Investors and traders can expect mounting speculation of market conditions in 2024 as the local market attempts a rally heading into the last month of 2023.
Online brokerage firm 2TradeAsia.com noted that "all eyes are now on drivers for 2024, and whether or not broader market forces will follow the beat of the same drum as in late 2022 to 2023."
It cited that global inflation expectations have cooled to under three percent for 2024 and 2025, return to growth of consumption markets may influence sector allocation, and baseline earnings per share (EPS) expectations for next year have been positive.
"If the stars align for December, ie. upcoming data releases at least track market expectations a retest of 6,500 by year-end is not impossible. However, volume remains less than ideal, which warrants some caution in the near time," it said.
2TradeAsia.com advised investors that "in a market that seeks more conviction, aim for high quality corporate stories in 2024, and accumulate gradually."
COL Financial Group Inc. is maintaining its "buy" rating for the Jollibee Foods Corporation's (JFC) stocks, stating its expectation of the firm's "continued growth should the international segment see sustained improvement in profitability, underpinned by JFC’s leadership in the Philippines."
JFC's local business posted a 13 percent same-store-sales growth (SSSG) during the third quarter of 2023, while it's North America operations posted six percent SSSG.
"Favorable seasonality during the fourth quarter should also buoy results in the near-term," said COL Financial.
It also boosted the "buy" rating of the Ayala Corporation's (AC) stocks, citing its "earnings have exceeded pre-pandemic level (to P31 billion in the first nine months of 2023 compared to P23.5 billion in the same period in 2019) and the nine-month period profit for 2023 reaching the full-year profit level of 2019 at P31.1 billion)."
"AC’s share price is still 18.5 percent below 2019 and 29.3 percent below 2018. We view the disconnect in share price performance and earnings performance as an opportunity for investors," it added.
Meanwhile, Abacus Securities Corporation highlighted GT Capital Holdings, noting its 18.6 percent improvement in October car sales year-on-year, and selling nearly 353,000 vehicles which is 26 percent higher year-to-date.
"If positive sequential trend continues, GTCAP is even more likely to beat full year consensus, making it one of our current favorites," said Abacus.