Philipines Market Insights 2018.4.2
News Highlights: GT Capital Holdings, Inc. (GTCAP) plans to spend P111.9bn in 2018, P63bn-P65bn of which will support MBT’s rights offering. First Gen Corp. (FGEN) plans building two 450MW, natural gas-fired plant in Sta. Maria & Saint Joseph, Batangas. San Miguel Pure Foods Company, Inc. (PF) stock symbol will be revised to San Miguel Food & Beverage or FB effective 05 April 2018. Meanwhile, BSP sees March inflation at 3.8%-4.6% as a result of higher power rates & petroleum products.
Mart ended lower, PSEi @7,979. Sessions closed lower, as participants prepared ahead of the
Lenten break. The PSEi finished 67 points down at 7,979 (-0.84%) as industrials (+0.33%) & financials’ (+0.15%) gain were offset by declines in holdings (-1.7%) & property (-0.7%). ALI (unch at P41.10); RRHI (-P0.60 at P89.30); AC (-P1 at P948); & SMPH (-P0.80 at P33.70) led actively traded shares. Turnover reached P7.8bn, with advances-declines at 113-83.
Post-Easter support. Sessions might start on subdued note, although most might take their cue from Wall Street’s overnight advance. Possibilities for the PSEi to cross above the 8,000 mark will continue to be re-tested, as fund managers reposition excess cash for their 2Q portfolio line-up. Position gradually on dips. Immediate support is 7,960, resistance 8,200-8,230.
Tracked Wall Street’s ascent. Asian shares rose Friday, tracking overnight strength from Wall Street, though many markets in the region were closed for Good Friday. Bounces back Thursday. After shedding losses for most of the week, Asian shares ended in the green Thursday after tech shares dragged U.S. stocks and oil prices dropped. Tech rout weigh on marts Wednesday. Technology stocks led the descent as marts close lower Wednesday, mirroring U.S. counterparts’ downward performances.
Closed for Good Friday. U.S. financial markets were closed for Good Friday. US equities advanced Thursday. Optimism on earnings results aided Wall Street’s advance, with DJIA +254pts, 24,103 (+1%), Nasdaq Comp. +114pts, 7,063 (+1.64%) US equities mixed Wednesday. DJIA -9pts, 23,848 (-0.04%) as Tesla’s 8% slump was offset by gains in consumer staples, real estate, telco & healthcare. Nasdaq Comp. -59pts, 6,949 (-0.85%) as Amazon.com fell 4%, after Pres. Trump hinted he wanted to rein in the firm.
Closed for Good Friday. Some commodity markets (crude oil, copper, among others), were closed for Good Friday. Oil ends higher Thursday. Oil prices ended higher Thursday, as concerns from the OPEC that members are considering action that could trigger higher prices pushed for limited movement. West Texas Intermediate (WTI) inched up $0.56 to $64.94/barrel. Oil prices lower Wednesday. Oil prices finished lower Wednesday, at the wake of data showing U.S. crude inventories were higher from last week as production rose. West Texas Intermediate (WTI) dipped $0.41 to $64.38/barrel.
Bulk of GTCAP capex will support MBT rights offer:
GT Capital Holdings, Inc. (GTCAP) plans to spend P111.9bn in 2018, P63bn-P65bn of which will support MBT’s rights offering. P20bn will be earmarked for potential investments, P9bn for Federal Land & P7.9bn for Pro-Friends. Toyota Motor will get P6.3bn.
New plants eyed by FGEN:
First Gen Corp. (FGEN) plans building two 450MW, natural gas-fired plant in Sta. Maria & Saint Joseph, Batangas. Completion date was not announced, but the plants would benefit from shared fuel delivery & fuel storage facilities.
Link between NLEx-SLEx to start soon:
NLEx will start constructing the P23bn linking North Luzon & South Luzon expressway by June-July. Startup works were delayed by the deliver of right-of-way. Completion is slated 2021 which will reduce travel time between NLEx & SLEx from 2 hours to 20 minutes.
PF will be FB, par value change from P10 to P1/share:
San Miguel Pure Foods Company, Inc. (PF) stock symbol will be revised to San Miguel Food & Beverage or FB effective 05 April 2018. Also, the firm’s par value will change from P10/ to P1/share on same date.
ABS plans 40% increase in TVplus box sale:
ABS-CBN Corp. (ABS) aims to sell at least 6mn TVplus boxes for 2018, from 4.3mn in 2017. ABS is also testing adding Wi-Fi services to the TVplus boxes.
PIZZA eyes double-digit topline growth:
Shakey's Pizza Asia Ventures, Inc. (PIZZA) aims to increase sales by double-digit for 2018 with the opening of 20 new stores outside Metro Manila. This would boost PIZZA’s store count to 228 by end of the year. Average investment ranges P18mn-P25mn/store.
EURO sells Batangas lot:
Euro-Med Laboratories Phil., Inc. (EURO) board approved the sale of 47,750sqm. of lot in Ibaan, Batangas to Soleil Capitale Corp. for P33.234mn. The lots are idle lands owned by the firm & not part of operations.
SBS considers lot in Mandaluyong:
SBS Philippines Corp. (SBS) will seek shareholders’ approval on its AGM in 22 June, for Cleon Phil. Holdings’ offer for sale of its 54,598sqm. lot in Bgys. Vergara & Namayan, Mandaluyong.
FOOD goes equity restructuring:
Alliance Select Foods International, Inc. (FOOD) board approved the change in its par value from P1/ to P0.50/share for its equity restructuring. This would reduce its authorised capital from P3bn to P1.5bn. The deficit that will be eliminated is at US$31.998mn.
Hybrid betting sites planned:
DFNN, Inc. (DFNN) plans to introduce hybrid of e-Bingo sites & more sports betting to boost its revenue contribution to Pagcor. No further details were given.
March inflation range estimated:
Bangko Sentral ng Pilipinas (BSP) sees March inflation at 3.8%-4.6% as a result of higher power rates & petroleum products. Feb. inflation was 4.5%.
More Panda bonds eyed:
With the successful float of RMB 1.46bn last month, the Finance bureau said more issuances of Panda bonds might be in place without citing details. The float fetched coupon of 5%, 35bps over
China’s benchmark of 4.65%.