Commentary: PGOLD, URC, FB and DNL | Oct 7, 2021 | AP Securities

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Preliminary data from the Philippine Statistics Authority (PSA) showed the consumer price index at 4.8% in September, slowing from the 32- month high of 4.9% in August. Still, this was above the 2.3% print recorded in September 2020. – Business World

Our view: Despite surging oil prices (+81% YoY), the September CPI print eased by 10 bps MoM to 4.8%, settling at the lower end of BSP’s 4.8% to 5.6% forecast range. The more modest increase was attributable to the effect of EOs 135 and 133/134 amid the ongoing supply crunch, which pertained to lower tariffs on imported rice and pork, respectively. In light of this, we expect the BSP to consequently maintain the prevailing record-low rates until the demand side catches up within the coming months. In the meantime, we reiterate our picks in the consumer staples like PGOLD (TP: 50.00) and URC (TP: 160.00). For those with longer investment horizons, we think reopening theme plays like FB (TP: 95.00) and DNL (TP: 8.80) are likewise ripe for the picking.

SOURCEAP Securities, Inc.
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