News Highlights: San Miguel Corporation (SMC) to include its packaging segment into the newly-‐formed San Miguel Food & Bev. (SMFBI) in the future. On the economic front, the national government’s budget deficit widened 9% to P235bn in the first 10 months on faster spending, vs. the programmed P482.1bn for FY2017, equivalent to 3% of GDP. The Department of Finance (DOF) revises regulations to reduce the creditable withholding tax (CWT) imposed on gold sales from 5% to 1% to encourage more small scale miners to sell their gold produce to the Bangko Sentral ng Pilipinas (BSP).
Mart settled lower, PSEi @ 8,266: Mart floated on green territory throughout the day before reversing gains upon market-‐on-‐close. Only Property (+0.75%) and Industrial (+0.04%) sectors stayed on green territory. Among actively traded shares were: PXP (-‐P0.76 at P10.16), ALI (+P0.65 at P42.70), AC (unch. at P1,019.00), SMPH (+P0.20 at P35.60), and BPI (+P1.70 at P101.00), on 6.93bn turnover. Losers outpaced gainers, 83-‐109, with net foreign selling at P269.15mn.
Mixed trading: Trading might be mixed today as foreign inflows could be thinner ahead of the US thanksgiving holiday. An impending rate rise next month in the US might also sustain selling pressure, though overall growth prospects remain intact and should provide some optimism. Immediate support 8,200, resistance 8,360.
Shares broadly higher: Asian shares were broadly higher with tech shares fueling gains. Hong Kong's index reached a record high past the 30,000 mark while Japan shares also led gains despite the dollar losing strength.
Stocks mixed pre‐holiday: Stocks end mostly lower before the Thanksgiving holiday, though the Nasdaq managed to eke out another record close. The Fed's policy meeting indicated that a rate rise remains likely next month, while underpinning caution about persistently subdued inflation.
Prices at 2‐year high: Crude oil prices jumped at a 2-‐year high as the drop in US crude stockpiles added optimism to the OPEC deal extension. West Texas Intermediate (WTI) rose $1.17 to $58.00/barrel.
SMC to fold packaging biz into PF:
San Miguel Corporation (SMC) to include its packaging segment into the newly‐formed San Miguel Food & Bev. (SMFBI) in the future. SMC also plans to raise $3bn by selling 30% of SMFBI, via combined private placement & follow-‐on offer.
EAGLE's new project eyes target in 2020:
Eagle Cement Corporation (EAGLE) sees P6.5bn net income for 2018 (+44% yoy, EPS of P1.30), P4.3bn-P4.5bn for 2017, & recently broke ground its 4th cement line in Malabuyoc, Cebu, at 2mn MT capacity. Target completion is 2020.
UBP senior notes oversubscribed:
United Bank of the Philippines (UPB) issued $400mn, 5-year fixed rate senior notes under its medum‐term note plan at 3.369%. It was rated Baa2 by Moody’s & 8x oversubscribed. (closed P86.90, -‐P0.10)
DMPL's preferred offering shares approved by SEC:
Del Monte Pacific Limited (DMPL) to proceed with its $160mn series A preferred priced at $10 apiece. Proceeds will be used to finance the balance of its $154mn bridge loan facility from BDO Unibank, Inc. (BDO)
PH booked 10‐month fiscal deficit of P235bn:
The national government’s budget deficit widened 9% to P235bn in the first 10 months on faster spending, vs. the programmed P482.1bn for FY2017, equivalent to 3% of GDP.
DOF cuts withholding tax for gold sales:
The Department of Finance (DOF) revises regulations to reduce the creditable withholding tax (CWT) imposed on gold sales from 5% to 1% to encourage more small scale miners to sell their gold produce to the Bangko Sentral ng Pilipinas (BSP). Excise tax imposed on gold was retained at 2%.
BOI-‐approved projects grew 38% end-‐Oct:
Investments registered with and approved by the Board of Investments (BOI) grew 38% YoY end-‐Oct to reach P408.7bn, with full year goal at P500bn.