Last week, the PSEi declined by 1.52% week-on-week to close at 6,063.33 (down 93.66 points). Investors remained cautious throughout the week amid inflation fears after US President Donald Trump announced plans for \u201creciprocal tariffs\u201d on US trade partners and a 25% tariff on all aluminum and steel imports. Bearish sentiment was exacerbated by higher-than-expected US CPI and PPI prints at 3.0% (consensus: 2.9%) and 3.5% (consensus: 3.4%), respectively. <\/p>\n\n\n\n
On the local front, the market digested the results of the MSCI Quarterly Index Review for Feb 2025, wherein the Philippines endured a country downweight (-0.013%). For MSCI Phils Standard Index, JG Summit Holdings, Inc. (JGS), and Universal Robina Corp. (URC) were demoted to the MSCI Phils Small Cap Index, wherein Monde Nissin Corp (MONDE) was also added. All changes will be implemented as of the close of 28 Feb 2025 (effective 03 Mar 2025). <\/p>\n\n\n\n
On the other hand, bulls attempted to gain momentum mid-week in anticipation of a 25 basis point (bp) rate cut by the Bangko Sentral Ng Pilipinas (BSP), bringing the local policy rate to 5.50%. However, in a widely unexpected move, BSP kept rates unchanged and adjusted their inflation forecast for 2025 to 3.5% from 3.4%.<\/p>\n\n\n\n
This week, we expect the bearish mood to persist as investors await developments on President Trump\u2019s foreign policies. The market will primarily take cues on the US economy from several Fed speeches and the FOMC minutes. On the local front, investors will also track the 2024 earnings releases of index heavyweights Ayala Land Inc. (ALI) and Metropolitan Bank and Trust Co. (MBT). Meanwhile, the appreciation of the Peso back to the PHP57.00 level could offer some support and stimulate foreign buying.<\/p>\n\n\n\n
Recommendation<\/strong><\/td>| Buy<\/td><\/tr> | 1-Year Target Price<\/strong><\/td> | PHP 12.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n | <\/div>\n\n\n\n MONDE\u2019s stock price has rebounded from its 54- week low of PHP6.63 and is currently exhibiting an upward trend. The counter is now trading above its 20-day and 50-day moving averages (MA), and seems poised to test the PHP8.45 resistance level. Momentum indicators suggest a bullish outlook, with the MACD line crossing above the signal line and gradually approaching into positive territory. Additionally, the RSI is trending upward while remaining in neutral territory, indicating strengthening bullish momentum.<\/p>\n\n\n\n Accumulating MONDE at current levels and sell on 28 Feb 2025 to capitalize on near-term swings. Take profits 15% above your average cost and set stop loss limits 8% below your average cost.<\/p>\n\n\n\n <\/div>\n\n\n\n 2. Robinsons Retail Holdings, Inc. (RRHI)<\/h3>\n\n\n\n
|