BROKER: AB Capital Securities
OPINION ISSUED ON: 14 Feb 2014
SUPPORT: 6,050
RESISTANCE: 6,185
ANALYSIS AND RECOMMENDATION
The PSEi is now trading at 16.45x 2014 P/E vs 13.31x peer median. We find premium valuations susceptible to externally driven selloffs and slower earnings growth.
We see full-year EPS growth at 7% in 2014 vs. 9% in 2013. We expect gains to be selective among equities given the slower EPS growth.
We think that consumer, gaming, and property stocks will continue to post robust headline profit growth. From a technical perspective, we think that the PSEi will have a short-term pullback. But this will be shallow as we expect the price to be supported by the 20- and 50-day Simple Moving Averages.
ACTION: We expect the market to trade sideways this week given that near-term catalysts will depend on global market sentiment. We would wait for pullbacks to attractive support levels before positioning on our preferred sectors for a better risk/reward tradeoff. Support is at 6,050 while resistance is at 6,185.
BROKER: F. Yap Securities / 2TradeAsia
OPINION ISSUED ON: 14 Feb 2014
SUPPORT: 6,100 / 6,050
RESISTANCE: 6,200 / 6,250
ANALYSIS AND RECOMMENDATION
Sessions could range-trade within 6,000-6,200 or trounce beyond the resistance to 6,400, bulk of which will depend on investors’optimism on economic growth & corporate earnings. Preference might stay specific to sectors with solid fundamentals. So far, consumer, services, gaming & infrastructu rerelated entities are getting attention due to growth prospects. The only uncertainty will be supply pressure that might be unleashed once upper trading angles are breached. Immediate support is 6,100 & 6,050, resistance at 6,200-6,250.
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