• Henry Sy Stocks to Carry the PSEi to 9,000?

    Henry Sy Stocks to Carry the PSEi to 9,000?

    Much has already happened since Henry Sy’s holding firm SM Investments Corporation (SM) sunk “unexpectedly” by 9.24% back in March 2017. Many (even news channels and brokerage firms) were actually clueless as to what caused the drop but as always, Trading Edge was there to explain (https://www.facebook.com/BloombergTVPh/videos/1928461877390566/) (http://business.inquirer.net/225894/sm-sell-off-drags-psei) that it was only a one-off event due to institutional passive portfolio rebalancing and the fact that local active fund managers were absent to absorb the outflow. Since that time, the stock has established a massive run to over Php1,000.00, giving it a gain of 73%+ in less than 10 months. With SM’s weight of ~13.38% in the index, it is therefore not surprising that the Philippine Stock Exchange Index or the PSEi has also been on a tear during the last 10 months. Another Henry Sy company, SM Prime Holdings, Inc. (SMPH) has likewise been on a major bull run, with a return of 81.87% in the same time frame. Henry’s flagship bank in BDO Unibank, Inc. (BDO) has also surged with a gain of 60.5% since March 2017. It is important to note that SMPH and BDO are also index heavyweights with a weight of 8.67% and 7.61%, respectively, in the PSEi. All in all, the three (3) Henry Sy companies have a combined weight of 29.66% or about a third of the entire domestic bluechip market. With all of them expected to extend their individual runs given their present uptrend, then they alone can carry the PSEi towards its consensus fundamental target of 9,110 (upgraded from 9,002).

    SM write-up from the Trading Edge Equity Advisor:

    January 2, 2018

    SM Investments Corporation (SM) appears to be on the verge of completing a continuation pattern in the form of an ascending triangle. Note that a likely rise over its key resistance at Php1,000.00 may lift it to an estimated goal of Php1,065.00. Meanwhile, its next psychological ‘magnet’ is pegged at Php1,100.00.

    SM write-up from the Trading Edge Equity Advisor:

    August 8, 2017

    SM Investments Corporation (SM) may likely continue to carry the entire index on its shoulders. As you can see, the stock has just established a fresh all-time closing at Php820.00. Given its break past its prior resistance at Php809.50, the stock may then likely extend its uptrend and reach for a minimum goal of Php859.00.

    SM write-up from the Trading Edge Equity Advisor:

    May 4, 2017

    We are reiterating our technical ‘buy’ rating on SM Investments Corporation (SM). In our Equity Advisor issue last April 9, we noted that the stock would likely extend its rise given its break above the resistance of a year-long consolidation at Php710.00. That break plus a recent move above another short run hurdle at Php740.00 places it at a striking distance from its original goal of Php800.00.

    SM write-up from the Trading Edge Equity Advisor:

    April 9, 2017

    SM Investments Corporation (SM) may likely continue to trade in the uncharted territory. As you can see, the stock has actually registered a new all-time high of Php755.00 following its breakout from a year-long consolidation. In any case, any pullback should be taken as a window to tactically pick up the stock as its prior break may lead it towards a measured goal of Php800.00.

    SM write-up from the Trading Edge Equity Advisor:

    March 12, 2017

    SM Investments Corporation (SM), after sliding by 9.24% last Friday, is seen to recover most if not all of its losses. This is so as the stock’s slide is only due to its weight reduction from the PSEi. As such, the outflows that it encountered were all but temporary. Having said that, SM is seen to rebound as soon as the new week opens. We firmly believe that the stock, perhaps inside just a few days, may recover back to Php655.00 to Php660.00.



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    *Consensus target price or average target price given by the major foreign and local brokers of various stocks on top of index names are available in our Equity Advisor!

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