BDO profit hits ₱20 billion even as bank builds rainy-day fund

 

By James A. Loyola

Published Apr 25, 2026 03:26 pm

Nestor V. Tan, President and CEO of BDO Unibank, Inc.

BDO Unibank Inc., the country’s largest lender by assets, reported a two percent increase in first-quarter net income as double-digit loan growth across all market segments offset a decision to bolster its rainy-day reserves.

Net income for the Sy family-led bank rose to ₱20.1 billion in the three months ended March 31 from ₱19.7 billion a year earlier, according to a filing with the Philippine Stock Exchange on Friday, April 24.

The modest bottom-line growth reflects a more cautious stance by the lender, which increased its provisions as a preemptive measure against what it described as evolving geopolitical risks.

Despite the heightened provisioning, the bank’s core operations showed significant momentum. Net interest income climbed 11 percent during the period, underpinned by a 16 percent surge in gross customer loans, which reached ₱3.8 trillion. This expansion was broad-based, with the bank reporting double-digit growth in its corporate, middle-market, and consumer portfolios.

BDO’s deposit base remains a primary engine for its lending activities. Total deposits expanded 15 percent year-on-year, while the growth of low-cost current account and savings account (CASA) balances accelerated to seven percent.

The bank’s ability to maintain a steady flow of cheap funding has been critical in navigating a high-interest-rate environment that has pressured margins across the Southeast Asian banking sector.

Non-interest income, which includes fees and trading gains, rose six percent. A standout performer within this segment was the bank’s insurance operations, which saw a 27 percent jump in income. This diversified revenue stream helped propel the bank’s pre-provision operating profit to mid-teens growth, according to the disclosure.

Asset quality, a key metric for investors monitoring the health of the Philippine economy, continued to trend favorably. BDO’s non-performing loan (NPL) ratio improved to 1.68 percent from 1.77 percent in the same period last year. To insulate itself from potential defaults, the lender maintained an NPL coverage ratio of 132 percent.

The bank reported a return on average common equity (ROCE) of 12.8 percent for the quarter. Shareholders’ equity rose nine percent on the back of consistent earnings, pushing the book value per share up eight to ₱119.36. The bank’s Common Equity Tier 1 (CET1) ratio, a measure of financial strength, stood at 13.3 percent.

BDO management stated that the bank’s dominant market position and diversified franchise provide a buffer against a dynamic operating environment.

PSEi plunges below 5,900 as Middle East tensions intensify

 

By James A. Loyola

Published Mar 24, 2026 04:43 pm

The Philippine Stock Exchange index (PSEi) plunged to just below the 5,900 level on Monday, March 23, as oil prices continued to rise amid worsening conflict in the Middle East, with Iran keeping the Strait of Hormuz shut despite threats from the United States (US).

The main index fell 119.44 points, or 1.98 percent, to close at 5,899.18. The mining sector plummeted to lead all counters down.

Volume rose to 1.36 billion shares worth ₱8.1 billion. Losers beat gainers—167 to 46, with 58 holding their ground.

“The Philippine market ended significantly lower as ongoing conflict in the Middle East showed no signs of de-escalation, dampening investor sentiment,” said Regina Capital Development Corp. managing director Luis Limlingan.

He added that rising oil prices further weighed on the market, heightening concerns over inflation and input costs. As a result, cautious trading prevailed amid expectations of sustained price pressures and potential policy tightening.

Philstocks Financial Inc. research manager Japhet Tantiangco said the local market plunged as the further escalation of tensions between the US and Iran weighed on investors’ sentiment.

This comes as the two countries exchanged threats amid the US’ demand for the complete reopening of the Strait of Hormuz, which is crucial for global energy supply, as roughly 20 percent of the world’s oil passes through it.  

PSEi suffers deepest retreat in months on disappointing GDP data

 

By James A. Loyola

Published Jan 29, 2026 05:03 pm

Philippine stocks suffered their steepest decline in months, tracking a selloff that erased more than two percent of the benchmark index’s value after government data showed economic growth stumbled to a near five-year low.

The disappointing gross domestic product (GDP) figures triggered a broad retreat across most sectors as investors reassessed the country’s recovery trajectory amid high interest rates and sluggish state spending.

The Philippine Stock Exchange Index dropped 132.42 points, or 2.08 percent, to finish at 6,223.36 on Thursday, Jan. 29. While mining companies found a foothold on the back of rising bullion prices, the rally was insufficient to offset heavy losses in heavyweight banking and property stocks.

Market turnover was active, with 1.34 billion shares valued at ₱7.55 billion changing hands. Decliners dominated the session, outnumbering gainers 124 to 75, while 56 issues remained unchanged.

The selloff intensified after the Philippine Statistics Authority reported that the economy expanded by just three percent in the fourth quarter of 2025, a deceleration from the 3.9 percent growth recorded in the preceding three-month period. For the full year, GDP growth averaged 4.4 percent.

Luis Limlingan, managing director at Regina Capital Development Corp., noted that the PSEi ended lower amid strong, broad-based selling pressure after the figures failed to meet market consensus.

He added that the softer growth data raised immediate concerns over the near-term economic outlook, prompting a shift toward risk-off positioning.

The equity market also faced headwinds from a weakening local currency as Japhet Tantiangco, research manager at Philstocks Financial, said the market was weighed down by the depreciation of the peso following the United States Federal Reserve’s decision to maintain its current policy rates. 

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., meanwhile, characterized the three percent fourth-quarter growth as the slowest pace since the first quarter of 2021.

Excluding the pandemic-induced contraction of 2020, the full-year performance represents the weakest expansion for the Philippines since 2011.

Ricafort attributed the slowdown to a combination of internal and external pressures, ranging from reduced government infrastructure spending amid heightened scrutiny of flood-control projects to adverse weather and geopolitical risks that have dampened global trade.

Stocks drop as investors await GDP data, weigh risks

 

By James A. Loyola

Published Jan 23, 2026 04:24 pm

Local equities market declined as investors adopted defensive posture ahead of next week’s economic growth data, erasing previous gains in session characterized by thinner trading and political uncertainty.

The Philippine Stock Exchange index (PSEi)) fell 65.34 points, or 1.02 percent, to 6,333.26 on Friday, Jan. 23. The benchmark retreated for the fifth time in six trading days, testing the 6,300 support level as lenders led the drop, while mining stocks saw a modest recovery from prior losses.

Investor sentiment was weighed down by anticipation of fourth-quarter 2025 gross domestic product (GDP) figures due next week. Market participants are seeking clarity on the economy’s trajectory as the central bank monitors inflation and global interest rate paths.

“The local market dropped as investors took a cautious stance ahead of next week's release of our fourth quarter 2025 GDP data,” said Japhet Tantiangco, research manager at Philstocks Financial.

Political developments also filtered into the trading floor as Michael Ricafort, chief economist at Rizal Commercial Banking Corp., noted that recent impeachment complaints filed against President Marcos and Vice President Sara Duterte have contributed to the “political noise.”

These maneuvers could potentially distract the administration from delivering priority reforms and maintaining governance standards, complicating the outlook for debt management and broader economic initiatives.

Despite the day’s decline, some analysts view the movement as necessary cooling period following a sustained rally that began in late December.

“We still consider it a healthy correction after gaining for most trading days since December 22,” Ricafort said.

The retreat came even as the peso showed strength against the United States (US) dollar. Luis Limlingan, managing director at Regina Capital Development Corp., attributed the decoupling to profit-taking and a shift toward near-term consolidation.

Market breadth was negative, with 119 stocks declining compared to 86 that rose, while 59 remained unchanged. Turnover slowed to 758 million shares valued at ₱6.29 billion, a decrease that signals “defensive investor stance amid lingering uncertainties,” Limlingan said.

PSEi drops on Greenland tension, impeachment filing

By James A. Loyola

Published Jan 19, 2026 04:57 pm

The Philippine Stock Exchange index (PSEi) started the week lower as investors took profits from recent gains, as expected.

The main index dropped 26.89 points, or 0.42 percent, to close at 6,437.78 on Monday, Jan. 19. Banks led the retreat, although the services sector advanced, while the industrial sector held its ground.

Volume also decreased to 2.25 billion shares worth ₱5.19 billion. Losers outnumbered gainers—112 to 87, with 67 unchanged.

“The PSEi ended lower to start the week, weighed down by late-session selling. Profit-taking persisted as investors continued to lock in gains,” said Regina Capital Development Corp. managing director Luis Limlingan.

He noted that “market sentiment remained cautious, with the index still trading at overbought levels.”

Philstocks Financial Inc. research manager Japhet Tantiangco said, “The local market fell as investors booked gains on the final minutes of the trading day following a four-week rally.”

“Concerns over the United States’ (US) tariff threats to selected European countries to get Greenland also dampened sentiment. Finally, the peso’s weakness against the US dollar weighed on the market,” he added.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said the PSEi corrected slightly lower for the second straight trading day after the impeachment complaint filed versus President Ferdinand R. Marcos Jr. at the House of Representatives, while the exchange rate approached a record low level.

PSEi drops ahead of BBM's SONA, US tariff deadline

 

The PSEi dropped for the third-consecutive day as investors wait for President Ferdinand Marcos Jr.’s State of the Nation Address (SONA) and also due to the weaker peso.

The main index lost 33.43 points, or 0.52 percent, to close at 6,379.75. Miners led the retreat, while the services sector managed to advance. A total of 1.11 billion shares worth ₱6.61 billion changed hands, as losers outnumbered gainers—108 to 90, with 48 unchanged.

By James A. Loyola

Published Jul 28, 2025 04:42 pm

“Right now, investors are going to pay close attention to the SONA, particularly regarding which industries might receive more support from the government, face stricter regulation, and the overall direction of the local economy,” said Regina Capital Development Corp. Managing Director Luis Limlingan.

He added that, “Moreover, investors are still waiting on the PSEi rebalancing that might also affect price reactions on the market.”

Philstocks Financial Research Manager Japhet Tantiangco said, “The local market dropped as investors took a cautious stance while waiting for [the SONA]. The peso's pull back for the day also weighed on the local bourse.”

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael Ricafort said the PSEi declined as the Aug. 1, 2025, deadline for United States (US) President Donald Trump’s tariffs and trade negotiations draw closer, and also before the US Federal Reserve’s (Fed) rate-setting meeting and the latest US jobs data later this week.

PSEi dips as Washington hikes tariffs on Philippine goods

 

By James A. Loyola

Published Jul 10, 2025 04:58 pm

The Philippine Stock Exchange index (PSEi) closed lower on Thursday, July 10, after the United States (US) increased tariffs on goods from Manila.

The main index shed 41.14 points, or 0.63 percent, to settle at 6,463.20. Banks led the decline, while Services and Mining sectors saw strong gains.

Volume increased to 1.4 billion shares valued at P9.45 billion. Advancers still outnumbered decliners 107 to 85, with 55 issues unchanged.

“Philippine shares fell as investors remained on the sidelines due to renewed tariff threats, with markets declining further towards the close on Trump’s latest round of imposing new duties on imports,” said Luis Limlingan, Managing Director of Regina Capital Development Corporation.

The Philippines was among several countries impacted by the US' plan to impose a 20 percent tariff on exports, a notable increase from the 17 percent reciprocal rate announced in April.

Philstocks Financial Research Manager Japhet Tantiangco noted, “The PSEi closed down as investors took profits following a three-day rally.”

He added, “The local market’s sideways movement ended in negative territory, reflecting investors’ reaction to the US’ upward revision of its tariffs on Philippine exports.”

Rizal Commercial Banking Corporation Chief Economist Michael L. Ricafort stated that the PSEi corrected slightly lower after the higher tariff rates set by Trump. This could lead to slower demand for Philippine exports to the US, which accounted for 17 percent of the country's total exports in 2024.

Ricafort further commented, “The markets are still in a wait-and-see mode, anticipating whether Trump would be willing to compromise and settle for lower negotiated tariffs during the trade talks, given the TACO track record in recent months.”

He explained that “TACO” stands for “Trump Always Chickens Out,” referencing a pattern where Trump typically initiates with much higher tariffs as a negotiating tactic, then eventually settles for a significantly lower rate.

“Thus, there could be some volatility in the markets, but this is already partly priced in/expected, so it's not really as surprising anymore,” he noted.

PSEi rallies after peaceful elections, pause in US-China trade war

James A. Loyola

Published May 13, 2025 

The local stock rallied after the early release of results of a peaceful mid-term elections and a pause on the US-China trade war.

The main index jumped by 108.62 points or 1.68 percent to close at 6,566.82 as the Services sector lead the charge while Miners lagged behind as gold prices dropped. Volume was high at 1.15 billion shares worth P8.89 billion as gainers outnumbered losers 96 to 83 with 58 unchanged.

“Local shares kicked off the shortened trading week in the green, lifted by a broad rally in U.S. equities on Monday after a temporary U.S.-China tariff reduction deal eased trade tensions,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “The positive sentiment spilled over into Asian markets and was further supported by the peaceful conduct of Monday’s midterm elections.”

Chinabank Capital Corporation Managing Director Juan Paolo Colet said “The PSE benchmark index surged above the key resistance around 6,500 on strong volume as investors bought into positive news of a 90-day detente in the US-China trade war as well as the generally peaceful outcome of the Philippine midterm elections.”

“This is a good start to the shortened trading week, but sustaining this will now depend on the market’s reaction to upcoming data flows, including first quarter corporate earnings and the US April inflation print,” he noted.

Philstocks Financial Research Mamager Japhet Tantiangco said “The local market rose further upon the resumption of trading as investors took cues from Wall Street's rally overnight.

“This came as the US and China agreed to temporarily cut tariffs while continuing trade negotiations, raising hopes of a trade deal between the two economic superpowers which would benefit the global economy.”

GMA claims dominance in airwaves, online

 

BY JAMES A. LOYOLA

  

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Amid challenges faced by traditional media and competition from web-based services, local media giant GMA Network remains the undisputed leader on air and online for the full year 2023. 

Nielsen TV Audience Measurement (TAM) ratings data from January to December 2023 show that GMA – together with GTV and digital channels I Heart Movies, Heart of Asia, Pinoy Hits, and Hallypop – tallied a combined people net reach of 94 percent or a projected total of 73 million viewers in Total Philippines. 

The network’s main channel, GMA 7, remained the most dominant channel in Total Philippines, with a 93 percent net reach, or a projected total of 72 million viewers nationwide.

Meanwhile, GMA Network's flagship AM and FM radio stations maintained their top-ranking positions in 2023.

Super Radyo DZBB 594 recorded an audience share of 29.9 percent last year based on Nielsen Radio Audience Measurement (RAM) data, while closest competitor DZRH 666 tallied 28.9 percent. 

The AM station’s successful performance extended beyond Mega Manila, with Super Radyo Iloilo emerging as the number one AM station in 2023 with a total audience share of 46.9 percent. 

Barangay LS 97.1 Forever led other FM stations by a wide margin, averaging a 42.5 percent audience share against Love Radio 95.1’s 15.5 percent.

GMA’s FM stations ruled the airwaves outside Mega Manila as well. In Baguio, Barangay 92.7 (DWRA) recorded an audience share of 38 percent. 

Listeners to Barangay FM 93.5 (DWTL) in Dagupan likewise tallied an audience of 44.5 percent. In Western Visayas, Barangay 93.5 (DYMK) Iloilo drew a 70.5 percent audience share.

GMA currently operates 108 TV stations and 21 radio stations throughout the Philippines, with more to come in 2024. Further strengthening its presence across different regions in the country through GMA Regional TV, the Network launched GMA Ilocos Norte, its 12th regional station, in March 2023. 

Besides analog broadcast stations, the Network has also ventured into more digital and online platforms with the aim of making information even more accessible. 

Based on Tubular Labs data, social media video views for all GMA online properties drew billions of views from January to December 2023. 

Consolidated online viewership numbers reached 26.9 billion on Facebook and 8.9 billion on TikTok, as opposed to ABS-CBN’s pages, which got 20.8 billion views on Facebook and 7.9 billion on TikTok.

GMA Integrated News and GMA Public Affairs' social media pages drew billions of views from the same period. Online viewership numbers for these properties reached a total 21.9 billion views.

The umbrella account of GMA Integrated News alone drew 5.3 billion views, versus ABS-CBN News' 2.2 billion views. Meanwhile, GMA Public Affairs’ online platforms generated 13.9 billion views across popular social media platforms: 9.7 billion from Facebook, 2.5 billion from TikTok, and 1.7 billion from YouTube.

In total, GMA Integrated News and GMA Public Affairs properties boast a staggering following of over 220 million across social media platforms.

Stocks rise as window-dressing starts

BY JAMES A. LOYOLA

Aug 29, 2023 04:38 PM

  

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The local stock market rose in late trading as funds start window dressing for the month’s end.

The main index jumped 64.39 points or 1.05 percent to close at 6,225 as the Services sector led all indices in the advance. Volume rose to 395 million shares worth P5.63 billion but losers still beat gainers at 89 to 85 with 53 unchanged. 

“Philippine shares opened the week higher as trading gear up for window dressing,” said Regina Capital Development Corporation Managing Director Luis Limlingan. 

He noted that, “on the data front, investors await data on home prices, job openings and consumer confidence will also be due Tuesday morning in the US.”

Philstocks Financial Assistant Research Manager Claire Alviar said, “the local bourse gained due to last minute bargain hunting. Investors took the opportunity to buy around 6,150 support areas, following the sharp decline last week.”

“Moreover, positive cues from Wall Street overnight helped lift the sentiment in Asia, including in the Philippines,” she added.

Stocks jump on strong corporate earnings

BY JAMES A. LOYOLA

  

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The local stock market rose further as investors were cheered by early corporate earnings reports.

The main index jumped 71.59 points or 1.09 percent to close at 6,613.50 as Banks led the rally with only the Services sector in the red. Volume improved to 518 million shares worth P4.52 billion as gainers beat losers 99 to 81 with 44 unchanged.

“Philippine shares climbed higher again, buoyed by stronger-than-expected second quarter earnings results locally and regionally,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “The latter creating optimism for a soft landing for the economy.”

Philstocks Financial Research and Engagement Officer Mikhail Plopenio said “The local market climbed as investors took cues from Wall Street’s positive performance overnight amid optimism towards second quarter corporate results in the US. At home, the strong sscond quarter 2023 earnings report from BPI also sparked hopes towards the Philippine corporate sector’s earnings season.“

“Moreover, ADB’s projection that the Philippines will be the fastest growing economy for 2023 and 2024 in Southeast Asia boosted sentiment,” he noted.

Former rivals GMA, ABS-CBN jointly producing tv series

by James A. Loyola

GMA Network and ABS-CBN Corporation, formerly stiff rivals in the broadcasting industry, have sealed a new historic partnership for the co-production of a groundbreaking television series.

In a statement, the two multi-media giants said the romantic-drama series titled “Unbreak My Heart” will be filmed in Switzerland and will air on GMA this year.

It will also stream in 15 territories outside of the Philippines on Viu, PCCW’s leading pan-regional over-the-top video streaming service.

The partnership was made official during a contract signing held at ABS-CBN with top officials from the three companies led by GMA Senior Vice-President for Programming, Talent Management, Worldwide, and Support Groups Atty. Annette Gozon-Valdes, ABS-CBN Chief Operating Officer of Broadcast Cory Vidanes, and Viu Philippines Deputy Country Manager Vinchi Sy-Quia.

“It’s a first for Philippine TV and I’m sure it’s the audience that will be the winners in this collaboration. We’re very excited to be working with ABS-CBN on TV for the first time,” said Gozon.

Vidanes noted that, “This is a milestone in the industry. We’re thankful for this opportunity and we’re very happy to work with GMA to serve our audiences. We unite as one team. We never imagined that this was going to happen.”

“Today, we are able to proudly showcase that on our platform with premium Filipino content not just for Filipino audiences but also for global audiences to appreciate and enjoy. This is with a vision of bringing the best of the Filipino talent on-cam and off-cam to the world,” said Viu Philippines Content Partnerships Head Garlic Garcia.

Actress Jodi Sta. Maria said “This collaboration will really bring in opportunities not only to the networks, but for the people working in the network, for the people in the industry.”

“I’m really proud, honored, and excited to be part of this show which is history in the making since this is the first time that two network giants will be working with each other. Of course I’m also excited to be working with Jodi again and all the other people in the cast,” said actor Richard Yap. It will also stream in 15 territories outside of the Philippines on Viu, PCCW’s leading pan-regional over-the-top video streaming service.

The partnership was made official during a contract signing held at ABS-CBN with top officials from the three companies led by GMA Senior Vice-President for Programming, Talent Management, Worldwide, and Support Groups Atty. Annette Gozon-Valdes, ABS-CBN Chief Operating Officer of Broadcast Cory Vidanes, and Viu Philippines Deputy Country Manager Vinchi Sy-Quia.

It’s a first for Philippine TV and I’m sure it’s the audience that will be the winners in this collaboration. We’re very excited to be working with ABS-CBN on TV for the first time,” said Gozon.

Vdanes noted that, “This is a milestone in the industry. We’re thankful for this opportunity and we’re very happy to work with GMA to serve our audiences. We unite as one team. We never imagined that this was going to happen.”

“Today, we are able to proudly showcase that on our platform with premium Filipino content not just for Filipino audiences but also for global audiences to appreciate and enjoy. This is with a vision of bringing the best of the Filipino talent on-cam and off-cam to the world,” said Viu Philippines Content Partnerships Head Garlic Garcia.

Actress Jodi Sta. Maria said “This collaboration will really bring in opportunities not only to the networks, but for the people working in the network, for the people in the industry.”

“I’m really proud, honored, and excited to be part of this show which is history in the making since this is the first time that two network giants will be working with each other. Of course I’m also excited to be working with Jodi again and all the other people in the cast,” said actor Richard Yap.

PSEI rises above 7,000 level

by James A. Loyola

The local stock market breezed past the 7,000 resistance level as foreign funds bought Philippine shares on expectations of milder US rate hikes.

The main index rose 93.94 points or 1.35 percent to close at 7,045.48, after breaching 7,100 intraday, as Banks led the rally while the Services and Mining sectors yielded to profit taking. Volume was higher at 1.11 billion shares worth P10.23 billion as gainers beat losers 138 to 65 with 46 unchanged.  

“Philippine shares touched the 7,000 level after so many months as foreign funds continued to make bets into our economy, as conviction remained high that the country would be one of the best performers in 2023,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse surged amid expectation that the Federal Reserve will be less aggressive in its rate hikes following the cooled inflation in the US.”

She added that, “The strengthening of the peso against the US Dollar lifted the market as well. Moreover, foreigners helped lift the index, registering a net inflow of P1.08 billion.“

Stocks rally past the 6,600 level

by James A. Loyola

The local stock market finished strong after a sluggish start to end the week at the 6,600 level as foreign buying continued.

The main index rose 77.43 points or 1.17 percent to close at 6,606.94 with the Property sector leading the rally although the Industrial counter lagged behind. Volume grew to 489 million shares worth P7.14 billion as gainers topped losers 100 to 69 with 42 unchanged. 

PSE

“The Philippine market remained upbeat as investors continued to assess the latest meeting minutes and its implications,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that, “The latter signaled that the central bank is seeing progress in its fight against high inflation and is looking to slow the pace of rate hikes, meaning smaller ones through the end of this year and into 2023.”

Philstocks Financial Research Manager Japhet Tantiangco said “The local market extended its rally this Friday still due to expectations that the Federal Reserve and the Bangko Sentral ng Pilipinas will take a slower pace in their monetary tightening.”

He added that, “Investors also digested the Philippines’ October foreign portfolio investments which registered a net inflow of $83.44 million.”

Stocks rise as market turning bullish

by James A. Loyola, MB

The local stock market continued to rise on fresh corporate earnings reports as well as the easing of inflation rate in the US announced last week.

The main index added 67.99 points or 1.08 percent to close at 6,354.76 as Conglomerates led the advance although the Mining and Oil counter retreated. Volume improved to 634 million shares worth P5.65 billion as gainers beat losers 103 to 85 with 39 unchanged. 

PSE

“Philippine shares picked up from last week, continuing their ascent after stellar corporate earnings and growth data encouraged investors to buy into the markt,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

Philstocks Financial Assistant Research Manager Claire Alviar said “The PSEi continued its bullish momentum this Monday, amid good third-quarter earnings, so far, and positive spillover from Wall Street as investors cheered the slowdown of the October inflation rate.”

She noted that, “So far, the sentiment at home is turning bullish. Market participation has improved as well. Moreover, the PSEi’s short-term movement is an uptrend, with the 50-day exponential moving average pointing upwards already.”

Stocks to continue riding on higher earnings

by James A. Loyola, MB

The local stock market is seen to continue riding higher on positive corporate earnings reports as well as the firmer Peso although weak volume in past days call for caution.

“This week, the local market may extend its climb with anticipation of third quarter corporate earnings giving a boost to sentiment,” said Philstocks Research Manager Japhet Tantiangco. 

He added that, “The Peso’s position above the 58.00 per US Dollar level, if sustained may also strengthen the market’s positive momentum.” The local market has been on a positive momentum after touching its trough at 5,699.30 last October 3, 2022.

Tantiangco noted though that, “From October 3 to date, net value turnover has only been averaging P3.97 billion per day, below the year-to-date average of P5.99 billion, implying weak conviction in the market’s climb. Thus caution is still advised in our trades.”

This sentiment was also shared by 2TradeAsia.com which said that, “While the trek north of 6,000 was welcome, the market is left wanting of stronger impetus to carry it convincingly towards 6,500-6,700.” 

“Investors are also expected to look towards the S&P Global Philippines’ Manufacturing PMI, Inflation data, and foreign trade data for clues on the local economy,” said Tantiangco.

2TradeAsia.com said investor focus will be pulled in multiple directions, given macro events unfolding for the month.

“The US midterm elections on the 8th, while not groundbreaking, might cause some volatility especially if the US chambers split (i.e. delays in 2023 stimulus, etc.),” the brokerage said.

It added that, “On the 10th, third quarter GDP will be reported and, while expectations have been tempered (low to mid-6 percent), the print will give funds a bigger sense of the impact of policy tightening and will be a guide to better project the fourth quarter up to 2023.”

Meanwhile, 2TradeAsia.com said that, “in mid-November, another round of Fed rate hikes are anticipated (estimated at 75-bps); the BSP is expected to mirror the Fed on the 17th to protect the peso.” Thus, it advised investors to “Range-trade while funds seek inspiration, noting that intraday selling pressure makes settling for modest gains the more optimal play for now.”

For stock picks, Abacus Securities Corporation is looking at Puregold Price Club because “We are anticipating a stronger second half of 2022 for PGOLD with revenge spending and reopening theme still in play after consumers being locked in the pandemic for two years.” 

“We do acknowledge the challenges presented above (peso, inflation affecting consumer spending) which will eat into the company’s margins and profitability. However, we still expect numbers to remain strong and possibly go beyond management’s expectations of consolidated revenues growing 7 to 9 percent.” It added.

The brokerage noted that, “We also have mentioned prior our preference to remain defensive and be choosy in picking stocks. And PGOLD makes a case for this with the company’s resilience in its line of business on essentials and the stock currently trading at all-time low valuations… Accumulate.”

Abacus is also advising investors watch Wilcon Depot and buy its stock when the price weakens as it is one of the best performing index stocks since the start of 2020.

While its price-to-earnings ratio is the highest in the PSEi and it is the second most expensive home improvement play in the region, “Upgrades are imminent and this will help valuations but the stock will still be pricey.”

“We do believe the premium, especially over its regional peers, is partly justified by the very strong YTD results and expanding margins,’ said Abacus adding that, “we would prefer to wait for dips before buying.”

For its part, COL Financial said it is raising its fair value for Wilcon to P31.70 per share from P25.20 a share “as a result of the changes in our forecasts and after rolling over our estimates to 2023.”

“After factoring in our higher topline and gross margin assumptions, our net income forecasts for FY22 and FY23 increased by 6.2 percent and 6.0 percent, respectively,” it said but noted that, “Despite the upgrade in our estimates, we maintain our HOLD rating on the stock due to current valuations.”

PSEi back at 6,000 level on bargain hunting

by James A. Loyola, MB

The local stock market climbed back to the 6,000 level as investors picked up bargains in anticipation of upcoming economic data and corporate earnings reports.

The main index added 45.23 points or 0.76 percent to close at 6,028.79 as the Services sector led the advance while the Mining and Oil counter lagged behind. Volume was thin at 406 million shares worth P3.48 billion as gainers beat losers 91 to 76 with 55 unchanged. 

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“Philippine shares started the last week of October solidly, as investors stateside are going to have a handful of eco data to keep tabs on this week,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, these include “PMI data on Oct. 24, New Home sales for Sept. on Oct. 26, GDP and Durable Goods Orders print on Oct. 27, and Personal Income reading on Oct. 28.“

Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse went up amid bargain hunting while investors await the third-quarter earnings results. Moreover, the government’s announcement that it is prepared to defend the peso from falling to 60 levels against the US dollar boosted the sentiment.” 

She noted that, “Wall Street’s positive performance last Friday also influenced the market’s movement. However, market participation remains weak.”