By Madelaine B. Miraflor
As the market approaches the fourth quarter, stocks that will likely benefit from the “seasonal spending kick” at the latter part of the year would be consumer and banks.
Online brokerage 2TradeAsia.com said this week will still be about trailing industry developments.
“Last week, 2TradeAsia highlighted industry-related news that could perk up participation in the local bourse. We view this continuing this week, possibly with stronger emphasis on sectors that would benefit most ahead of the fourth quarter seasonal spending kick,” the brokerage said.
In its latest technical guide, COL Financial Group gave some consumer firms like Alliance Select Foods International, Puregold Price Club, Inc., Robinsons Retail Holdings, Inc., Wilcon Depot Inc., San Miguel Pure Foods, Co., and Vitarich Corp. a ‘buy’ recommendation.
“Several might be inclined to position ahead of the much-anticipated approval of the tax acceleration program of the administration, prior to its implementation in 2018,” 2TradeAsia further said, adding that investors must aim for modest gains while the benchmark index is within its sideways pattern.
It then pegged immediate support at 7,970 and resistance between 8,050 and 8,100.
In the meantime, the investing community will also wait for results from the United Nations (UN) Security Council meeting happening this week, specifically on country members’ vote on whether or not to support sanctions against North Korea’s unabated missile tests.
“So far, the US raised its call to ban crude oil shipments to NoKor, ban its textile exports, prohibit overseas employment and freeze the assets of Kim Jong Un,” 2TradeAsia.com said.