Philipines Market Insights 2018.5.25


News Highlights: The BSP lowered reserve requirement by 1 percentage point, freeing-up P90bn available funds to the system. Overseas, Pres. Trump’s cancellation of his planned 12 June summit with North Korea’s Kim Jong Un & probe order on auto imports weighed on Wall Street.





Bourse gained on reserve requirement cut, PSEi @7,652: Buying resumed in local equities, aided by BSP’s move to lower reserve requirement. The PSEi rose 92 points at 7,652 (+1.2%) primed by financials (+2.2%) & holdings (+1.3%). Those that primed the ascent among actively-traded shares were BLOOM (+P0.06 at P11.86); SMPH (+P0.45 at P37.90); SM (+P13 at P863); MBT (+P120 at P82). Turnover remained slim at P4.86bn, with gainers-losers at 74-109.

Plus move from RR cut: Follow-through buying might aid local equities’ advance Friday, on the back of second-wind response to the local central bank’s 1 percentage-point cut in reserve requirement (RR). Financials could get the boost & property shares. Meanwhile, closer perspective might be on currencies, as the extra liquidity could fuel-up domestic currency supply. Stay alert for possible selling on strength. Immediate support is 7,630, resistance 7,680-7,700.


Mixed tone: Regional bourses were mixed Thursday, following a growing trade concerns, particularly on reports that US was weighing new tariffs of up to 25% on auto imports.


US shares weakened: Pres. Trump’s cancellation of his planned 12 June summit with North Korea’s Kim Jong Un & probe order on auto imports weighed on Wall Street. Energy shares were also lower given the decline in oil prices. DJIA -75 points, 24,811 (-0.3%), Nasdaq Comp. -1pt, 7,424 (-0.02%).


Oil ended lower: Oil prices dipped Thursday amid rising expectations for OPEC to boost production to make up for any supply shortfall from Venezuela and Iran. West Texas Intermediate (WTI) shed $1.13 to $70.71/barrel.


BDO adds Diners:

BDO Unibank, Inc. (BDO) added Diners Club Int’l together with Discover Financial Services to its credit card offerings. Diners has 28mn merchants globally.

TPVI of AP certified by PSALM:

Aboitiz Power Corp. (AP)’s Therma Power Visayas (TPVI) obtained certification from PSALM for the purchase of Naga City, Cebu’s power plant. The project is comprised of diesel & coal plants with combined capacity of 153.1MW.

ACR plans yen loan for hydro project:

Alsons Consolidated Resources, Inc. (ACR) plans to get 700mn yen from Japan’s gov’t. for its 15.1MW run-of-river hydro project in Sarangani. This will form part of the P3.9bn funding for the facility. Construction is slated to start 3Q18, completion 2H 2020.

Maynilad plans water treatment plant:

Maynilad Water (MWSI) plans to build its 4th water treatment plant in Putatan, Muntinlupa with the delay in Kaliwa Dam’s construction. The said dam is seen to provide 650mn liters per day (mld) to augment Angat’s 4,000mld & is est. to be completed in 2023.

PBC prepares P5bn LTNCD float:

Philippine Bank of Communications (PBC) filed its P5bn long-term negotiable certifies of time deposit (LTNCD) in one or more tranches subject to BSP approval. Proceeds will be used for generate corp. requirement, esp. long-term funding.

MARC updates buying & selling of shares:

Marcventures Holdings, Inc. (MARC) entered into a Subscription Agreement with its CEO, Isidro Alcantara, for the purchase of 45.7mn MARC shares at P1.64 apiece or P75mn. MARC then entered into an agreement with subsidiary Marcventures Mining (MMDC) for MARC’s purchase of 7.5mn shares (P10/share par value) for P75mn. Proceeds will be used by MMDC for operations & infra development.

DMPI IPO gets green light:

SEC cleared Del Monte Phils.’ (DMPI) planned P17.5bn IPO for 587.44mn shares up to P29.88 apiece. Bulk of proceeds will be used by its parent firm to prepay debts. Ex-date on 28 May 2018: Eagle Cement Corp. (EAGLE) P0.2310231027, payable 26 June. Macay Holdings, Inc. (MACAY) P0.12, TBA. Lopez Holdings Corp. (LPZ) P0.10, 16 June.


Reserve requirement cut:

BSP made another percentage point cut in bank reserves to 18%. This followed the same cut last 15 Feb. that took effect 02 Mar. The move would free-up P90bn in funds for lending & other uses.

Firm ventures into Sports City, Pacquiao participating:

Rev. Precrafted Properties tapped Sen. Pacquiao for the design of components of its Sports City development, featuring fabricated homes for the affordable market. The project will have sports & wellness facilities & boxing academies. The firm is also studying to develop lots owned by Pacquiao.









Philipines Market Insights 2018.5.23


Philipines Market Insights 2018.5.28