Duterte agenda lifts infra, tourism as top stock picks

CEBU, Philippines - Publicly-listed companies engaged in infrastructure and tourism are likely to benefit from the current administration’s focus on rural development.

COL Financial head for research April Lynn Tan advised equity investors that, aside from buying shares from consistent top performing companies, the top picks in the market today include those in the construction and tourism-related businesses.

"Infrastructure will do good," Tan said banking on the firm thrust of the Duterte government in fixing or establishing infrastructure projects across the country like airport, seaports, farm-to-market roads, among others.

Tourism related businesses are also seen to rake in more revenues, not only with the consistent upswing of tourist arrivals in the country, but also with Duterte's firm directive of spreading rural development.

This administration's pronouncement and thrust in boosting rural development signals positive impact of good tourism opportunities in the rural areas, the reason why big companies are also positioning now to invest on facilities in yet-to-be popular tourism destinations around the country.

According to Tan, listed conglomerates are looking at expanding their tourism subsidiaries like hotel projects outside Manila.

Moreover, the planned reduction of taxes could boost consumer related businesses as this will allow companies to provide more jobs, expanding further the purchasing power of Pinoys.

"Everybody loves the Filipino consumer story," Tan said.

On the other hand, Miguel Ararao, vice president for Philippine Equity, said that while experts have their own projections of the market route in medium or short term, newbie equity investors should be always on their toes in sensing the market's movement, specifically every move of their chosen companies they are investing in.

Ararao said playing in the stock market only becomes a gamble if an investor will rely decisions on rumors, he said stock market investors should instead read and monitor consistently. (FREEMAN)