Philipines Market Insights 2018.4.13


News Highlights: Wall Street recovers (DJIA +293, Nasdaq +71) on strong earnings sentiment & Trump weighing joining TPP, while Asian shares perform mixed. Locally, World Bank sees steady growth for PH on robust demand & strong business confidence. RRHI may rebrand newly-acquired Rustan’s, while POPI eyes setting up of new industrial park in CDO, another in Central Luzon.





Shares advanced, PSEi @8,043. Local equities defied Wall Street’s slump, as buyers positioned to heed the mart’s oversold status. PSEi jumped 99 points at 8,043 (+1.25%) with all sectors green led by mining/oil (+3.25%) & property (+1.7%). Gainers among actively-traded shares were: BLOOM (+P0.84 at P12.84); AC (+P11 at P978); ALI (+P0.30 at P40.80); 7 SMPH (+P1.15 at P34.45). Advances-declines stood at 108-94, on P5.44bn turnover.
Follow-through buying to be tested. Local equities might take its cue from Wall Street’s recovery (DJIA +293pts), & also from yesterday’s trend. Skeptics may continue to heed for indications of possible supply pressure on intra-day rallies, especially on turnover that will support the ascent. Check on second- & third-tier bets with good liquidity windows. Immediate support is 8,020, resistance 8,130-8,150.


Mixed results. Asian marts ended mixed Thursday as retaliatory message from China’s Commerce Ministry caused pullbacks in Chinese marts, while energy stocks across the region climbed on higher oil prices.


Wall Street surged. Hopes for strong earnings season boosted US equities, including Pres. Trump’s suggestion that a military strike in Syria may not be imminent. Trump is also considering rejoining the Trans-Pacific partnership trade deal. DJIA +293ps, 24,482 (+1.2%), Nasdaq Comp. +71pts, 7,140 (+1%).


Oil prices pushed up. Tensions in the Middle East pressured geopolitical fear into markets, pushing prices up, amid OPEC report of non-OPEC members’ contribution offsetting decline in supply. West Texas Intermediate (WTI) inched up $0.29 to $67.11/barrel


Rebranding option considered:

Robinsons Retail Holdings, Inc. (RRHI)said Rustan Supercenters, Inc. (RSCI) has the option to re-brand ‘Rustans’ stores to other premium brand alternatives, in case the license accord is validly terminated by Rustan Commercial Corp.

MRC upgrades private placement price:

MRC Allied, Inc. (MRC) board approved the amendment of its private placement to 1.428bn common
shares (from 2.564bn) at an issue price of P0.70/share (from P0.39). Downpayment of 50% will be upon signing of the term sheet, the balance payable in 30 days. No other data was provided.

POPI eyes more industrial parks:

Prime Orion Philippines, Inc. (POPI) (64%-owned by ALI) is tapping industrial park opportunities starting with the 60-100ha. Cagayan de Oro lot near Laguindingan airport. This project will make available 42 parcels of land comprising smaller lot cuts of 7k sqm. vs. 1ha. in Luzon. The 2nd is in central Luzon, but no location was cited. POPI also upgraded the 14ha. Lepanto lot in Calamba, Laguna by creating leasable spaces. ALI is also keen to raise its stake in POPI if there is an opportunity.

SSP gets $30mn loan from parent firm:

SFA Semicon Philippines Corp. (SSP) has received US$30mn loan from parent firm, SFA Semicon Co.
Ltd. of South Korea last 11 April. The loan shall be repaid in full after 2 years & 4 mos. at 4.6% interest p.a. Proceeds will be used to partly finance SSP’s capex, refinance outstanding debt, among others.

TECH signs bridge financing:

Cirtek Holdings Philippines Corp. (TECH) board approved its notes facility arrangement with BPI & RCB, for $40mn bridge funding long-term credit facility. No other details were given.

PHEN ventures into fuel supply:

PHINMA Energy Corp. (PHEN) confirmed they’re venturing into fuel-supply business to serve the
requirements of its energy arm. This will be handled by PHEN’s One Subic Oil Distribution Corp., which will be developed to explore opportunities within the value chain. One Subic Oil will be operational within the year at 16mn laters capacity, after securing permits. PHEN’s fuel energy need for peaking plants is estimated at 50mn litters.

PHEN unit eyes LNG:

PHINMA Energy Corp. (PHEN)’s Phinma Petroleum & Geothermal (PPG) is developing liquefied natural gas (LNG) with 120MW plant in Argao, Cebu that will be completed 2022-23. The firm is in talks for LNG supply & delivery.

Hub expansion from PAL:

To meet its 17mn passenger target for 2018 on 100 target aircraft, PAL Holdings, Inc. (PAL) is expanding hubs in Davao, Clark & Cebu. Evaluation is ongoing for overseas routes from Davao, including flights to & from Palau where a group of businessmen is said to be talking to PAL. The plan also covers CEB-LAX service.

ROX sees reduced sugar output for 2018:

Roxas Holdings, Inc. (ROX) confirmed reports of flat income for 2018, or lower output, as higher sugar prices will be capped by 10% decline in output. ROX sees sugar output falling 8%-10% for 2018 from 3.46mn tons of cane. As a result, lower capex is seen at 2018 at P600mn.

IRC prepares capital increase:

IRC Properties, Inc. (IRC) board approved the increase in authorized capital from P1.5bn to P3bn to cover the private placement at P1.40/share.

LBC revisits share sale plan:

LBC Express Holdings, Inc. (LBC) Express refiled its proposed share sale plan for 69.101mn shares, of which 10mn are new common shares, 59.1mn secondary. Last April, PSE denied LBC’s application due to cases filed by PDIC against the Amanita Family’s other business units.


Steady growth for Phils. seen by WB:

WB sees 6.7% GDP growth for the Philippines for 2018 & 2019, highlighting robust local demand & strong business confidence.









Philipines Market Insights 2018.4.11


Philipines Market Insights 2018.4.16