Investment Ideas: September 10, 2024 

Today, September 10, 2024, we offer some insights you can consider in your portfolio.

Here are some key highlights:

• Bond Market Overview: The bond market offers attractive yields for both dollar and peso-denominated securities. Notable among these are bonds from a Korean power company and a prominent US bank, with yields ranging from 4.147% to 4.617% for dollar bonds. Peso bonds show yields between 6.000% and 6.200%, providing options for various investment horizons.
• Stock Recommendations: Our equity analysis reveals a mixed bag of opportunities. We’re particularly bullish on a major conglomerate that stands to benefit from peso appreciation and presents an attractive valuation. However, we’re cautious on certain sectors, such as mining, where weak commodity prices pose challenges. We’ve also identified a holdings company that we believe is currently overvalued due to flat earnings across its subsidiaries.
• UITF Spotlight: We feature a peso-denominated equity unit paying fund with a high-dividend yield strategy. This fund, suitable for aggressive investors, focuses on PSE-listed stocks with strong dividend track records. It has demonstrated solid performance, with a year-to-date return of 20.27% as of September 5, 2024, and maintains a diversified sector allocation emphasizing services, holdings, and industrials.

Download our report here for details.