Bank stocks seen beating market

MANILA  -Bank and financial stocks are seen yielding attractive returns in the local equities market, offering some hint of reprieve as Asian stock dips and economic jitters caused by global headwinds continue to persist.

This is according to the stock brokerage arm of BDO Unibank Inc., BDO Securities Inc., which also recommended stock investors to look at conglomerates, as well as firms in the tourism, power and industrial sectors.

The top picks for each sector are BPI and MBT for banks; SM, GTCAP and LTG for conglomerates; ICT, AP and ACEN for power and industrials, and BLOOM and CEB for tourism.

“It seems, for now, financials and banks are outperforming compared to the other markets, compared to the other companies. And this is really because investors know that banks are good primary beneficiaries of higher interest rates,” BDO Securities head of research Abigail Chiw said during a media roundtable on Thursday.

On March 23, the Monetary Board has raised the Bangko Sentral ng Pilipinas’ key policy rate by 25 basis points to 6.25 percent as inflation remained high at 8.6 percent in February

“We think macroeconomic uncertainties will continue to weigh on the local stock market. However, we think that for those who have a long-term view, it’s also a good opportunity to buy into stocks,” she said further.

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