MANILA, Philippines – With a positive outlook for the stock market in 2014, a financial expert expects more investors to put their money into equities.
“Rates are rising and we will see investors putting money into equities away from fixed income (instruments),” said Michael Angelo Oyson, chief executive and managing director at BPI Securities on ANC’s “On The Money.”
Oyson said that to pick winners in the Philippine stock market, it is crucial to find the right themes and valuations.
He suggests crating a portfolio with different stock picks, ranging from stable firms to growers.
Oyson said one of his top stock picks for 2014 is Philippine Long Distance Telephone Company (PLDT) for its income, dividends and stability.
He also advised buying shares of growing companies such as Puregold, listed as PGOLD at the Philippine Stock Exchange.
The other picks of Oyson in 2014 are Universal Robina Corp., D&L Industries Inc., International Container Terminal Services Inc., Manila Water Co., Energy Development Corp., DMCI, Megaworld, Vista Land, EEI Corp., and Megawide Construction.
“Even if the index goes sideways, you have to go to companies that will do very well and will show earnings growth irrespective of whether funds will come into the Philippines or not,” he said.
Oyson noted that the global market will see a “synchronized global growth for the first time in many years.”
He said, however, that while countries like Korea, Taiwan, Thailand, Singapore will benefit, the global economic trends in 2014 will not be friendly to the Philippine market.
“The liquidity is not coming as strong as in the last 3 years. But you can still make money in a very flattish PSE index,” he said.