It’s been a good start of the year!
The Philippine Stock Exchange Index advanced 14.07 points and closed at 4,215.21 today, 3 January 2011. Manny V. Pangilinan’s stocks led the most actively traded, MER and MPI with 7.46% and 6.68% price increase respectively!
PSEi 3-year chart
My Outlook for 2011
As requested by my readers, here’s my personal outlook for this year, 2011.
I’m still bullish on the Property Sector as more and more Filipino families invest in the property market. In addition, property firms are allocating most of their capital expenditures on new projects and project expansion for the next 3-5 years.
Megaworld Corp. (MEG), Ayala Land Inc (ALI), SM Devt. Corp.(SMDC) and Sta. Lucia Inc (SLI) are my choices.
Holding firms are also a good investment this year since most of these corporations will join the public-private partnership (PPP) program by the Philippine Government to boost the country’s infrastructure.
Metro Pacific Investments (MPI) and San Miguel Corp (SMC), and Ayala Corp (AC) will participate on this project.
DMCI Holdings (DMC) and Alliance Global Group (AGI) on the other hand will benefit from their Property firm’s price increase.
Based on analysts estimates compiled by Bloomberg data.
-DMCI (DMC), which has investments in energy, may gain as much as 15 % in the next 12 months
-Metro Pacific (MPI), which controls a water utility, may gain 40%
-Alliance Global (AGI), may rise 15%
-Ayala Land (ALI), the nation’s biggest builder, may advance 51%.
Besides Property sector/Holding Firms, my next pick is on Enery/Power Sector.
Manila Electric Company (MER), Aboitiz Power (AP) are on my list.
According to Platts, Manila Electric is included on top 250 Global Energy, top 215 Globally and top 59 in Asia.
“The number of southeast Asian companies in the top 250 rose from four to nine, two being added in Thailand, one in Indonesia and one in Malaysia, while the Philippines gained its first company in the top rank — the Manila Electric Co, the country’s largest distributor of electricity.”
TOP Industry Companies TOP Asia Companies
57. …
58. Santos Ltd ( 211)
59. Manila Electric Co ( 215)
60. Hokuriku Electric Power ( 223)
61. Hokkaido Electric Power Co ( 226)
62. Huadian Power Intl Corp ( 227)
63. …
More on Manila Electric Company’s profile
As the top gainer in Utility of 2010, Aboitiz Power (AP) might continue to leap above its current price having increased its generating capacity to 2,895 MegaWatts and having won most power plant auctions in 2009. Technically speaking, Aboitiz Power is still on an uptrend for the past 2 years without breaking its 65-day SMA.
US Stocks at 2 Year High:
As of this writing, the Stock indexes rise to start 2011 after strong manufacturing reports in US, Europe. The Dow Jones industrial average jumped 123 points, or 1.1 percent, to 11,700 in midday trading. The Standard and Poor’s 500 index gained 17, or 1.4 percent, to 1,275. The Nasdaq composite rose 48, or 1.8 percent, to 2,701.
More details here.
Stocks to watch for Tuesday’s trading (4 January 2011):
The Dow Jones’ positive results will cause the PSEi’s momentum continuation on Tuesday.
Stocks to watch are:
MPI/MER
FPH
SMC/SMB
NI
CYBR
AP
Hold on to your seats as the Philippine stock market will continue its bull run this year!
Good luck and God bless us all! 
