The Philippine Stock Exchange index (PSEi) may undergo a correction in the short-term before stocks see another leg up and close at 8,600 by the end of the year.
“PSEi may in the short term be put in corrective situation but should hold over 7,920-7,750,” said COL Financial chief technical analyst Juanis Barredo during the online brokerage firm’s mid-year market outlook for 2019.
“A rally wave will resurface after this correction opening a new opportunity to buy and eye 8,600+,” Barredo said.
Picking stocks at times like these may be a bit more difficult than when the market is growing steadily with little turbulence.
Barredo, however, recommends owning shares of 15 stocks for the current environment: AEV, AGI, AP, Cemex Holdings, Century Pacific Food,DMCI, DM Wenceslao,D&L, Globe, MacroAsia, Max’s, Metro Pacific Investments Corp., Puregold, Rizal Commercial Banking Corp. and Semirara Mining.
For solid-dividend players and fundamentally growth stocks, Barredo also identified 15 stocks to buy on a pullback. These are BDO, BPI, Metropolitan Bank (MBT), Security Bank (SECB), Ayala Land (ALI), Filinvest Land (FLI), Megaworld (MEG), Vista Land (VLL), Robinsons Land (RLC), EEI, FGEN, First Philippine Holdings, and GT Capital Holdings.