A re-balancing in the global MSCI index is also likely to dampen local trading, but the market is expected to recover after a new government is elected next month, Papa Securities chief equity analyst Ramon Kabigting said.
The benchmark index would recover to "as much as 7,800 as early as June," he said. It closed 77.90 points or 1.06 percent lower to 7,243.40 on Monday.
Kabigting's stock picks include Metro Pacific Investments Corporation, DMCI and Vista Land & Lifescapes.
"I'm big on infra because the budget there is tremendous at five percent of GDP (gross domestic product)... it's a very strong game," he said.
Metro Pacific could also benefit from having a new leader, who would most likely approach the negotiating table again to sort regulatory problems, he said.
Kabigting said he believed negotiations among oil-producing nations in Doha over the weekend, which failed to reach an agreement on production caps, was doomed from the start citing long-running tensions between Saudi and Iran.
Oil prices at $40 or even $30 per barrel should still be manageable for both overseas Filipino workers in the Middle East and their employers, but a drop to $20 per barrel would be worrisome, he said.
source: www.abs-cbnnews.com
