What Industries Are Seen to Do Well Under Duterte
Let’s admit it, Pres. Duterte is unlike any other president we’ve had. He’s unorthodox and it’s quite hard to read him. This “mystery” of his still cuses jitters among investors in the stock market. When he took over as the new president, a lot of people had their eyes locked on his economic policies (other than the drug war) only to get an answer “I’ll hire the best economists”.
With all the anxiety in the PSE lately, the question remains – what sectors are probable beneficiaries of the Duterte administration? By beneficiaries, I mean which companies will most likely benefit a lot from his administration.
First is obviously the steel industry. Even before he was elected as the president, then Davao mayor Duterte said that he will push for the revitalization of the steel industry. According to Duterte, industrialization is the key towards progress and the Philippines should realize its dream of having its own steel industry. Why steel? It’s simple. Steel is the mother of industrialization and is needed everywhere from power generation and distribution, infrastructure, transportation, vehicles and manufacturing. Reviving the steel industry would lead to more (a lot more) job openings and employment. At this point, the Philippines imports 80% of its steel. PHN and T are among the leading stocks in such industry. FNI is also a good pick after it partnered with Baiyin.
Second is the gaming industry. Majority of the high rollers in the Philippines are Chinese. With the relationship between the Philippines and China getting better, more and more tourists from China are expected to come. The tourism industry will get a big boost and that for sure will provide a boost for the gaming industry as well. Among the candidates for price rallies are BLOOM, MCP and PLC. Actually, these three have started to rise already.
Third is the property sector. A boost in tourism would mean more income for hotels and probably condo units. Inflow of tourists is seen to increase by 1 million tourists now that the Philippines and China improving ties.. Any company that has a huge exposure on hotels would benefit a lot from this one. If you have observed, companies are cramming to get into the hotel industry lately. This is possibly in anticipation of the upcoming increase in tourists coming. Hopefully BHI resolves its legal woes already. Resort-casinos are easy picks here.
The president still has a lot of work to do and for us to rush him may not be good for the country. Instead, it would be best to let him run it the way he intends to, in the pace he prefers, and take advantage of which sectors will benefit the most.
Article by Makoy Velasco, Certified Securities Representative
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