Philippines Market Insights 2017.11.03


News Highlights:  Jollibee  Foods Corp. (JFC) shuts down its 48%-­‐owned  hotpot  dining business  ‘12 Hotpot  (Shanghai)  Food and Beverage  Management  Co. Ltd.’ in mainland China to focus on bigger brands. Meanwhile, the Senate faces delay in approving 2018's P3.8tn national budget & tax reform bill (TRAIN) due to the 13-­‐15 September  ASEAN  summit.  Socioeconomic Planning  Secretary  Pernia  said the economy  likely  grew at a faster  rate in Q3 vs. previous  quarters  on strong  exports, agricultural production and investments.





Mart  breaches  new  record-­‐high,  PSEi  @  8,516: For the first time, mart ends above the 8,500 mark after the US Fed upgraded its assessment of the US economy and affirming the December rate hike to be on track. All sectors except Mining & Oil ended in green, led by Financials (+3.17), followed by Holdings (+1.90) and Property (+1.76). Among actively traded shares were: AC (+P59.00 at P1,090.00), ALI (+P0.80 at P44.00), BDO (+P6.50 at P144.00), BPI (+P1.75 at P99.75), and MEG (+P0.37 at P5.70), on 9.5bn turnover. Gainers outperformed losers, 116-­‐79,  with net foreign buying at P758.47mn.

Trade  cautiously: Optimism on Q3 economic performance and upbeat US performance after Powell’s nomination as Fed chair might sustain the upward momentum, though there might also be some downward pressure on the market after reaching a record high. Trade cautiously and selectively. Immediate support 8,400, resistance 8,550.


Shares  mixed: Asian bourses mostly ended mixed as investors digested the US Fed's decision to keep rates steady. Japan's Nikkei closed at an all-­‐time  high, lifted by gains on automakers and energy stocks.


Dow  continues  rally: Late push in financials following Trump's nomination of Powell pushed US equities higher, even as players assessed the corporate tax cut to 20% (from 35%) relative to its workability and funding options.  The bill also taxes 12% of multinational firms' offshore earnings.


Oil  reaches  new  high:  Oil closed at its highest level in more than two years after OPEC’s two biggest members, Saudi Arabia and Iraq, publicly endorsed an extension of production caps beyond their expiration in March. West Texas Intermediate (WTI) rose $0.24 to $54.54/barrel.


MEG turns over P9bn worth of units:

Megaworld Corporation (MEG) turns over 1,000 residential units for 2017 worth P9bn from 30-­‐storey  Paseo Heights & 50-­‐storey Three Central in Salcedo, Makati.

JFC shuts down hotpot business:

Jollibee Foods Corp. (JFC) shuts down its 48%-­‐owned   hotpot   dining   business   ‘12   Hotpot   (Shanghai)   Food   and Beverage Management Co. Ltd.’ in mainland China to focus on bigger brands. This business operated 16 stores under the 12 Sabu brand

PNX sells 70mn treasury  shares:

Phoenix  Petroleum  Phil., Inc. (PNX) sold 70mn treasury shares at P11.50/share  last 30-­‐Oct to retire debts.

SBS to issue stock rights:

SBS Philippines Corp. (SBS) to issue 302mn common shares (24% of issued shares) for its planned rights offer, terms to be announced.  Estimated proceeds of P1.48bn (simulated price would be P4.90), will be used for its real estate foray and working capital.  Ex-­‐ rights on 17-­‐Nov, offer run 27-­‐Nov to 05-­‐Dec 2017.

WEB awaits PAGCOR go signal:

PhilWeb Corp. (WEB) needs Philippine Amusement and Gaming Corp. (PAGCOR)'s go signal before it resumes operations.     PAGCOR  clarified  that they need to get an Electronic Management  Gaming  System  (EMGS)  provider  to oversee  compliance  of all gaming service providers, to ensure proper revenues are remitted to government.


Approval of P3.8tn 2018 budget faces delay:

Senate faces delay in approving 2018's P3.8tn national budget & tax reform bill (TRAIN) due to the 13-­‐15  September  ASEAN  summit.  Congress  would  also be left with 4 weeks to pass these measures before adjourning  for the year.

Alcohol tax stamp scheme to start Jan:

As per Finance Undersecretary Antonette Tionko, the years-­‐long  planned alcohol tax stamp on alcohol and distilled spirits will start pilot by January of next year, full implementation by June, to ensure correct payment of excise taxes.

PH Manufacturing grows solidly on Oct:

As per the Nikkei PH Manufacturing Purchasing Managers’ index, the country’s manufacturing PMI registered a sharp increase in October to 53.7 from September’s  50.8. A reading  above 50 indicates  economic  expansion,  while a reading  below 50 points toward contraction.

GDP likely grew faster in Q3:

Socioeconomic Planning Secretary Pernia said the economy likely grew at a faster rate in Q3 vs. previous quarters on strong  exports,  agricultural  production  and  investments.   To  recap,  GDP grew 6.4% in Q1 and 6.5% in Q2.









Philippines Market Insights 2017.10.30


Philippines Market Insights 2017.11.06