Last week, the Philippine stock market ended at 6,352.12, down 144.20 pts. (-2.22% week-on-week), as the index struggled with heightened risk aversion ahead of US President Trump’s inauguration as the 47th US President and the release of the US Dec inflation print. Most of the decline occurred early in the week, with broad-based losses and foreign selling weighing heavily on sentiment. By midweek, gains from bargain-hunting in select sectors were short-lived as a late-session sell-off reversed optimism. The week closed with a modest rebound, driven by opportunistic buying in Financials and Holding Firms. Investors also digested mixed developments locally and internationally: (1) Fitch Solutions’ upgraded economic growth outlook for the Philippines at 6.3% for 2025 (5.8% for 2024) (2) FY24 vehicle sales growth of 8.7% based on data by CAMPI-TMA, and (3) the US Dec 2024 inflation rate coming in at 2.9% (prev. 2.7%), which bolstered hopes of Federal Reserve easing this year.<\/p>\n\n\n\n
This week, we expect the PSEi to remain under pressure early in the week, with the potential for a slight rebound towards the end of the week. With the absence of any major local catalysts, concerns over the impending Trump 2.0 policies, the continued rise in the US Treasury yields, and the expected rate hike from the Bank of Japan are likely to weigh on the local equities market. On the domestic front, sentiment may be further dampened by the continued strength of the US dollar (USD) against the Philippine peso (PHP) and the anticipated significant hike in fuel prices, with gasoline rising by PHP1.35 to PHP1.60 per litre, diesel by PHP2.30 to PHP2.60 per litre, and kerosene by PHP2.30 to PHP2.50. Nevertheless, bargain-hunting as the market hovers near its long-term support levels may offer some cushion, with select oversold stocks presenting opportunities for value buying.<\/p>\n\n\n\n
Recommendation<\/strong><\/td>| Buy<\/td><\/tr> | 1-Year Target Price<\/strong><\/td> | PHP <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n | <\/div>\n\n\n\n JFC’s share price has been trending downards after its failed breakout from its resistance level of PHP279.80. JFC is currently trading below its 20-day, 50-day, 100 day, and 200-day moving averages (MAs) which has driven its pullback toward its key support level. On momentum indicators, ts MACD and RSI are both neutral levels, supporting its recent strong downward momentum,. Therefore, given its recent close at PHP242.60, a reversal is possible due to its close above its key support level.<\/p>\n\n\n\n Accumulating JFC at current levels between PHP245.00-252.00 is advisable. Set stop limit orders at PHP226.00 and take profits at PHP285.00. For long-term investors, we have a fundamental target price of PHP330.00.<\/p>\n\n\n\n <\/div>\n\n\n\n 2. Century Pacific Food, Inc. (CNPF)<\/h3>\n\n\n\n
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