News Highlights: US equities pause for a breather (DJIA -91pts, Nasdaq -2pts) on mixed earnings results, as WTI crude falls below $70/bbl for the first time in more than three weeks. At the local front, bill on rice industry act filed & imported cheaper fuel being readied. Blue-chips led corporate headlines: SMPH is anchor tenant in GGDC’s Clark project; ALI sees P4bn sales from first phase of Avida Towers Verge; AC unit invests in health technology solutions.
Bourse recovered, PSEi @7,099: Sessions took its cue from Wall Street’s overnight rise (DJIA +547, Nasdaq Comp. +214 points), enabling the PSEi to breach an intra-day high of 7,140, before closing 112 points up at 7,099 (+1.6%). All sectors rose primed by mining/oil (+2.74%) & industrials (+2.7%). Actively-traded winners were: SMPH (+P0.50 at P34); ALI (+P0.60 at P40.80); BPI (+P1.95 at P82.95); MBT (+P1.65 at P67.25); & BDO (+P4.10 at P116.10). Turnover was P5bn, with gainers-losers at 119-71. Net foreign selling widened to P628mn (+180%).
Tight range seen: Local equities might trade within tight range as players digest the recent uptick & US equities’ latest pause. Select index stocks might still be in play, specifically those that have been dragged to extreme oversold bases. Others might heed for an expected cooling in consumer prices given measures readied on the fiscal side. Immediate support is 7,050, resistance 7,100-7,120.
Marts ended higher: Asian markets ended higher on Wednesday as Wall Street's rally overnight spilled over Asia thanks to a healthy round of earnings reports and a US announcement of trade talks with Japan, the EU and Britain helping sentiment.
US shares pause for breather: Mixed earnings results prompted players to cash-out on US equities, pulling DJIA -91 points, 25,706 (-0.36%), Nasdaq Comp. -2pts, 7,642 (-0.04%).
Crude sharply down: Oil ended below $70/bbl Wednesday after EIA reported 6.5 million-barrel weekly rise in U.S. crude stockpiles, vs forecast of 1.88mn barrels. West Texas Intermediate (WTI) dipped $2.26 to $69.95/barrel.
SMPH is anchor tenant in GGDC’s Clark project:
Dennis A. Uy’s Global Gateway Dev’t. Corp. (GGDC) signed a sublease for up to 10ha. inside Clark Freeport Zone with SM Prime Holdings, Inc. (SMPH). The project’s total size is at 177ha. GGDC’s parent is Udenna Dev’t., which plans to invest $6bn for Clark Global City.
P4bn sales from initial phase of Avida Towers Verge:
Ayala Land, Inc. (ALI) will spend P7.4bn for the initial phase of Avida Towers Verge in Mandaluyong City. The first tower will have 34 floors of 1,020 residential units plus 7 commercial units. Estimated sales is P4bn for units sizing 22-24sqm. priced as much as P4.4mn, 34-36sqm. at P7.7mn.
AC unit invests in health technology solutions:
Ayala Corp. (AC)’s Ayala Healthcare Holdings invested in AIDE, a home health application providing health services in patients’ homes that include medical consultations, nursing care, physical therapy, caregiving, lab extraction, among others. The firm is also on the lookout for emerging start-ups & entrepreneurs who can disrupt the healthcare industry.
AC Energy adds another customer for retail open access:
Ayala Corp. (AC)’s AC Energy signed up Plastmann Industrial Corp. for 1.7MW supply of retail electricity. This brought AC Energy’s retail supply to over 100MW. Plastmann is engaged in plastic products.
BPI prepares P15bn local bond float:
Bank of the Philippine Islands (BPI)’s board approved an initial P15bn bond float from its earlier approved P50bn peso bond & commercial paper (CP) program. Timing & details of the float will be determined subject to market conditions.
RCB’s ePiso will be rolled-out in 2019:
Rizal Commercial Banking Corp. (RCB) sees its digital currency, ePiso, to go on full rollout in 2019. The bank aims to partner with more businesses, with farmer suppliers already on-boarded.
PAL goes direct to the 'Big Apple':
PAL Holdings, Inc. (PAL) will start its 16-hour direct flight from MNL-New York starting 29 Oct. A350 aircraft will be used for this route, with plans to launch Seattle, Chicago & another in Western Europe.
IDC prepares as much as P3bn spending for provincial projects:
Italpinas Development Corp. (IDC) will be launching Primavera City in CDO, Misamis Oriental & Miramonti in Sto. Tomas, Batangas, with P2bn-P3bn set for expansion of these projects. IDC sold P400mn for Miramonti, or 45%, Primavera at 82% worth P672mn. Partial funding will come from the P500mn it will raise from the preferred share float.
Bill on rice industry act filed:
House Makabayan block filed HB8512, or ‘Rice Industry Dev’t. Act of 2018’ (RIDA). The bill provides P495bn budget for 3-year implementation that covers, among others, P310bn for NFA’s local procurement; P50bn farm inputs support. It also calls for protection of rice lands from land-use conversion.
Imported cheaper fuel being readied:
PNOC-Exploration Corp. (EC) will import fuel P5/liter cheaper vs. prevailing pump prices. The supplier remains unnamed as negotiations are ongoing. PNOC-EC chief Pedro Aquino said the initial plan is to import 50k MT of diesel costing P2bn.
Min. jeepney fare up this November:
LTFRB approved the petition to raise min. public fare for jeepneys to P10. Effectivity will be made 15 days after publication.
BSP head to take intermittent medical leaves:
BSP chief Espenilla’s medical leave has been extended until 26 Oct., & may take intermittent leaves after. Espenilla has been diagnosed with early-stage tongue cancer & underwent radiation therapy.