COL Financial suggests buying banking and property stocks amid slower corporate earnings

COL Financial advises investors to buy banking and property stocks on dips, as these sectors defied generally disappointing corporate earnings in the second quarter.

The median earnings growth of publicly listed corporations covered by COL slowed to 3.1 percent in the second quarter from 6.4 percent in the first quarter.

Philippine banking stocks experienced a significant rise in the second quarter, with the sector showing a median earnings growth of 8.2 percent.

However, smaller banks performed better than the larger banks in terms of growth.

Concerns exist that bigger banks will suffer from lower net interest margins due to signs of falling interest rates.

Philippine National Bank (PNB) showed the most impressive performance with a 142.3% increase, followed by Asia United Bank Corp. (AUB) and China Banking Corp. (CBC).

Conversely, Philippine Trust Co. (PTC) saw a contraction in its stock value, while Union Bank of the Philippines (UBP) experienced a minor drop.

Analysts advise continued monitoring of the Bangko Sentral ng Pilipinas' (BSP) rate decisions and the US Federal Reserve's actions.