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This week in the stock market

Chart of the week as of November 18, 2024

Converge ICT: Emerging hegemon

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Converge ICT (CNVRG) has sustained impressive income growth, outperforming market consensus. It continues to dominate in quarterly broadband net additions, with its year-to-date figures surpassing the combined total of its competitors by 69%.

Stock Watch: Converge ICT, AEV, Bloomberry

Makati cityscape at night with lights from buildings and cars.

For the second half of 2024, staying in liquid and quality names shall be the core strategy given the fragile but improving economic outlook. From a stock-picking standpoint, companies with robust economic moats, exposure to resilient segments of consumption, earnings visibility, and strong cash flow generation to combat high inflation and interest rates are strongly favored. Given recent developments, we favor banks, utilities, shipping, and select consumer names.

Stock	Call	Index Weight	Remarks
Converge ICT (CNVRG)	Overweight	1.0%	The telco company has sustained impressive income growth, outperforming market consensus. It continues to dominate in quarterly broadband net additions, with its year-to-date figures surpassing the combined total of its competitors by 69%.
Aboitiz Equity Ventures (AEV)	Neutral	2.4%	Core profit in 3Q 2024 rose 19% year-on-year, driven by gains in power generation, Coca-Cola earnings, and improved margins from Pilmico. Overall results met market expectations. Union Bank’s performance partially offset these gains, missing consensus due to elevated credit cost.
Bloomberry Resorts (BLOOM)	Underweight	0.6%	Gross gaming revenue grew due to the Solaire North ramp-up. However, demand at Solaire Entertainment City remains fragile, partly due to weak VIP demand and the absence of Chinese players after the POGO exodus. This could pose a lingering overhang on the stock.