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Eyes on property stocks, large caps

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By James A. Loyola

Stock market analysts see buying opportunities emerge after recent price drops in local equities and recommend selective buying of property stocks and emerging blue chip stocks.

“The property sector was the only index that was in the green this week as several companies posted tremendous growth in the first quarter. We continue to be bullish on property stocks as the real-estate sector proves to be very strong in terms of sales,” said Eagle Securities Research Head Chris Mangun.

For its part, Abacus Securities is recommending a buy on blue chips such as San Miguel Food and Beverage, Inc. because of its forecast P33-billion profit this year and optimism that price for its follow-on offering will be high.

Abacus said it is reiterating its buy recommendation on Semirara Mining and Power Corporation since its assets are undervalued and has higher margins than its peers and thus deserves a premium.

Also a recommended buy is Petron Corporation which is investing P15 billion for network expansion and improvement of its refinery operations as well as Cebu Pacific which reported a strong first quarter performance.

“Fundamental plays are still intact, even as the sell-down from some foreign funds left key large caps bruised. While pessimists may see more challenges ahead, buy opportunities are mined by the trained eye, especially with the general market’s shortsightedness,” said online brokerage 2TradeAsia.com.

Mangun added that, “as we go into the new trading week, based on the market sentiment, the index will continue to trade within this congestion area between the strong support at 7,500 and the resistance at 7,830.”

He noted though that, “if we see a pick-up in volume, the index may break above resistance and try for the next one at 8,000. A break of 8,000 will confirm a trend reversal which will bring investors back into this market.”

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