News Highlights: On Wall Street, US equities climbed higher following recovery in tech-related stocks as 1Q results beat estimates while regional bourses were mixed. On the local front, SM Prime Holdings, Inc. (SMPH) acquired 11ha. old Casino Filipino lot near NAIA for P6bn for the development of a residential hub while NEDA approved the Swiss challenge for SMC’s unsolicited proposal to build a P735.6bn aerotropolis in Bulacan.
PSEi advances to 7,617: After drifting within 7,529-7,558 for most of Thursday’s session, last-minute buying pushed local equities to higher terrain. The PSEi scored 59 points up at 7,617 (+0.8%) primed by property (+2%) & holdings (+1%). Among the gainers in actively-traded shares were: ALI (+P1.20 at P41); AC (+P21.50 at P930); SM (+P4 at P886.50); & SMPH (+P0.60 at P33.50). Turnover was light at P4.86bn, with gainers-losers at 112-89.
Follow-through buying to be monitored: Players might take their cue from Wall Street’s overnight climb, especially with the correction in 10-year Treasury bond yields below 3%. Momentum will be closely tracked, to verify if yesterday’s market-on-close (MoC) rally can be sustained. The focus might sway in favor of large-cap stocks, especially those seen to deliver good 1Q results. Immediate support is 7,600, resistance 7,650-7,680.
Bourses mixed: Asia-Pacific bourses were mixed, as China & HK fell even after additional tax-relief policies were made to support high-tech firms & startups.
Wall Street climbed: US equities climbed higher following recovery in tech-related stocks as 1Q results beat estimates. Also, yields on 10-year Treasuries closed below 3%. DJIA +238 points at 24,322 (+0.99%), Nasdaq Comp. +114pts, 7,118 (+1.64%).
Oil ended higher: Oil futures ended higher Thursday, despite a surprise increase in U.S. supplies, as focus shifted on the possibility that the U.S. will reimpose sanctions on Iran. West Texas Intermediate (WTI) inched up $0.14 to $68.19/barrel.
SMPH buys former casino lot:
SM Prime Holdings, Inc. (SMPH) acquired 11ha. old Casino Filipino lot near NAIA for P6bn, which will be transformed into a new residential hub. SMPH plans to launch the condo units at around P100k/sqm. SMPH is also finalizing its P20bn deal for 10ha. lot owned by Ashmore Group near Solaire Resort in Manila Bay.
MBT prepares max. of P25bn LTNCD:
Metropolitan Bank & Trust Company (MBT)’s board approved the issuance of up to P25bn LTNCD in one or more tranches of at least P2bn per tranche. The notes will carry a tenor of 5-1/2 to 10 years, subject to regulatory approval.
CLC signed shipbuilding contract with Kegoya:
Chelsea Logistics Holdings Corp. (CLC) signed a shipbuilding contract with Kegoya Dock Co. Ltd. for 2 brand-new RORO passenger ferry ships. The ferry ships will be built at Kegoya Dock’s shipyard at Hiroshima Prefecture, Japan & will be delivered to CLC on Oct. 2019 & April 2020, respectively.
CLC has new tanker to service local oil firms’ requirement:
Chelsea Logistics Holdings Corp. (CLC) accepted the delivery of its first medium-range (MR), 51,604DWT tanker last 25 April from Hyundai Mipo Dockyard Co. Ltd. of South Korea. The latest fleet boosted CLC’s capacity by 88% to 110,255DWT. The MR tanker will support logistics of local oil firms in the importation of petroleum products. It has multiple product segregation & can carry up to 53mn liters of various petroleum items.
MWC gets Bulacan water project award:
Manila Water Company, Inc. (MWC)’s Manila Water Phil. Ventures (MWPV) was awarded by Balagtas Water District (BWD) for the construction & operation of water supply system in Balagtas, Bulacan. MWPV & BWD shall form a JV firm that would handle the project at P400mn capex over a 25-year concession plan. Billed volume is at 22mn liters per day by year 2025.
CEB targets 12% passenger growth:
Cebu Air, Inc. (CEB) aims to service 22mn passengers for 2018 (+12%). CEB has 62 on its fleet & sees 3 more A321CEOs in the coming weeks.
JOH prepares tender offer plan:
Jolliville Holdings Corp. (JOH) intends to complete its tender offer on 30 April for all issued shares prior to 30 June 2018 in view of its agreement with UDEVO for the purchase of 62% of H2O at P4.30/share. The 30 June 2018 date is considered as the ‘long-stop’ date.
Companies with ex-dividend on April 30:
International Container Terminal Services, Inc. (ICT) P2.50, payable 11 May.
Bulacan int’l airport gets cleared for Swiss challenge:
NEDA approved the Swiss challenge for SMC’s unsolicited proposal to build a P735.6bn aerotropolis in Bulacan. The other projects that obtained NEDA’s clearance include DoTr’s P50bn Subic-Clark railway & P12.6bn O&M Clark Int’l. Airport, among others.
Credit limit on SPEs infra projects relaxed:
BSP approved separate credit limits for firms involved in infra projects of gov’t. that will operate on stand-alone basis. This would classify such firms as ‘social purpose entities’. The current single borrowers’ limit (SBL) is at 25% of a bank’s net worth.