Philipines Market Insights 2018.7.18


News Highlights: U.S. equities advanced on Powell’s optimistic view on US economy + earnings results (DJIA +55pts, Nasdaq +49pts). Meanwhile at home, NAIA consortium might be granted original proponent status, according to Sec. Tugade. MBT cleared P11bn in loans to AC to support the latter’s capex. PIZZA opened Dubai store. PSB cleared to issue LTNCTDs.





MOC push aided PSEi’s advance to 7,381: Last-minute push carried gauges to positive terrain, although volume remained light on sluggish trades. After moving within 7,347- 7,382, the PSEi finished 12 points up at 7,381 (+0.17%) led by services (+0.98%) & industrials (+0.43%). Winners among actively-traded shares were: MBT (+P0.20 at P70); ALI (+P0.30 at P37.40); URC (+P2.10 at P130.80); & BDO (+P1.10 at P129). SECB (-P0.40 at P211.60); MWIDE (-P0.84 at P18.20); & AC (-P18.50 at P953) weakened. Gainerslosers were tight at 91-90, with turnover at P3.28bn. Net foreign selling stood at P481mn (+72% d-o-d).

Limited range: Another tight session might characterize Wednesday’s trade, with focus locked on turnover improvement & net foreign activity. Sector-specific interest is seen, especially those backed by good headlines to support intra-week movements ahead of the SONA on Monday. Continue to trade within range. Immediate support is 7,350, resistance 7,390-7,400.


Mixed results: Asian marts ended mixed Tuesday, with most major bourses in the red as energy shares plummeted across the region.


US equities advanced: Fed chief Powell’s optimistic view on the US economy & earnings results from listed shares aided Wall Street’s advance. DJIA +55 points, 25,119 (+0.22%), Nasdaq Comp.+49pts, 7,805 (+0.63%).


Oil finished lower: Oil closed slightly lower Tuesday after data from the American Petroleum Institute (API) showed +628k barrels in crude inventories in the week ending July 13, vs with analysts' expectations for a decrease of 3.6m barrels. West Texas Intermediate (WTI) slid $0.31 to $67.75/barrel.


AC gets P11bn loan from MBT:

Metropolitan Bank & Trust Company (MBT) cleared P11bn in loans to AC to support the latter’s capex. For 2018, AC planned P249bn capex for the expansion of ALI, GLO & MWC.

PIZZA opened Dubai store:

Shakey's Pizza Asia Ventures, Inc. (PIZZA) opened its first store in Dubai for franchisee Aljeel Capital, located opposite Burjuman Mall. The latest opening is the 2nd overseas store for PIZZA which ended with 212 local stores as of March.

PSB cleared to issue LTNCTDs:

Philippine Savings Bank (PSB) obtained approval from BSP for the issuance of up to P15bn of long-term negotiable certificates of time deposits (LTNCTDs). No other details were given.

Interest charges weighed on STI’s bottomline:

STI Education Systems Holdings, Inc. (STI) fiscal year ending March 2018 generated P3.08bn revenues (+5%) & gross profit of P2.07bn (+4%) on increased enrollees. Enrollees for the year stood at 105,031 (+1%). Net income was down 10% to P502.8mn due to interest charges.

X unit ventures into blockchain mart:

Xurpas Inc. (X)’s fully-owned ODX Pte Ltd. will use blockchain technology to provide free internet access to emerging market mobile consumers & will sell up to US$100mn worth of utility tokens.X will also launch other complementary projects such as: Alto (connects games to blockchain); Xonio (digital goods); AllCare (HR benefits on insurance, health).

TUGS awarded refloating contract:

Singapore-based Resolve Salvage & Fire (Asia) contracted Harbor Star Shipping Services, Inc. (TUGS) for the refloating of Teras Lyza that capsized last 05 June 2018. The vessel was valued at $56mn & salvaging will take 3 months. Last 2017, TUGS generated P70mn revenues from salvage business.

MARC sees 82% growth in mining income:

Marcventures Holdings, Inc. (MARC) confirmed generating net income of P200mn for 2018 (+82%), despite the 10% drop in shipment volume & higher costs & taxes. MARC already shifted producing high-grade saprolite ore with grades at 1.6%-1.8% Ni. Ni prices are also seen at $26-$42.


NAIA group to be granted original proponent status:

Trade Sec. Tugade said MIAA might grant original proponent status to NAIA Consortium for the operation of NAIA. The board will convene again this Thurs. to discuss the proposal. The members include Aboitiz InfraCapital, AC Infra Holdings, AGI, AEDC, FDC, JGS & MPI.

Cockers Association issued classificatory points:

Manila Cockers Club (MCCI) clarified: (1) off-cockpit betting stations (OCBS) are legal & sanctioned by the cockfighting law of 1974 & that Sol. Gen. Calida rendered a reappraised opinion last 31 May upholding the legality of OCBS operations; (2) Valenzuela LGU did not order the closure of OCBS & MCCI only operates in areas where they’re issued a permit; (3) MCCI diligently remits taxes to gov’t.; & (4) MCCI cannot be blamed on the decline of horse racing revenues.









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