Philippines Market Insights 2017.11.15


News Highlights:    Morgan Stanley Capital International  (MSCI) to add Manila Electric Company  (MER) to its global standard  index on 30 Nov., East west Banking corporation (EW) & Megawide Construction Corporation (MWIDE) to be added in global small cap index. Filinvest Development Corporation (FDC) and JG Summit Holdings (JGS) consortium submitted an unsolicited proposal to  Bases Conversion and Development  Authority (BCDA) and the Department of Transportation (DOTr) for Clark Int’l Airport. Meanwhile,  the Philippines’  attraction of foreign direct investments  (FDI) moved up to the upper half of the 10-­‐country Association  Southeast Asian Nations (ASEAN).





Mart  reverses  intra-­‐day losses,  PSEi  @  8,380: Mart reversed its intra-­‐day losses with a 50pt gain upon close on the latest rebalancing of MSCI indices, which announced that it will be adding Meralco (MER) to its global standard index on Nov 30. Mining and Oil (+1.98%) and Holdings (+1.17%) pushed the bourse higher. Among actively traded shares were:  MER  (+P16.20  at P322.00),  BPI  (+P1.80  at P100.80),  ALI  (unch.  at P42.50),  EW (+P1.10 at P34.25), and SM (+P22.00 at P975.00), on 8.88bn turnover. Losers edged out gainers, 76-­‐111, with net foreign inflows at P55.46mn.

Mart  to  test  strength: Mart might test its strength again after falling below the 8,400 mark as Wall Street continues to show signs of weakness, though some upward pressure might come from investors  using the run-­‐down  as buying opportunities  for stocks with good potential. Strategic developments from the ASEAN Summit could also help bolster the market. Immediate support 8,300, resistance 8,470.


Shares  tumble: Asian bourses were mostly lower on Tuesday tracking weakness from Wall Street. Investors also digested China's economic data on the slowdown of industrial output and investment growth in the 10-­‐months period of the year.


Shares decline: Weakness in energy shares due to crude’s decline & GE’s continued drop prompted  the DJIA to close 30pts lower.  GE intends to turn itself into a smaller & more focused firm.


Oil prices rebound: Crude prices were trading as low as 2.56% intra-­‐day but ended little changed after the IEA lowered its forecast for oil demand in 2017 by 50,000 bpd and in 2018   by   190,000   bpd.   West   Texas   Intermediate   (WTI)   ended   up   with   $0.03   to $56.76/barrel.                             


MSCI adding new listed companies to its two indexes:

Morgan Stanley Capital International (MSCI) to add Manila Electric Company (MER) to its global standard index on 30 Nov., East west Banking corporation (EW) & Megawide Construction Corporation (MWIDE) to be added in global small cap index

FDC-­‐JGS are bidding for long term development of Clark Airport:

Filinvest Development  Corporation  (FDC) and JG Summit Holdings (JGS) consortium submitted  an  unsolicited  proposal  to  the  Bases  Conversion  and Development   Authority   (BCDA)  and  the  Department   of  Transportation (DOTr)  for  Clark  International   Airport.   FDC  and  JGS  appointed   Changi Airports  International   as  technical  partner.    Investment  commitment   is P839bn to transform the facilities to an international gateway.

SM Group eyes regional expansion:

SM Investments Corporation (SM) plans to expand in the region over the next 5 years – Singapore is eyed for its bank, other areas for malls.

FNI & Russian firm signs MOC for joint projects:

Global Ferronickel Holdings, Inc. (FNI) & Russian firm Vi Holding LLC, signed a Memorandum of Cooperation &  Partnership for the implementation of joint projects in processing lateritic ores.  FNI aims to benefit from Vi Holdings’ patented technology in processing nickel-­‐bearing ore that requires lower capex.

CEMEX, S.A.B. de C.V. launched CEMEX Go:

CEMEX Holdings Ph. (CEMEX) launched  CEMEX  Go,  a  digital  customer  integration   platform  providing order placement,  live tracking of shipment, managing invoices & payments for CEMEX’s main products, including bagged & bulk cement, ready-­‐mix concrete, aggregates & multi-­‐products.

PAL to establish nonstop flight:

PAL Holdings Inc. (PAL) will establish a nonstop flight between Manila and New York which will happen probably in third quarter of 2018, according to PAL President Jaime Bautista. The company is also looking for new routes into the United States like Chicago and Seattle.


Philippines moves up to 4th place in ASEAN FDI:

Philippines  attractions  of foreign direct investments  (FDI) ranking moved up to the upper half of the 10-­‐country  Association Southeast Asian  Nations  (ASEAN). The  country considered as the fourth largest recipient of FDIs in the region in 2016 with $7.93bn data from ASEAN.

China pledged loans and grants for government infra projects:

the Department of Finance (DOF) said yesterday that China has pledged an estimated $7.34bn in loans and grants to the Philippines for the implementation of the government’s flagship infrastructure projects and other priority programs.

New Zealand to give aid to Mindanao Farm sector:

To support agricultural development  and food security in Mindanao,  New Zealand has earmarked $2.5mn which is seen to benefit at least 3,000 farming households or about 15,000 people in conflict-­‐affected areas in the region.

Instapay  to process  ETFs by 1Q18:

 By 1Q18,  Bangko  Central  ng Pilipinas (BSP) said InstaPay (via PesoNet) will process real-­‐time fund transfers (ETFs) across banks & e-­‐wallets so long as transactions  are worth less than P50k.










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