News Highlights: San Miguel Corp. (SMC)’s board approved the purchase of $650mn redeemable perpetual securities to be issued by SMC Global Power. BDO Unibank, Inc. (BDO) clarified that it has allotted P8.9bn for branch expansion & IT enhancements contrary to earlier reports of P50bn. PSE cleared Bank of the Philippine Islands (BPI)’s P50bn rights offer of 600mn shares. Megawide Construction Corp. (MWIDE) approved the change in its secondary purpose to include its engagement in allied construction & acquiring shares of corporations under this category. Jan. remittances stood at $2.4bn (+9.7%), which would help support growth this year.
Sellers pulled PSEi to 8,190: Bears prevailed Thursday, prompting local gauges to crack below the 8,200 psychological support zone. The PSEi ended 158 points lower at 8,190 (-2%), dragged by uncertainties on US’ trade tariff that could weigh on Asian exports. Property (-2.8%) & holdings (-1.9%) bore the brunt on P7.3bn turnover. ALI (-P1.15 at P40.30); MBT (-P0.50 at P96); BDO (-P4.60 at P145.40); BPI (-P0.50 at P114.70); & AC (-P32 at P1,006) led actively-traded shares. Overall breadth skewed towards pessimists, 118-92.
Sideways trend: Sessions might stay mixed, although technical buying is warranted following the recent weakness. Some fund managers might eye on large caps that have been irrationally bruised from the recent decline, especially those with good prospects for the year. The PSEi might test holding above 8,150, with possible resistance at 8,270-8,300.
Clawing back some ground: Several marts closed higher Thursday, gaining back from its early declines as cheap buying opportunities started to push back concerns over trade issues.
Mixed results. Shares were mixed in the US, with tech & industrial sectors gaining while consumer & energy fell ahead of the Fed meeting next week. DJIA +115pts, 24,873 (+05%), Nasdaq Comp. -15pts, 7,481 (-0.2%).
Ended higher: Oil prices ended higher Thursday for a second straight session, buoyed by signs of growing global crude demand, but concerns surrounding surging U.S. shale production kept gains in check. West Texas Intermediate (WTI) rose $0.28 to $61.19/barrel.
SMC updates SMC Global Power’s $650mn perp float:
San Miguel Corp. (SMC)’s board approved the purchase of $650mn redeemable perpetual securities to be issued by SMC Global Power. Proceeds will partly finance the purchase of Masinloc power assets.
BDO sets P8.9bn capex:
BDO Unibank, Inc. (BDO) clarified that it has allotted P8.9bn for branch expansion & IT enhancements contrary to earlier reports of P50bn.
BPI’s rights offer gets green light:
PSE cleared Bank of the Philippine Islands (BPI)’s P50bn rights offer of 600mn shares. Pricing will be made on 27 March. No entitlement ratio has been set yet.
MWIDE will engage in allied construction:
Megawide Construction Corp. (MWIDE) approved the change in its secondary purpose to include its engagement in allied construction & acquiring shares of corporations under this category.
Hotel101 in BGC launched:
DoubleDragon Properties Corp. (DD) aims to generate P3bn in sales from the sale of 609 rooms worth P4.95mn each of Hotel101 in BGC. Proceeds will finance construction slated to start within the year.
MWC buys into Thai water firm:
Manila Water Company, Inc. (MWC) bought 18.72% of Thailand’s Eastern Water Resources (EWR) last 14 March 2018 for THB5.23bn (approx. P8.6bn). EWR provides raw water & tap water since 1992 in Rayong, Chachoengsao & Chonburi, an industrial zone in Thailand.
ION restructures unit:
Ionics, Inc. (ION)’s board approved an equity restructuring for fully-owned Iomni Precision to wipe the latter’s deficit through: (1) reduction in authorised capital from P200mn to P60mn by reducing par value from P1 to P0.30/share.; (2) conversion of $250k advances to additional paid-in capital.
SSP refinances loan:
SFA Semicon Philippines Corp. (SSP)’s board approved $30mn inter-company loan from SFA Semicon Co. Ltd of South Korea that would partly finance capex & prepay its long-term loan with BDO.
TFC unit buys equity in property firm:
PTFC Redevelopment Corp. (TFC) notified the Exchange that Baesa Redevelopment Corp. (BRC) bought P60mn worth of 49k shares in Kombi Land (KLI), equivalent to 19.68% of KLI’s capital stock. KLI owns various commercial & industrial lots in Malvar & Lipa, Batangas.
FNI prepares property dividend:
Global Ferronickel Holdings, Inc. (FNI)’s board approved the declaration of property dividend of FNI treasury shares at 1 FNI treasury share for every 17 FNI common share held. Ex-date is 26 March, payment of which is subject to regulatory clearances.
Companies on ex-cash/rights today:
Metropolitan Bank & Trust Company (MBT) rights, 1:3.976@P75/share, offer run 22 March-04 April
Jan remittance up, Feb. was on net hot money outflow:
Jan. remittances stood at $2.4bn (+9.7%), which would help support growth this year. Meanwhile, BSP said Feb. net portfolio investments outflow was $545mn, reversing $162mn inflows in January.