{"id":330209,"date":"2024-11-04T12:23:02","date_gmt":"2024-11-04T04:23:02","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330209"},"modified":"2024-11-04T12:23:05","modified_gmt":"2024-11-04T04:23:05","slug":"stock-picks-for-the-week-nov-4-8-2024-by-first-metro-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-picks-for-the-week-nov-4-8-2024-by-first-metro-securities\/","title":{"rendered":"Stock Picks for the week (Nov 4-8, 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 saw its largest decline since the June bottom, falling by 2.34% week-on-week to close at 7,142.96 (-171.27pts). Investors mainly took cues from overseas sentiment as weakness in US Tech shares spilled over to the local market. Moreover, polling bets have started to price in a Donald Trump Jr. presidency, which has historically been negative for emerging markets, such as the Philippines. Meanwhile, rising bond yields and the continued deprecation of the Peso back to the PHP58.0 level also dragged market 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>Expect a volatile week ahead with a downward bias as investors continue to monitor a slew of corporate earnings releases and key data results throughout the week. In particular, consensus estimates see upticks in local unemployment and inflation rates. From the foreign front, the outcome of the US Presidential elections will weigh on the market later in the week. A potential Republican victory may cause heavy selling pressure in anticipation of tighter trade policies, while a Democratic win could be cheered by investors for maintaining the status quo on policies and trade ties. Additionally, Fed expectations of a 25bps policy rate cut to 4.75% may provide some near-term relief. We also expect increased trading activity as investors align their portfolios with the results of the MSCI quarterly rebalancing announcement on 07 Nov 2024.<\/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. RL Commercial REIT, Inc. (RCR)<\/h3>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td><strong>Recommendation<\/strong><\/td><td>Buy on support<\/td><\/tr><tr><td><strong>1-Year Target Price<\/strong><\/td><td>PHP 7.10<\/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>In September 2023, the Securities and Exchange Commission (SEC) approved<br>RCR\u2019s PHP32.92 billion property-for-share swap just three months after filing, which we view as favourable for the REIT. Although a temporary pullback may occur due to the 5.5% discount at which the placement was priced (relative to the announcement date\u2019s, we see this move by RLC as beneficial for RCR. The transaction increased RCR\u2019s public float to 35.93%, providing flexibility for future asset injections, especially as RLC plans to infuse commercial assets into RCR\u2019s portfolio.<\/p>\n\n\n\n<p>Accumulating RCR on support around PHP6.00 to PHP5.80 is advisable. Take profits 15% above your average cost and set stop-loss limits.<\/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. Semirara Mining and Power Corp. (SCC)<\/h3>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td><strong>Recommendation<\/strong><\/td><td>Buy on pullbacks<\/td><\/tr><tr><td><strong>1-Year Target Price<\/strong><\/td><td>PHP 38.00<\/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>In 2023, the Philippines remains heavily reliant on coal-fired power, with 62% of its energy sourced from coal, making it the most coal-dependent country in Southeast Asia. We believe the Department of Energy\u2019s (DOE) plans to cancel 105 renewable energy contracts due to project delays will prolong coal\u2019s role as the primary energy source in the Philippines. This development supports SCC\u2019s main coal mining business.<\/p>\n\n\n\n<p>Accumulating on pullback or around the PHP33-33.50 level is recommended.<br>Take profit around PHP38.53 and set a stop-loss at PHP30.82.<\/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.\u00a0AREIT, Inc. (AREIT)<\/h3>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td><strong>Recommendation<\/strong><\/td><td>Buy on pullbacks<\/td><\/tr><tr><td><strong>1-Year Target Price<\/strong><\/td><td>PHP<\/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 see two plausible scenarios for AREIT inclusion in the index. First, if CBC fails to meet liquidity requirements and NIKL is removed, AREIT would be next in line based on market capitalisation. Second, if market capitalisation is calculated using the latest outstanding shares instead of a time-weighted average, AREIT&#8217;s 841 million share issuance from its property-for-share swap with ALI could secure its spot.<\/p>\n\n\n\n<p>Accumulating AREIT once it pulls back near the 50-day MA around PHP38.00 or the next support at PHP36.60 is advisable. Take profits 15% above average cost and set stop-loss limits 8% below average cost.<\/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-330209","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\/330209","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=330209"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330209\/revisions"}],"predecessor-version":[{"id":330211,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330209\/revisions\/330211"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=330209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=330209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=330209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}