Philipines Market Insights 2018.12.19


News Highlights: Boeing and FAANG shares towed Wall Street benchmarks higher (DJIA +82pts, Nasdaq 30pts). At home, no new MPSAs in mining yet. Index members led corporate headlines: GLO gets loan from CHIB; AGI will continue to expand core operations; DMC sets Paranaque project launch.





Mart retreated, PSEi @7,420: Caution was a tall order Tuesday, as buyers opted to remain at bay given Wall Street’s decline. The PSEi finished 100 points lower at 7,420 (-1.3%), primed by financials (-2%) & holdings’ (-2%) descent. SM (-P20 at P920); BDO (-P4.30 at P125.50); & AEV (-P3.25 at P51.65) led index movers’ decliners, while GTCAP (+P23 at P943); MER (+P3 at P389); & JFC (+P1.20 at P301.20) rose. Turnover was P5.9bn, with losers outstripping winners, 124-73. Net foreign selling stood at P651mn.
Mixed trades: Sessions might be mixed, as some fund managers weigh the possible outcome of the Fed’s policy meeting. Buy side investors are likely to take on yesterday’s dip as opportunity to position selectively. Meanwhile, second-tier shares might be in play, specifically those with sequel stories to unravel. Immediate support is 7,400, resistance 7,450-7,480.


Regional marts dropped: Asian equities tracked Wall Street’s overnight descent, with sentiment still dampened by a possibility of a December Fed rate hike.


US gauges up: Shares rose led by Boeing & internet momentum stocks (Facebook, Apple, Amazon, Netflix, Google or FAANG). Trades were relatively volatile, as Democrats rejected McConnell’s spending bill proposal that might force several gov’t. agencies to shutdown. DJIA +82 points, 23,675 (+0.35%), Nasdaq Comp. +30pts, 6,783 (+0.45%).


Crude plummeted: WTI fell $3.79 to $46.09/barrel (-7.6%) on high inventories & expectations of record production from US & Russia.


GLO gets loan from CHIB:

GLO signed a P5bn term loan with CHIB, to partly finance capex & gen. corp. requirements. No other data was provided.

AGI will continue to expand core operations:

AGI plans to build more townships in 2019. For RWM, Sheraton & Okura will be launched next year, Ritz Carlton in 2020. Emperador meanwhile, will introduce more products, McDonalds will have 50 new stores.

DMC sets Paranaque project launch:

DMC’s DMCI Project Developers, Inc. will launch The Atherton condo in Paranaque City Jan. 2019. Atherton will have the 14-storey Almond with 206 units on sale from the total 318 units. The project is located on 1.7ha. lot along Dr. A. Santos Ave. (formerly Sucat Road).

CPG’s ACC is 75% leased-out:

The 21-storey Asian Century Centre (ACC) in BGC is 75% leased out, with NLA at 29,628sqm. The P1.6bn ACC tower’s lease rate is P1,200-P1,400/sqm. plus P190 monthly assoc. dues. CPG aims to have 300k sqm. gross floor area for leasing once all projects are completed in 2020.

MRC plans early 2019 share float:

MRC will proceed early 2019 its planned P1bn share sale for renewable energy projects. The earlier plan called for the issuance of 1.4bn common shares at P0.70/share via private placement. The planned float was stalled due to SEC’s questions on the use of proceeds.

FNI updates ore reserves:

FNI said Cagdianao’s proven & probable ore reserves rose 21% to 43.8mn WMT as of 20 Oct. 2018 based on Phil. Mineral Reporting Code (PMRC) standards. No other details were given.


No new MPSAs in mining yet:

MICC deferred its recommendation covering moratorium on new mineral agreements until the bill that overhaul’s the mining industry’s fiscal regime has been finished. DoF said TRAIN only raised excise taxes on mineral products, but did not incorporate royalty, windfall & profit taxes, incentives & revenue-sharing schemes. MICC will also start its 2nd review on 15 remaining mining firms that were part of the 41 mines initially reviewed by DENR.









Philipines Market Insights 2018.12.13


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