Philippines Market Insights 2017.1.6


News Highlights: Accendo Commercial Corp. would be expanding its 10ha complex to build a residential project in Davao. Accendo is the joint venture between Ayala Land (ALI) and Anflo Management and Investment Corp. (Anflocor). Meanwhile, the country’s inflation rate for the month of December 2016 rose to 2.6% from prior month’s 2.5% and from December 2015’s 1.5%.





Mart sustained strong start, PSEi @ 7,209: Local bourse remained upbeat for 2017 tracking US gains. PSEi increased by 178 points to close at 7,209 (+2.54% day-on-day), with all sectors adding gains, led by holding (+3.06%) and financials (+2.91%). Among actively-traded shares were: SECB (+P18.00 at P220.00); ALI (+P0.85 at P34.15); SMPH (+P0.20 at P29.80), on P10.28bn turnover. Gainers overwhelmed losers 146-55, while net foreign buying reached P728mn.

Might take profits: Local mart might cool down coming from previous sessions’ gains. Also, the recent surge in equities could provide an opportunity for the investors to take profits. Immediate support 7,120, resistance 7,270.


Marts higher amid optimism on Fed minutes: Bourses across the region gained anew led by Philippine (PSEi, +2.5%) and Hong Kong (Hang Seng, +1.5%) equities as investors gained confidence over the Fed minutes from the December meeting.


Equities mostly lower despite favorable economic data: Shares closed lower on looming Trump policies. President-elect Donald Trump launched tirades against car companies planning to build manufacturing facilities in Mexico. On the economic data side, US private sector created 153,000 jobs against 170,000 estimate. Weekly jobless claims reached 235,000, below the estimate of 260,000. ISM non-manufacturing index reached 57.2 vs 56.5 estimate.


Crude up on Saudi output cuts: Oil futures increased as Saudi Arabia cut output by at least 486,000 barrels a day, to meet OPEC’s agreement to cut output starting 1 January 2017. West Texas Intermediate (WTI) for February rose by $0.50 to settle at $53.76/barrel.


ALI-Anflocor firm lines up expansion plans: Accendo Commercial Corp. would be expanding its 10ha complex to build a residential project in Davao. Accendo is the joint venture between Ayala Land (ALI) and Anflo Management and Investment Corp. (Anflocor). The firm said that it will soon launch Patio Suites, a 2-tower 20-floor condominium project to serve the middle-upper income market. Patio Suites would be located on a property across the road from the existing complex, and is planned for groundbreaking early this year. Aside from the new condominium, Accendo is also building another corporate center in the Abreeza complex with 8 floors and about 11,000sqm leasable area.

MER sees lower rates in January: Meralco (MER) expects lower power rates in January due to lower generation cost in the previous month. MER also sees reductions in power supply agreements (PSAs) charges because of annual reconciliation of outage allowances as provided for in Energy Regulatory Commission (ERC) approved contracts.

PSPC received reimbursements under the DPR program: Phoenix Semiconductor Phils. (PSPC) received payment of P33mn as receivables under the Discounted Power Rate (DPR) program granted under Presidential E.O. No. 856 and its Lease Agreement with Clark Development Corp. (CDC). This would add $0.66mn to PSPC’s cash and cash equivalents.
CEB to hire 300 crew: Cebu Air (CEB) is looking into hiring 300 new cabin crew this month to support expansion. This would add to its crew of nearly 4,000.

ALHI announces turnover of Monarch Parksuites: Anchor Land (ALHI) would be delivering its second project, Monarch Parksuites this year, located in the 204ha township located along the shoreline of Manila Bay after Sole Mare Parksuites. Monarch Parksuites is considered ALHI’s biggest residential condominium project that offers fully furnished units. The development has 4 towers: Windsor Place, Windsor Suites, Balmoral Place and Balmoral Suites. The opening of the NAIA Expressway had a direct connection to the Metro Manila Skyway system, hereby making the township more accessible to the public.

FNI files letter of consideration with DENR re Ipilan Nickel: Global Ferronickel (FNI) filed a letter with the Environment Department (DENR) seeking to have the order of cancellation of Ipilan Nickel Project's ECC reconsidered. The company stated in its letter the significant programs and activities it implemented, as well as the timeline of major approvals it obtained from DENR office and other agencies.

Wilcon to push through with IPO: Wilcon Depot readies its P8bn planned initial public offering (IPO) in 1Q17, with 1.393bn commons shares to offer at a price of up to P5.68/share. In recap, the company submitted an IPO application with the SEC in November. The proceeds will be used to finance store expansion, debt repayment and other general corporate purposes. Of the total proceeds, P6.08bn would be for store network expansion from 2017-2019.










Philippines Market Insights 2017.1.5


Philippines Market Insights 2017.1.9