The brokerage’s chief equity strategist April Lynn Tan said improving geopolitical conditions have reduced the need for an overly defensive portfolio, although she advised investors to keep some cash as high interest rates continue to offer attractive money market yields.
“I just want to tell investors to stay constructive on the Philippine market. This is despite the extremely volatile geopolitical environment,” she said during a recent market briefing.
Top stock picks
Tan said the recommendations balance income, value and growth catalysts, combining above-market dividend yields with company-specific drivers such as asset injections, earnings recoveries and potential value-unlocking events.
She also advised investors to accumulate quality names during market pullbacks instead of chasing rallies.
Her top stock picks and corresponding fair value targets are:
Technical game plan
Chief technical analyst Juanis Barredo, meanwhile, advised investors to treat the current market as a tactical trading window rather than chase rallies.
He said the PSE Index is facing near-term support at 6,500, adding that this “resuscitation rally” could power the index higher.
While pullbacks are expected, he said the PSEi could reach around 7,460 to 7,560 based on technical indicators.
Barredo also recommended accumulating resilient stocks such as Ayala Corp., Century Pacific Food, Aboitiz Equity Ventures, Globe, ICTSI, IMI and Megawide on pullbacks toward their 20-day and 50-day moving averages.
He sees trading opportunities in consolidating names including BDO, BPI, First Gen, Jollibee, Metrobank, Megaworld, Meralco and Monde Nissin.
For investors willing to take on more risk, he identified Ayala Land, Aboitiz Power, Apex Mining, Manila Water, SGP and SPNEC as potential mean-reversion plays once they establish a clear bottom.
—Edited by Miguel R. Camus
