By JAMES A. LOYOLA
While investors continue to worry over Taal Volcano and its impact on the economy, most eyes will be waiting for fourth quarter Philippine gross domestic product (GDP) figures which will be announced on Thursday.
“Philstocks forecasts fourth quarter GDP to fall at 6.4 percent. If achieved… this will give us a full year growth of 5.9 percent. Now, investors will be looking more into whether the pace of growth is picking up,” said Philstocks Financial Senior Research Analyst Japhet Tantiangco.
He noted that, “if GDP growth meets our projection or if at least grows faster than the third quarter figure, then we may end next week in the green.”
From Monday to Wednesday, Tantiangco said there may be bargain hunting since a lot of stocks remain at attractive levels.
“The local bourse is also expected to take cues from global developments primarily Wall Street amid its corporate earnings season,” he added.
Online brokerage firm 2Tradeasia said “Taal's incident may have taken some aback, yet it is worthy to note (that) the Philippines managed to survive this onslaught. This should come to fore when the dust settles, and prod investors to start repositioning on Filipinos who have gone through the path of recovery.”
It added that, “The list of attractive companies has already expanded and it only takes a matter of time before these take notice. Position gradually on dips and hold.”
Speaking of dips, top online broker COL Financial is recommending a buy for Maynilad Water Services Inc. shareholders Metro Pacific Investments Corporation and DMCI Holdings despite the political pressure the utility is facing.
COL said both firms are now “massively undervalued despite dimmer outlook for Maynilad.” This is based on the value and outlook for the two firms’ other businesses even if Maynilad is to be considered worthless.
Abacus Securities Corporation is rating Bloomberry a buy based on earnings reports of Okada Manila which, together with BLOOM’s momentum from the third quarter, “reinforces our case that the company will also post strong fourth quarter metrics and carry this over into 2020.”
COL is also recommending a buy for telecommunications firms PLDT and Globe Telecom despite threats posed by a third player which is seen to face delays in the start of its operations while PLDT and Globe are seen to grow revenues this year.
The brokerage also favors Megaworld and Robinsons Land among property firm this year due to their significant leasing businesses which will ride on growth in the offshore gaming industry as well as the positive consumer outlook which should boost mall sales.