Philippines Market Insights 2017.11.22


News Highlights:    PLDT  Inc. (TEL)’s  Smart  is deploying  its four-­‐component  carrier  (4CC)  aggregation  technology  in Metro  Manila  that will provide  very high LTE-­‐ Advanced mobile data speed. Metro Pacific Investments Corporation (MPI)’s tollway unit hopes to finalize in 3 months the engineering studies for phase 3 of NLEx from Sto. Tomas, Pampanga  to Dinalupihan,  Bataan. Meanwhile,  Pres. Duterte will reject the recommendation of the Mining Industry Coordinating  Council (MICC) to lift the ban on open-­‐pit mining, as there are no proposed  environmental corrective measures.  The Securities  & Exchange  Commission  (SEC) also approved raising the minimum required public float from 10% to 20% for firms listing in the Exchange.





Mart  continues  consolidation,  PSEi  @  8,289:  Mart range­‐traded  before diving at market-on-­ close. All sectors ended red except Financials (+0.11%). Among actively traded shares were: SM (- P7.00 at P973.00), SMPH (­‐P0.25  at P35.40), MER (+P1.00 at P323.00), PXP (+P1.12 at P10.92), and ALI (­‐P0.75 at P42.05), on 7.18bn turnover. Losers outpaced gainers, 78­‐124, with net foreign selling at P269.10mn.

Might  trade  higher. Mart might trade higher today after prior session’s decline, which could be good buying windows for stocks that would benefit from higher seasonal spending in Q4. The President’s vocal opposition against lifting the ban on open­‐pit  mining would likely affect mining stocks, which would put some downward pressure on the market. Immediate support 8,200, resistance 8,360.


Gains  led  by  tech  stocks: Asian  stocks  rose  Tuesday,  following  overseas  gains  overnight. The  hot tech sector, Chinese messaging and gaming contributed to drive the region’s equities.


Shares  climb  ahead  of  Thanksgiving:  US  stocks  rose  lifted  by  Verizon,  while  a  deal  in semiconductors lifted high-­‐performing tech shares. No major earnings or economic data scheduled for the week, trading volumes were thin and expected to get even quieter leading up to the Thanksgiving holiday on Thursday and an early market close on Friday.


Oil  prices  rise  on  major  crude  draw:  Crude prices rose after The American Petroleum Institute (API) reported a draw of 6.356mn barrels of US inventories, as against analysts’ prediction of just 2.1mn barrels. West Texas Intermediate (WTI) inched up $0.74 to $56.83/barrel.



TEL deploys LTE-advanced mobile data:

PLDT Inc. (TEL)’s Smart is deploying its four-‐component carrier (4CC) aggregation technology in Metro Manila that will provide very high LTE-­‐Advanced mobile data speed.

SMC’s Series C to go through consent solicitation:

San Miguel Corporation (SMC)’s  San Miguel  Brewery  will go through  consent  solicitation  from 22 Nov­‐14 Dec. for holders of Series C bonds due 2019, Series E due 2019 & F notes due 2022, for changes in trust agreements with the planned F&B consolidation.

MPI  eyes  3mo  for  eng’ng studies of  NLEx  Phase3:

 Metro   Pacific Investments  Corporation  (MPI)’s tollway unit hopes to finalize in 3 months the engineering  studies for phase 3 of NLEx from Sto. Tomas, Pampanga to Dinalupihan, Bataan. Project cost is estimated at P10bn & construction will take 3 years.

Maynilad seeks provisional water tariff adjustment:

Maynilad sought for provisional water tariff adjustment to stagger the impact of the rate hike to cover  their P3.4bn  indemnity  claim.  The Department  of Finance  (DoF) needs to review this matter & will still be subject to further meetings. Maynilad is 53%-‐owned by MPI, 25% DMC.

DMC’s order book at P28.6bn:

DMCI Holdings, Inc. (DMC)’s construction order  book  reached P28.6bn as  of  Sept.,  which  included P3.5bn new orders from Capital Commons of Ortigas, JGS petrochem & Maynilad’s La Mesa Water treatment plant. 9M17 new contracts reached P14bn (+88%). DMC Construction  (stand alone basis) earned P904mn in 9M17 (+35%).

PAL to launch MNL­‐Toronto  flights:

PAL Holdings, Inc. (PAL) to launch 3x/week,  MNL-­Toronto  direct  flights  starting  Dec  16  @14.4hours   travel time.

SBS forms Lence for warehousing:

SBS Philippines  Corporation  (SBS)  will form  65%­‐owned  Lence  Holdings  for  its  foray  into  warehouse  facilities. Lence will be capitalized at P137mn & will acquire warehouse complexes.

CAL required to register CalCoin plan:

SEC wants Calata Corporation (CAL) to register its CalCoin plan before it could list on a crypto currency exchange.  SEC said this applies to other jurisdictions that consider digital coins as securities.


Duterte  against  lifting ban on open-­‐pit  mining:

 Pres.  Duterte  will reject the recommendation of the Mining  Industry  Coordinating  Council  (MICC) to  lift  the  ban  on  open-­‐pit  mining,  as  there  are  no  proposed environmental corrective measures.

SEC approves minimum public float requirement:

The Securities & Exchange  Commission  (SEC)  approved  raising  the  minimum  required public float from 10% to 20% for firms listing in the Exchange. Meanwhile, SEC  has  yet  to  decide  on existing  listed  firms’  compliance,   possibly  by 1Q18.

3­‐in­‐1 coffee mixes excluded from SSB:

3‐in­‐1 coffee excluded  from sugar sweetened  beverage   (SSB) tax in the 2nd reading of the Senate’s deliberation to aid coffee growers’ competitiveness









Philippines Market Insights 2017.11.21


Philippines Market Insights 2017.11.23