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.