Philipines Market Insights 2018.6.19
News Highlights: Continued concerns on the US-China trade spat weighed on Wall Street, pulling gauges lower. Energy shares climbed on volatile oil prices, ahead of the week’s OPEC meeting. On the local front, April remittances grew 12.7% to $2.347bn, reversing March’s -9.8% while The bureau of Info & Communication Technology (DICT) said the terms of reference (TOR) for the selection of the 3rd telco player was not approved during their meeting last 15 June.
Heavy selling weighed on bourse, PSEi @7,414: Local shares finished red, as fund managers turned wary on the US-China trade tiff plus uncertainties on the local central bank’s policy move. The PSEi ended 115 points down at 7,414 (-1.53%) led by financials (-2%) & holdings (-1.8%). ALI (-P0.55 at P38.60); BDO (-P2 at P134); MBT (-P1.90 at P72.85); & SM (-P3.50 at P899) led actively-traded decliners. Turnover reached P6.5bn, as losers swamped gainers, 161-44.
Waiting for the dust to settle: Investors might remain at bay, to see if the bourse has already absorbed the selling pressure lately. Uncertainties on local monetary policy makers’ move on interest rates & the peso’s weakness vis-a-vis the greenback might run high on the monitor list. Hunt for bargains & monitor potential accumulation on lows. Support range is 7,280-7,300, resistance 7,400.
Regional beatdown: Asian stocks ended lower Monday as renewed fears to rising trade tensions between the U.S. and China resurface.
US shares weaker: Continued concerns on the US-China trade spat weighed on Wall Street, pulling gauges lower. Energy shares climbed on volatile oil prices, ahead of the week’s OPEC meeting. DJIA -103 points, 24,987 (-0.4%), Nasdaq Comp. +0.6pt, 7,747 (+0.01%).
Oil ended higher: Oil prices ended higher on Monday, as traders were fixated on the escalating trade tensions between the U.S. and China. West Texas Intermediate (WTI) inched up $0.79 to $65.85/barrel.
TEL opens Voyager partnership:
PLDT Inc. (TEL) is open to partner for Voyager Innovations (VI) after China’s multinational investment holding firm, Tencent Holdings, did not provide word on the partnership. Meanwhile, GLO teamed-up with Ant Financial Services, an affiliate of Jack Ma’s Alibaba Group, for Globe Fintech Innovations (Mynt).
BDO partners with Japanese bank:
BDO Unibank, Inc. (BDO) said Japan’s 3rd biggest regional bank, Bank of Fukuoka Ltd. (BoF), selected BDO to be its partner bank in the Phils. BoF has 170 branches in Dalian, Shanghai, HK, Taipei, Bangkok, Singapore, Ho Chi Minh & New York.
MPI unit bought Cavite lot from ProFriends:
Metro Pacific Investments Corp. (MPI)’s MetroPac Movers (MMI) entered an agreement for the purchase of 2ha. from ProFriends in Lancaster Estate, Cavite. The lot will be transformed by MMI into a distribution facility for logistics business.
FGEN gets board clearance on buyback extension & preferred redemption:
First Gen Corp. (FGEN)’s board approved its share buyback of up to 300mn common shares from 15 June 2018, to 14 June 2020. FGEN will also repurchase up to P10bn Series G preferred within the said period. Lastly, FGEN will redeem Series F preferred on 25 July in cash at P100/share redemption value.
MWC to collect FCDA for July:
Manila Water Company, Inc. (MWC) will effect P1.58/cubic meter (cu.m.) foreign currency differential adjustment (FCDA) effective 01 July 2018. The FCDA will have no impact on MWC’s net income.
MWC gets another concession in Pangasinan:
Manila Water Company, Inc. (MWC)’s fully-owned Manila Water Phil. Ventures (MWPV) received a notice to proceed for Sta. Barbara, Pangasinan’s water supply project. This project is adjacent to MWPV’s Calasiao concession with est. billed volume of 16.6MLD within the 25-year franchise. The P730mn project will be operational 2019.
WLCON goes for store expansion:
Wilcon Depot, Inc. (WLCON) aims to open 9 stores to bring its network to 65 this year. The goal is to open 29 new stores by 2021, 16 of which will be in Luzon. Each store costs P180mn-P250mn, including inventory. WLCON will also launch its e-commerce platform by yearend.
MRC eyes powergen in LNG:
MRC Allied, Inc. (MRC) is looking at participating in the power generation component of the planned LNG facility with a foreign partner. In recap, MRC signed MoU with China Energy Eng’g. Corp (CEEC) for the possibility of investing in LNG in the Phils.
ECP converts P30mn unissued common to preferred shares:
EasyCall Communications Philippines, Inc. (ECP)’s board approved the change in its Articles of Incorporation for the conversion of P30mn common shares from its unissued capital into P30mn preferred shares. The move would require shareholders’ consent on 19 July 2018.
Ex-date on 20 June 2018:
Pryce Corp. (PPC) P0.20, payable 19 July
April remittance advanced:
April remittances grew 12.7% to $2.347bn, reversing March’s -9.8%. This brought the 4-month remittance to $9.4bn (+3.5%).
No TOR yet for 3rd telco bidding:
The bureau of Info & Communication Technology (DICT) said the terms of reference (TOR) for the selection of the 3rd telco player was not approved during their meeting last 15 June. No reason & new timeline were cited.
PNOC-EC studies Malampaya takeover:
PNOC-EC is looking on the option of taking over Malampaya once its contract expires in 2024. The firm would need to determine if the project will be commercially viable as additional fuel source.