Philippines Market Insights 2017.11.21


News  Highlights:    Aboitiz  Power  Corporation  (AP)  is  continuously  expanding  its  renewable  energy  (RE)  portfolio  in  the  country  for  the  development  of  all  its hydropower  projects,  which  currently  stands  around  97MW.  Meanwhile,  the  country’s  balance  of  payments  (BOP)  position  weakened  in  October  to  a  deficit  of $368mn  from a modest  surplus  of $24mn  in September,  with outflows  stemming  mainly  from the foreign  exchange  operations  of the central  bank as well as the payments  made  by the national  government  for its maturing  foreign  exchange  obligations.  The gov’t  also plans  to spend  P771.1bn  in Q4, lower  by 3% from  the P801.1bn programmed for Q3.





Mart  starts  the  week  on  flat  note,  PSEi  @  8,322:  Trading was floating on positive territory throughout the day before ending with a meager gain of 11pts. Sectors ended mixed, with Financials (+0.74%) and Holdings (+0.18%) pushing the benchmark higher. Among actively traded shares were: SM (+P14.50 at P980.00), MER (unch. at P322.00), BPI (+P0.95 at P98.50), PXP (+P0.82 at P9.80), and BDO (+P2.50 at P148.70), on 5.6bn turnover. Losers outpaced gainers, 80-­122, with net foreign buying at P294.42mn.   

Consolidation  might  continue: Mart might continue to  test its  strength following the latest balance of payments deficit in October, reversing from a modest surplus in September. Upbeat Wall Street performance, though, might bolster some strength in the market. Immediate support 8,200, resistance 8,400.  


Shares mostly higher: Asian bourses started the week in mostly green territory, though Japanese shares reversed intra-­‐day gains to settle 135pts lower as the yen strengthened against the dollar.


Shares  rally  on  corporate  earnings:  The  US  stock  market  closed  higher  Monday,  led  by  the  Dow as investors continued to focus on corporate earnings and prospects for tax cuts.


Prices  lower  ahead  of  OPEC  meeting: Crude oil prices settled lower on Monday ahead of the OPEC meeting in Vienna, where it’s widely expected that OPEC and non­‐OPEC  producers will agree to extend output curbs. West Texas Intermediate (WTI) shed $0.46 to $56.09/barrel.


AP to continuously expand its RE portfolio:

Aboitiz Power Corporation (AP) is continuously expanding its renewable energy (RE) portfolio in the country for the development of all its hydropower projects. As of now the Aboitiz Power’s hydro projects that are in advanced developments already stood around 97MW.

MEG to build ‘Maple Grove Township’:

Megaworld Corporation (MEG) will   build   ‘Maple   Grove   Township’   on   its   140ha.   Gen.   Trias,   Cavite property.    It will  have  a 6-lane  main  ave.,  with  commercial  lots  at 360-1,008sqm., set for completion  in 2022.

VLL Int’l prepares the issunace of $1bn:

Vista Land & Lifescapes, Inc. (VLL) Int’l prepares the issunace of $1bn, 7-year  medium­‐term  note program with initial price guidance of 6.125%. Proceeds will refinance 2018 & 2019 bonds.

MAXS introducing  new concept store:

Max’s Group (MAXS) will introduce new concept store in UAE & Qatar for its quick service resto (QSR) segment.  Part of the chicken offering will fearure Tandoori,  bbque, lemongrass  & ranch.


BOP weakens to $368mn in October:

The country’s balance of payments (BOP) position weakened in October to a deficit of $368mn from a modest surplus of $24mn in September, with outflows stemming mainly from the foreign exchange operations of the central bank as well as the payments made by the national government for its maturing foreign exchange obligations.

BTr  sells  retail  T­‐bonds:

The  Bureau  of  the  Treasury  (BTr)  raised  P130 billion yesterday from the sale of five-year retail treasury bonds (RTBs) at a coupon rate of 4.625 percent amid healthy demand from investors.

PH talent  strongest  in 5 yrs:  

From  57th  place  last  year,  The  Philippines climbed 10 places in the latest World Talent Rankings (WTR) to 45th, the country’s  strongest  performance   in  five  years.  Philippines’   skilled  labor rose the highest in the Readiness factor, climbing to 11th place in 2017 from 23rd in 2016. But the low human capital investment is one of the weak factor.

Gov’t to spend lower in Q4:

The gov’t plans to spend P771.1bn in Q4, lower by 3% from the P801.1bn programmed for Q3. Budget Secretary Benjamin  Diokno  said  disbursements in  the  third  quarter  are  usually higher than the fourth, based on spending trends from previous years.

SEC against crowdfunding:

The Securities and Exchange Commission  (SEC) is now looking at crowdfunding  activities that are all over the internet. SEC has filed cases against  lenders  that are not registered  with the agency  or have used fake bank documents to make their businesses appear as legitimate.









Philippines Market Insights 2017.11.20


Philippines Market Insights 2017.11.22