Philippines Market Insights 2017.10.5
News Highlights: MPCALA Holdings, under Metro Pacific Investments (MPI) hopes to get original proponent status for the P22.43bn Cavite-Batangas Expressway (CTBex) this November, while Globe Telecom (GLO) sees 50% of its mobile data traffic to come from its long-term evolution (LTE) by end-2017. On the economic front, Finance Department (DoF) sees inflation at 3.4% in September, mainly attributed to higher prices of food, fuel and power.
Mart continues momentum, PSEi @ 8,344: Mart continued to hit record highs as domestic investors bolstered the benchmark after the overnight rally of shares from Wall Street. All sectors ended on the green, led by the Services and Industrial sector. Among actively traded shares were: BDO (+P2.8 at P135), SM (+P5 at P907), ALI (+P0.15 at P43.95), PXP (+P0.33 at P8.19), and AC (+P13 at P998), on 6.55bn turnover. Gainers outperformed losers, 106-88, with net foreign selling at P426.39mn.
Might wind down: Mart might see muted trading today after hitting record highs as investors look for fresh catalysts that might encourage the market to breach and hold past the 8,400 mark. Immediate support 8,250, resistance 8,400.
Mostly higher trading after overnight rally from Wall Street: Asian markets were mostly up after the overnight rally of shares from Wall Street, while Chinese and Korean remain closed on holiday.
Shares continue upward momentum: Shares continue to end higher albeit showing signs of winding down, as investors continue to weigh in on economic data, Fed succession battle and renewed turmoil in Washington that saw Rex Tillerson publicly confirm his intention to remain on as Secretary of State.
Oil drops below $50: Crude oil prices continued to fall for the 3rd day after U.S. commercial crude oil inventories decreased by 6mn barrels from the previous week for the week ending September 29. West Texas Intermediate (WTI) shed $0.44 to $49.98/barrel
MPI's MPCALA tries to get original proponent status on CTBex:
MPCALA Holdings, under Metro Pacific Investments (MPI) hopes to get original proponent status for the P22.43bn Cavite-Batangas Expressway (CTBex) this November. CTBex aims to cut travel time from Sta. Rosa, Laguna to Nasugbu from 2-1/2 hours to 1hr. Construction will start 1Q19, completion by 1H 2022
GLO expects 50% of data traffic from LTE:
Globe Telecom (GLO) sees 50% of its mobile data traffic to come from its long-term evolution (LTE) by end-2017. Mobile data traffic in the 1H17 rose by 85% to 280 petabytes (PB), while estimated mobile penetration is now at 67% of total mobile subscribers. Meanwhile, GLO plans to add 600 LTE sites by the end of the year. To date, the company has nearly 5,000 LTE sites, which utilize the 700 megahertz (MHz), 1800 MHz and 2600 MHz frequencies.
SMC Properties to develop 130ha tourist resort:
San Miguel Corp. (SMC) via fully-owned SMC Properties is developing a 130ha in Bgy Union, Nabas, Aklan for tourist resort complex (400-room hotel under Marriott brand; convention center, ocean park). Completion of Boracay airport terminal 4Q18 via affiliate Trans Aire Dev't Holdings (99.72%-owned by SMC, holds 25-year concession on airport, runway length expansion from 950 meters to 2,100 meters.
CPG commences construction of PHirst Park Homes in Cavite, partnered with MWIDE:
Century Properties (CPG) started the construction of PHirst Park Homes in Tanza, Cavite. This project is a 26-ha. horizontal community with a total of 2,877 units. CPG also signed an agreement with Megawide (MWIDE) for the application of its precast concrete panel building systems for 2,830 housing units. As of August 017, reservation sales for the first phase has reached 91% valued at approximately P1.2bn.
LC Copper-Gold project commenced operations:
Lepanto (LC) starts commercial operation of its Copper-Gold project. Under this project, the combined indicated and inferred resources amounted to 7.746 MT at 0.896 % Cu and 1.974 g/t Au. Also, on-going drilling has outlined an additional geologic resource of 7.29 MT at 1.69 % Cu and 2.02 g/t Au. LC has sold 1,048 dry metric tons copper-gold concentrate to be shipped this week.
MFC to redeem medium-term note on Oct 6:
Manulife Financial Corp. (MFC) will redeem on 6 October its $600mn, 7.768% medium-term note due 8 April 2019 @$1,112.33 (includes accrued & unpaid interest) redemption price.
Inflation likely pegged at 3.4%:
Finance Department (DoF) sees inflation at 3.4% in September, mainly attributed to higher prices of food, fuel and power. This is higher compared to August’s 3.1%. Meanwhile, the central bank (BSP) earlier said that it sees September inflation to as high as 3.6% on the back of the same reasons including a weaker peso.
WB downgrades PH GDP forecast to 6.6% in 2017:
World Bank (WB) downgraded the country’s GDP to 6.6% this year from its previous estimate of 6.8% amid the slow pace of the infra push program. WB said that the delay in the anticipated push of the infrastructure program has been contributing to the moderation of fixed capital formation growth, softening the growth prospect for the year. WB, however, noted that the Philippines is expected to continue to be the fastest growing of the large Asean economies.