Undervalued RP stocks show good opportunities

MANILA, Philippines - Philippine stock prices are expected to move sideways this year since the market will continue to consolidate, an analyst said. The trend represents attractive opportunities to investors of fundamentally sound stocks “that have experienced extreme valuations," April Tan, CitisecOnline research head said. These companies with strong balance sheets are posting weak earnings largely because of cyclical factors, Tan added. These stocks include Metrobank, Security Bank, Ayala Land, Robinsons Land, Globe, and Universal Robina Corp. “We have seen the bottom but recovery may take a while," Tan said. “It will continue to be an uphill battle for most of them." Besides pointing out that shares of Metrobank and Security Bank remain undervalued, Tan said that Ayala Land and Robinson’s Land still continue to maintain strong mall operations. Rental fees of mall operators don’t contract even during difficult times, she said, even as these companies took heavy hits owing to their exposure to housing. Meanwhile, sales of URC – which makes snack foods such as Chippy, among others – have remained strong. For its part, Globe Telecom Inc. is still a dominant player in the country’s telecommunications industry. “Stock selection is vital at this time. You must have the right stock to take advantage of the bear market," she said. Shares of Metrobank, the country’s largest lender, fell P0.25 to P22.75 during Tuesday’s trading at the Philippine Stock Exchange (PSE). Shares of Security Bank, the country’s 11th largest lender, rose P1.00 to P27.00. Shares of Ayala Land stayed at P6.00 each. Shares of Robinson’s Land Corp. fell P0.15 to P4.70. Shares of URC stayed unchanged at P7.30 each. Shares of Globe Telecom declined by P5.00 to P795. - GMANews.TV