Philipines Market Insights 2018.11.27



News Highlights: The country’s deficit widened in October, bringing the 10-month balance to P438bn (+87%). Meanwhile, Phil. Reclamation Authority (PRA) & NEDA signed a circular that would strictly require NEDA’s consent for reclamation projects.





Bourse gained, PSEi @7,397: Local equities ended in the positive territory Monday, as players arenow starting to accumulate leading to mart’s consecutive gains. Despite absence of fresh leads,PSEi managed to gain 57 points led by Mining and Oil (+3.35%), Holdings (+1.26%) and Services(+1.19%). Key index movers were led by ICT (+P3.55 at P98.00), MBT (+P2.15 at P74.25), ALI (unch. at P41.50), SMPH (+P0.75 at P34.35), and BDO (unch. at P128.00), on P6.88bn turnover. Gainers edged out losers, 106-74, with net foreign outflows at P631.89mn.

Technical pause: Much-needed technical breathers might soon set in, in the absence of new leads at home & abroad. Second-tiers & index followers may set price actions for sequel plays. Trade a range. Immediate support is 7,350, resistance 7,400.


Ended higher: Most of Asian stock markets ended higher Wednesday a recovery following Friday’s U.S. selloff and another huge plunge for oil.


US shares gained: U.S. stocks closed higher Monday behind retail shares’ rally on expectations of strong sales. DJIA +354 points, 24,640 (+1.46), Nasdaq Comp. +142 points, 7,081 (+2.06%).


Crude gained: Crude futures rose ahead of the meeting between Russia & Saudi Aravia, prior to 06 Dec. OPEC meeting. West Texas Intermediate (WTI) rose $1.21 to $51.63/barrel.


TEL gets IFC investing in Voyager, TEL invests in Multisys:

PLDT Inc. (TEL) said IFC & IFC Emerging Asia Fund will invest $40mn in Voyager Innovations to promote financial inclusion. TEL’s ownership in Voyager would be lowered to below 50% after the deal is closed before end-2018. Also, TEL signed an investment agreement for 45.73% ownership in Phil. software dev’t. & IT firm, Multisys Technologies Corp. worth P1.6bn.

Water JV unit of AEV to start Davao City ops in 2021:

Aboitiz Equity Ventures, Inc. (AEV)’s JV firm, Apo Agua Infrastructura (AAI), with J.V. Angeles Construction, started the 3-year P12.6bn bulk water supply project in Davao City. Commercial operations will begin 1H 2021 where over 300mn liters/day of safe water will be provided.

AEV renews share buyback plan:

Aboitiz Equity Ventures, Inc. (AEV)’s board renewed the firm’s interest to repurchase its own shares using internally-generated cash, that may also include AP & UBP. No other details have been drawn up yet.

UBP notes yield 7.061%:

Union Bank of the Philippines, Inc. (UBP) priced its P10.5bn 2-year note float at 7.061% per annum, to be paid quarterly. PDEx listing will be on 07 Dec.

ICT adds to share repurchase plan:

International Container Terminal Services, Inc. (ICT) will repurchase an additional 30mn ICT shares via open market. No other details were given.

CHP unit made a drawdown on credit line:

Cemex Holdings Philippines, Inc. (CHP)’s Solid Cement availed of a subordinated revolving credit facility from Cemex Asia B.V. worth $75mn. Proceeds will be used for gen. corporate requirements, including refinancing of exiting debt & funding of construction & installation of 1.5mn MT integrated cement line in Antipolo City. Solid made an initial drawdown of $40.7mn.


10-month budget gap +87%:

BTr said the budget deficit widened to almost P60bn in October (+175%), as public spending grew 35% vs. 20% growth in revenues. This brought 10-month budget deficit to P438bn (+87%).

Reclamation rule compliance tightened:

Phil. Reclamation Authority (PRA) & NEDA signed a circular that strictly enforces EO146, that delegates to NEDA approval of reclamation projects. The aim is to improve compliance to rules & prevent indiscriminate illegal reclamation activities that lack prior approval from NEDA’s board.










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