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This week in the stock market

Chart of the week as of April 7 2025

Meralco’s strong demand amid headwinds

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Manila Electric Co. provided consistent financial performance given its strategic expansion in power generation and a stable demand for electricity. The company has demonstrated resilience and adaptability, even amid external economic challenges, making it a reliable investment. Its ongoing infrastructure projects and regulatory support also position it well for long-term growth in the energy sector.

(Disclaimer: This is general investment information only and does not constitute an offer or guarantee, with all investment decisions made at your own risk. The bank takes no responsibility for any potential losses.)

Stock watch: Meralco, Globe, Alliance Global

Makati cityscape at night with lights from buildings and cars.

For the first half of 2025, staying in liquid and quality stock names shall be the core strategy given the fragile but improving economic outlook. From a stock picking standpoint, companies favored include those that could benefit from the current economic backdrop, has exposure to resilient consumer segments, earnings visibility, and strong cash flow generation capable of weathering fast inflation and higher interest rates. Given economic and financial-market developments, banks, utilities, shipping, and select consumer names are favored.

Stock	Call	Index Weight	Remarks
Manila Electric Company (MER)	Overweight	4.5%	The company posted strong earnings in its power generation and distribution business. Its earnings growth in 2025 is expected to remain strong. It stays in a defensive position, as it is relatively shielded from external risks like tariff wars, which attracts investors during market volatility.
Globe Telecom, Inc. (GLO)	Neutral	1.9%	Globe’s core telecom business is facing tougher competition, especially in broadband and mobile. However, its digital wallet Mynt (GCash) is still growing strongly. Mynt’s growth and possible dividends in May could help balance out risk.
Alliance Global Group, Inc. (AGI)	Underweight	0.4%	AGI’s business had a rough 2024, dealing with low demand, industry changes, and shirking profits. The company has yet to release full-year results or plans, which makes investors uncertain and cautious.