Last week’s failed attempts to topple the current administration provided a perfect window of opportunity for bargain hunters, says AB Capital Securities.

Steel nerved investors who braved the correction during the height of coup attempts were rewarded last week.

"Thanks to an anticipated lifting of the state of emergency on Friday as the Phisix climbed 65 points over last week to close at 2,130, 3 percent higher from the previous 2,069 level," says AB Capital.

Several mass actions that coincided with the 20-year anniversary of the EDSA revolution resulted in a state of emergency declaration.

"Fears of instability however were taken as an opportunity to buy into blue chips, which continue to thrive through political turmoil given their industry dominance. Fast recoveries were seen in PLDT, the Ayala companies (AC and ALI) and the Sy Group (SM, BDO), companies that have huge cash to encompass any prolonged crisis."

PLDT’s announcement of record earnings last Monday afternoon helped drive up market sentiment for the whole week.

AB Capital Securities says PLDT’s profits were boosted by foreign currency and derivative gains, exclusive of which resulted in core profits increasing by a more realistic 9 percent to P31 billion.

"We continue to like TEL as a core holding given undemanding valuations (10.8x PER) with prospects of improving yield based on management’s commitment to increase payout from 40 to 50 percent of core earnings."

AB Capital also expects PLDT’s earnings to be muted this year given their guidance on selected financial items.