Investment Ideas: December 20, 2024 

Here is our report for today, December 20, 2024, with some insights into various investment opportunities.

Here are some key highlights:

• Bond Market Overview: Dollar-denominated bonds from various issuers are showing yields ranging from 5.065% to 5.476%. On the peso side, retail treasury bonds are displaying competitive yields between 5.875% to 5.980%, with longer-dated securities providing slightly better returns.
• Stock Recommendations: Analysis of key Philippine stocks has led to strategic rating changes across banking, property, and telecommunications sectors. A major bank has been upgraded to OVERWEIGHT based on potential benefits from higher interest rates, while a property developer has been downgraded to UNDERWEIGHT due to supply concerns in the Metro Manila market. A telecommunications company maintains a NEUTRAL rating amid uncertainties about growth drivers.
• Spotlight: Our analysis reveals interesting opportunities arising from the upcoming 2025 PSEi reconstitution. Historical patterns suggest that companies being removed from the index typically outperform newly added ones, creating potential tactical opportunities. We’ve identified promising prospects in the mining sector, driven by electric vehicle industry growth, and in the real estate investment trust space, where potential price adjustments could create attractive entry points for income-seeking investors.

Download our report here for details.