REGINA Capital Development Corp. sees the Philippine Stock Exchange index trading between 7,380 and 7,500 this week, with a downward bias.
Regina Capital Head of Sales Luis Limlingan said the market is waiting for the outcome of the China and Greece situations. The longer the situation of the two countries persist, the longer it will take for the stock market to consolidate.
“The PSE index started the year at 7,300. In April it reached 8,100. Our target, by the end the year, is for it to hit 8,200. It’s doable,” he said.
Limlingan said, “The Greece debt crisis is an isolated case, while China is a trading partner of the Philippines. We’re hoping for spillover of the gambling business in China. Generally, the stock-market movement is driven by foreign outflows.”
He said they hope to attract international funds in Southeast Asia.
Top stock picks were SM Prime Holdings, Robinsons Land and Megaworld for consumer sector; and First Gen Corp. and Energy Development Corp. for the power sector.
For banks, they prefer Security Bank, which has a low non-performing loan.
BDO Unibank Inc. and Bank of the Philippine Islands were trading two times the price-to-book value, while Metrobank is trading 1.7 to 1.8 times.
“Banks are facing increased competition, which led to a decrease in net interest margin. It’s hard to replicate the trading gains they had in the previous years. We’re neutral on banks,” he told the BusinessMirror.
Regina Capital Development Corp. and MFT Group of Companies Inc. relaunched the Regina Online Investing (ROI) on Saturday.
ROI is an online stock-trading service for investors who are willing to invest and create their own stock portfolios. Through the ROI, investors can make their watchlist and monitor foreign flows.
ROI is one of the first to leverage on the user-friendly PSETradex platform, a Web-based trading-management system which allows users to trade shares of stocks, monitor their order status, and create and manage their own stock portfolio using either their computers or smartphones. It also boasts of providing dedicated managers for every client and services even on a weekend.
“In ROI, the options are tailored-fit to the specific needs of investors,” said Mica Tan, president and CFO of the MFT Group.