Philippines Market Insights 2017.11.08


News Highlights:  San Miguel Corporation (SMC) acquired Best Bottlers Pty Ltd (BBPL) of Australia via 65%-­‐owned  San Miguel Yamamura Pckg. Int’l. On the economic front, October inflation was at 3.5% (vs. 2TradeAsia’s 3.6% estimate), bringing 10-­‐month average to 3.24%.





Mart  ends  flat,  PSEi  @  8,522: Mart ended flat coming from prior day's run-­‐up  above the 8,500 mark. Sectors ended mixed, with Financials (+0.66%), Property (+0.64%) and Services (+0.23%) on the green territory. Among actively traded shares were: PF (-­‐P7.00 at P455.00), MBT (+P2.95 at P94.00), ALI (+P0.60 at P45.60), URC (-­‐P6.00 at P139.50), and AC (-­‐P5.00 at P1,075.00), on 7.03bn turnover. Losers outpaced gainers, 87-­‐104, with net foreign inflows at P10.62mn.   

Earnings  still  in  focus: Q3 corporate earnings still the main focus of today’s trading day, and the within-­‐target inflation rate of 3.5% in October may spur investors’ risk appetite. Mart might generally teeter sideways with a slight upward bias as some opportunistic investors take profits on good news. Immediate support 8,450, resistance 8,600.


Shares  higher:  Asian  indexes  closed  higher  on  Tuesday  following  record  levels  from  US  and  oil prices trading at their highest marks since 2015. 


Nasdaq weighed down: Mixed reactions on tax reform and soft Q4 estimates from travel services (Priceline) weighed down the Nasdaq Comp. (-­‐18pts);  while the Dow continued to rise by a meager 8pts.


Prices lower: Crude oil prices settled lower on Tuesday after the OPEC said it expected a surge in North American shale output to cap demand for crude oil. US crude stocks fell by 1.563mn barrels  last   week,   lower   than   expected.   West   Texas   Intermediate   (WTI)   slid   $0.41  to $56.94/barrel.    


SMC acquired BBPL of Australia:

San Miguel Corporation (SMC) acquired Best Bottlers Pty Ltd (BBPL) of Australia via 65%-­‐owned San Miguel Yamamura Pckg. Int’l.   BBPL specializes in contract filling that includes wine, cider, fruit juices & RTD. (SMC closed P114.80, +P8). In line with this, the company  is building  a new glass plant  in Cavite  to be operational  by the end of 2018. Other than glass, they also see the potential to grow other packaging formats like cans, plastics, and tolling businesses.

NOW eyeing slice of residential  broadband  clientele:  

NOW Corp. (NOW) expands its Fiber Air service to residential  market, starting with Corinthian Gardens,  QC,  as  it hopes  to  capture  a small  but  loyal  slice  of  a market being aggressively pursued by industry giants PLDT Inc. (TEL) and Globe Telecom (GLO).

CLI allocates P260mn for JVs:

Cebu Landmasters Inc. (CLI)’s board approved to reallocate a total of P260mn from its IPO proceeds to invest in joint ventures.

CAL gets delisting & tender offer orders:

Calata Corporation (CAL) gets delisting & tender offer orders from the Exchange due to disclosure rule violations. Effectivity dates TBA.


October inflation  within target at 3.5%:

October  inflation  was at 3.5% (vs. 2TradeAsia’s  3.6% estimate),  bringing  10-­‐month  average  to 3.24%.  (Note:higher chances for BSP to maintain its policy setting in its meeting on Thurs, 09 Nov)









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