week<\/h2>\n\n\n\n<p>This week, we anticipate the local stock market to trade sideways with a downward bias given the anticipated low trading volumes due to the observance of the All Souls\u2019 and All Saints\u2019 Day holidays. Investors will monitor the earnings reports of key index names early in the week. Internationally, focus will be on the final week before the US Presidential elections and the release of US jobs data.<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Stock Picks this week<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">1. Nickel Asia Corp. (NIKL)<\/h3>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td><strong>Recommendation<\/strong><\/td><td>Sell<\/td><\/tr><tr><td><strong>1-Year Target Price<\/strong><\/td><td>PHP 4.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Based on our scenarios, NIKL will be removed from the PSEi, as it will rank below the 36th position. This is mainly due to lower market capitalisation attributed to a 25.72% decline in VWAP from 2 Jan 2024 to 15 Oct 2024. Additionally, NIKL\u2019s net attributable income dropped by 53% year-in-year (y\/y) in 2023 due to the low price of nickel ore, which has contributed to the decline. <\/p>\n\n\n\n<p>NIKL is out of the index if AREIT Inc. (AREIT) and\/or China Banking Corp. (CBC) enters the index We suggest lightening positions to deter from potential unfavourable impacts of possible PSEi deletion.<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">2. China Banking Corp. (CHIB)<\/h3>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td><strong>Recommendation<\/strong><\/td><td>Buy on Breakout<\/td><\/tr><tr><td><strong>1-Year Target Price<\/strong><\/td><td>No Consensus Target Price<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>CBC\u2019s inclusion in the PSEi is highly probable. However, its entry hinges on meeting the liquidity criteria. Currently CBC has ranked in the 3rd quartile for median daily value traded in eight out of ten months in 2024. We believe that CBC is likely to reach the nine-month requirement, with robust trading activity driven by its strong operating performance and easing monetary policy by the BSP. <\/p>\n\n\n\n<p>The market&#8217;s anticipation of its index inclusion has boosted CBC\u2019s median daily value traded to PHP46.5 million from Oct 1 to 24 \u2013 a 1.9x increase from September, marking its most liquid month thus far. Accumulating CBC at current levels is advisable.<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">3.\u00a0Wilcon Depot, Inc. (WLCON)<\/h3>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td><strong>Recommendation<\/strong><\/td><td>Sell<\/td><\/tr><tr><td><strong>1-Year Target Price<\/strong><\/td><td>PHP 18.50<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>We foresee WLCON\u2019s removal from the PSEi only if CBC and AREIT meet the requirements to be added to the index. This scenario hinges on two factors: (i) CBC meeting the liquidity criteria and (ii) AREIT\u2019s market capitalisation being calculated based on the latest number of outstanding shares rather than a time-weighted average. We also expect downward price pressure on WLCON following the earnings announcement. We believe that WLCON may report weak 3Q 2024 earnings results due to weak demand for home improvement products, exacerbated by frequent unfavourable weather disturbances.<\/p>\n\n\n\n<p>We suggest lightening positions to deter from potential unfavourable impacts of possible PSEi deletion.<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:16px\"><em><em>This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about <a href=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/our-partner-brokers\/\">our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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-330084","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\/330084","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=330084"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330084\/revisions"}],"predecessor-version":[{"id":330086,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330084\/revisions\/330086"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=330084"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=330084"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=330084"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}