News Highlights: On Wall Street, gains in energy firms offset weakness in tech shares. On the local front, MPI’s Metro Pacific Tollways (MPTC), bought 4.99% additional equity in PT Nusantara Infrastructure Tbk through PT Metro Pacific Tollways Indonesia (PT MPTI) while, Robinsons Land Corp. (RLC) intends to complete its 300-room resort hotel in Mactan, Cebu in 2019 under Dusit Thani brand. Meanwhile, Socioeconomic Planning chief Pernia said Pres. Duterte will be issuing an Exec. Order (EO) covering 9 measures to contain inflation.
Bourse weakened, PSEi @7,449: Players gave more weight on the peso’s volatile trend, prodding sellers to unload Wednesday. The PSEi fell 68 points at 7,449 (-0.92%) led by industrials (-1.8%) & financials (-1.42%). BDO (-P4 at P114); ALI (-P0.10 at P41.75); BPI (-P1.05 at P85.85); & AEV (-P3.40 at P47.60) topped actively-traded decliners, while GLO (+P60 at P2,180); AC (+P24.50 at P920); & MBT (+P1 at P70) defied the trend. Turnover remained at P5.54bn, with net foreign selling at P887mn. Gainers-losers scored 83-101.
Retest of 7,400 level, but with downward bias: Having broken past 7,500, some selling might resume today as the peso breached its 13-year low of P54.13:US$1 yesterday. There being no other new leads, attention will shift towards the BSPs policy meeting soon and its actions to arrest the peso's slide. On the flipside, participants may acknowledge Pres. Duterte's EO to manage inflation. Check on value plays with already bargain valuations. Continue to trade within range. Immediate support 7,400, secondary support 7,375, resistance 7,500.
Marts declined: Regional bourse slumped Wednesday as fears still linger on increasing trade tension between US and China as well as emerging-market turmoil. The benchmark MSCI Asia Pacific Index fell for a tenth consecutive day Wednesday bringing lost value to almost $700bn this year.
US equities gauge mixed: Gains in energy firms offset weakness in tech shares, after executives from the latter were asked to testify before the US Senate panel on consumer data privacy on 26 Sept. DJIA +27 points, 25,998 (+0.11%), Nasdaq Comp. -18pts, 7,954 (-0.23%).
Crude rallied: Oil prices rallied on Wednesday, following a drop in U.S. crude inventories and prospects of the loss of Iranian supply. West Texas Intermediate (WTI) climbed $1.12 to $70.37/barrel.
Indonesian tollway unit of MPI completes tender offer:
Metro Pacific Investments Corp. (MPI)’s Metro Pacific Tollways (MPTC), bought 4.99% additional equity in PT Nusantara Infrastructure Tbk through PT Metro Pacific Tollways Indonesia (PT MPTI). PT MPTI also completed the tender offer for 3.76bn PT Nusantara shares at IDR 211/share (Php0.79), for a total cost of P2.86bn. Given this, PT MPTI now owns 77.94% of PT Nusantara. Settlement of the mandatory tender offer is 10 Sept. 2018.
RLC’s Dusit Thani hotel in Cebu to be finished soon:
Robinsons Land Corp. (RLC) intends to complete its 300-room resort hotel in Mactan, Cebu in 2019 under Dusit Thani brand. The hotel will be at the center of its 10ha. AmiSa mixed-use project. Once finished, the hotel would add to RLC’s 211-room Summit Circle & 200-room Summit Galleria Cebu.
CPG-Mitsubishi teamed-up with Leechiu for office building project:
Century Properties Group, Inc. (CPG)’s Century City Dev’t. (CCDCII), signed an accord with Leechiu Property Consultants for the P4.5bn office building in Makati. CPG’s board recently approved the change of name of The Forbes Media Tower. to Century Diamond Tower. Leechiu will be the exclusive agent to market 58,618sqm. leasable space for the 35-storey premium office building. Century Diamond is owned by CPG subsidiary, Century City Dev’t., & Mitsubishi Corp., & will be completed in 2019.
CPG sees larger leasing revenues in 2020:
Century Properties Group, Inc. (CPG) aims to raise its completed gross floor area of 133k sqm. to 300k sqm. by 2020 once leasing projects are completed. The firm will also open an office tower in BGC via JV with Asian Carmakers Sept. 2018. Leasing revenues will potentially increase over 5x, from P342mn in 2017, to P1.5bn in 2020.
JFC to open overseas stores:
Jollibee Foods Corp. (JFC) will open its first stores in UK on 20 Oct.; Macau on 28 Sept.; & Manhattan in the next few months. In recap, JFC intends to offer 500 stores globally for 2018, 250-300 of which will be in the Phils.
ACR’s coal plant attracts proposals:
Alsons Consolidated Resources, Inc. (ACR)’s 105MW coal-fired plant attracted proposals from Dongfang Electric Int’l; Jurong Eng’g; Northeast No. 1 Electric Power Construction; Shandong Electric; & ThyssenKrupp Industries India. ACR’s current generating capacity in Mindanao is at 363MW.
MJC ups authorised capital, readies 50% stock dividend:
Manila Jockey Club, Inc. (MJC)’s board approved the increase in the firm’s authorised capital from P1bn to P2bn comprising 2bn shares at P1/share par value. MJC also cleared the issuance of 50% stock dividend.
ROX unit starts milling season:
Roxas Holdings, Inc. (ROX) notified the Exchange Central Azucarera de La Carlota (CACI) will start milling for crop year 2018-19 on 17 Sept. Canes will be accepted at CACI’s plant site & translating stations on 15 Sept.
Ex-date 14 Sept. 2018:
Shang Properties, Inc. (SHNG) P0.07, payable 28 Sept.
Upcoming Presidential EO seen to fight inflation:
Socioeconomic Planning chief Pernia said Pres. Duterte will be issuing an Exec. Order (EO) covering 9 measures to contain inflation. This includes among others, tighter watch on rice imports of NFA; enabling the Agri bureau to allow importation of fish; set-up of public markets where producers can sell directly to the end-user for chicken; importation of sugar.
eBanking & interbank transfers now mandatory:
BSP issued circular 2018-026, requiring all banks to have electronic banking & interbank transfers in place by 30 Nov. These services must be mounted on InstaPay & PESONet clearing houses with BSP.
3rd telco timeline on track:
DICT is on track with its timeline to naming the major players by Nov. for the 3rd telco slot. Bidding may be mid-Nov. & bidders will be given 45 days. The local firms that expressed interest are PTT, NOW, Converge ICT, TBGI, ECP & TierOne.