News Highlights: Rizal Commercial Banking Corporation (RCBCEO Gil Buenaventura, is aiming for 12% growth in net income & 15% expansion in lending operations for 2018. Robinsons Retail Holdings, Inc. (RRHI) bought 20% of Taste Central Curators, Inc., operator of BeautyMNL e‐commerce site last 13 Dec. Meanwhile, Philippines AirAsia moved its planned listing to 2H18, to raise up to $250mn to expand its facilities. Members of Congress also approved the request of President Duterte to extend the declaration of martial law in Mindanao until Dec 31, 2018. The Senate voted 14-4 while the House voted 226-‐23 in favor In all, 240 members of Congress voted to approve the extension while 27 voted against.
Mart gained, PSEi @ 8,360: Mart saw minimal gains on thin trade yesterday as investors stood on the sidelines, awaiting the outcome of the Fed Reserve policy meeting and the ratification of the proposed tax bill. Services (+1.04%) and Mining and Oil (+1.40%) led gains, while Property (0.28%) was on red territory. Among actively traded shares were: SM (‐P15.00 at P975.00), URC (+P6.00 at P150.00), ALI (‐P0.20 at P43.95), BDO (+P0.50 at P153.50), and AC (‐P5.00 at P1,020.00), on 6.3bn turnover. Gainers outpaced losers, 97-96, with net foreign selling at P156.89mn.
Might trade higher: Mart might trade higher today following the Fed's decision to raise interest rates by 25bps to 1.25% before the year ends while our local central bank maintains stable policy. Immediate support 8,270, resistance 8,450.
Shares broadly higher: Markets in Asia-Pacific were mixed, with Japan losing ground and China and Hong Kong rallying after another record close for the Dow Jones and S&P 500 overnight.
Shares mixed: US stocks closed mixed, with S&P dragged by last-minute profit-taking on banking shares. The Fed raised interest rates 25bps to 1.25% & sees 3 more rate hikes in 2018 & 2019 until 2.8% is reached. US GDP seen growing 2.5% for 2017 (vs earlier forecast of 2.1%) & slow to 2.1% in 2019.
Prices lower: Oil prices fell for a second‐straight session on Wednesday, settling at their lowest level in a week. A bigger-than‐expected weekly rise in U.S. supplies of gasoline, along with another climb in U.S. crude production to a record weekly level, pressured prices. West Texas Intermediate (WTI) shed $0.54 to $56.60/barrel.
RCB targets 12% growth in 2018:
Rizal Commercial Banking Corporation (RCB) CEO Gil Buenaventura, is aiming for 12% growth in net income &15% expansion in lending operations for 2018.
RRHI buys 20% of Taste Central Curators:
Robinsons Retail Holdings, Inc. (RRHI) bought 20% of Taste Central Curators, Inc., operator of BeautyMNL e‐commerce site last 13 Dec. The move would expand & strengthen RRHI’s presence in the beauty format & e‐commerce space.
PNX eyes wider market share in LPG:
Phoenix Petroleum Philippines, Inc. (PNX) targets to widen its market share in LPG from the current 6%, specifically in Luzon. PNX already placed an order for 650,000 cylinders of LPG slated for delivery in 2018.
PSALM forfeits FDC’s P400mn performance bond:
Power Sector Assets and Liabilities Management (PSALM) Corp. forfeited Filinvest Development Corporation (FDC) Misamis Power’s P400mn performance bond after rescinding the Independent Power Producer Administrator (IPPA) agreement for the energy capacity of Mindanao Geothermal Power Plants 1&2. Meanwhile, PSALM also terminated its IPPA with Phinma Energy (PHEN) on alleged default as administrator of Unified Leyte (ULGPP). In recap, after the winning bid was announced, super typhoon Yolanda hit Region 8 last 08 Nov. 2013, resulting in extensive damage to ULGPP. PHEN & FDC Misamis were awarded strips of energy with associated 40MW capacity at a bid price of P4.6629/kWh.
Satin & Siao buys 65.92% of LMG’s capital stock:
Dominic L. Satin & Robinson Siao bought 127.6mn LMG shares, covering 65.92% of the firm’s capital stock. The buyers also confirmed no shares were tendered based on the tender offer made by the buyers.
Congress approves 1-yr extension of martial law in Mindanao:
Members of Congress approved the request of President Duterte to extend the declaration of martial law in Mindanao until Dec 31, 2018. The Senate voted 14-4 while the House voted 226-23 in favor In all, 240 members of Congress voted to approve the extension while 27 voted against.
Dennis Uy open to list his other companies:
Dennis Uy is open to list the companies under his ownership over the next couple of years. Uy declined to identify these firms. In recap, Uy owns holding firm Udenna Corp. which bought into Enderun Colleges, FamilyMart & real estate, among others. Uy also obtained a gaming license for Emerald Resort & Casino in Cebu.
AirAsia moves listing plan to 2H18:
Philippines AirAsia moved its planned listing to 2H18, to raise up to $250mn to expand its facilities. The airline firm sees doubling revenues next year from P12bn estimate for 2017.