Things may get a little rosy for the PSE this week as the chances of the US Fed interest rate hike this month looked a little dimmer after Fed Governor Laen Brainard wanted to see a stronger consumer spending and rising of inflation rate in the USA before doing another round of interest rate hike. She also cited that the USA is still vulnerable to economic weaknesses overseas.

Though it’s still unclear if Brainard’s challenge would make the US Fed change it’s mind, at least it’s a glimmer of hope that the cost of money won’t rise again this year. After all, global economy is not in good shape and the last thing we want is making borrowing money expensive.

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There is a good chance that the PSE would bounce today and even remain strong for the entirety of this 4-day trading week. As shown in the chart above, the chances of the PSE index bouncing back up is very good once it gets within the 7,400 to 7,575 range.

Obviously, it’s going to be a week of index stocks again. Speculative stocks may take a back seat for a while while the blues take the limelight.

Here are two stocks that are seen to do well (among others).

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ICT bottomed out at around P55. At this point, ICT is consolidating with a base at P78. Consider buying ICT at or close to P78. If this rallies again, it may send ICT all the way up to P102.

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SMPH’s price roughly retraced by 38.2% and so far, has bounced back up after hitting its previous high. Consider buying at P26.50. SMPH’s first half earnings was good (12% increase in net income) and is looking forward to borrow more money for its expansion.


Article by Makoy Velasco, Certified Securities Representative
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