BUY
Term: Long
Target Price: PHP 162.30

Last Traded Price: PHP 123.90
P/E Ratio: 15.37x
P/B Ratio: 0.78x
Support: PHP 118.80
Resistance: PHP 133.20
MTD Performance: 1.56 %
YTD Performance: -7.54 %

  • Sentiment may be influenced by the increase in the NPL ratio in April, but fundamentally, SECB is one of the most stable and undervalued corporations.
  • After crossing above the 200-day EMA, the short-term trend is bullish.

The rise in the NPL ratio would have an impact on public perception of the banking industry. SECB’s major driver was the retail sector, thus with the adoption of stronger lockdown measures in April, it’s possible that SECB’s borrowers were impacted.

SECB, on the other hand, is one of the undervalued companies in terms of P/E and P/B ratios. We also believe that this stock’s profits per share will improve in tandem with the anticipated rebound in consumer and business confidence.

Chart-wise, support is pegged at P118.80 while resistance is at P133.20. Short-term trend is moving upward and currently trading above the 200-day EMA. The 50-day EMA, meanwhile, is pointing upward already. In order to continue this trend, it has to stay above the 200-day EMA. For traders, set a cut loss point, 5-7% below your acquisition price.

Material in this article is obtained from sources we believe to be reliable, but its reliability or precision cannot be guaranteed. This is for the sole purpose of providing details and does not provide an offer from us to buy or sell securities mentioned in this document.

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