Philippines Market Insights 2017.11.24


News Highlights:    From P88bn capex in 2017, Ayala Land, Inc. (ALI) sees improved  possibility  to work on P100bn for 2018.  49% will go to residential  projects, 28% leasing, 17% landbanking. Meanwhile, President Duterte ordered the National Economic and Development Authority (NEDA) Board to lift or ease restrictions on eight investment areas with limited foreign participation





Mart  recovered,  PSEi  @  8,343:  Mart recovered yesterday with the Senate’s approval of higher personal income tax. All sectors in green, led by Holdings (+1.27%). Among actively traded shares were: AC (+P1.00 at P1,020.00), PXP (+P0.46 at P10.62), BDO (+P1.40 at P145.90), SM (+P14.50 at P972.50), and ALI (+P0.20 at P42.90), on 4.41bn turnover. Gainers edged out losers, 105-­92, with net foreign selling at P202.98mn.

Might  continue  to  trade  higher: The Senate’s approval on higher personal income tax might continue to bolster the market today, though trading is likely to be soft as countries abroad celebrate Thanksgiving. Immediate support 8,250, resistance 8,450


Shares  lower:  Asian  bourses  were  mostly  down  Thursday,  with  Chinese  firms  under  pressure since the government tightened rules on lending.


Closed for Holiday


Oil  prices  higher:  US crude hit a 2­‐year  high in thin trade as the shutdown of a major crude pipeline from Canada and a draw on fuel inventories pointed to a tightening market, despite rising  output   from US   producers.   West Texas   Intermediate (WTI)   inched up $0.56 to 58.56/barrel.


ALI eyes higher capex for 2018:

From P88bn capex in 2017, Ayala Land, Inc. (ALI) sees improved possibility to work on P100bn for 2018.  49% will go to residential projects, 28% leasing, 17% landbanking.   If plans push through, ALI is eyeing to float P15bn-­P20bn bonds.

DNL submits new mftg facility applications:

D&L Industries, Inc. (DNL) subsidiaries D&L Premium Foods & Natura Aeropack submitted new manufacturing facility applications with the Philippine Economic Zone Authority  (PEZA).   D&L Premium  will cater to export mart, Natura targets health  & personal  care segments,  plus  home  & baby  care.   The facilities will sit on 26ha.  First Industrial  Township  in Batangas  (to be leased  from the Lao family).

VITA approves 1 share:P1.52 debt conversion:

Vitarich Corporation (VITA)’s board approved the debt-­equity  conversion of Kormasinc, Inc’s P407mn loan at 1 VITA share for every P1.52 debt, which will lead to the issuance of 267.8mn common shares.

APX to double milling capacity in 2­‐3 years:

Apex Mining Co., Inc. (APX) aims to double milling capacity to 3k tpd in 2-­3 years for its Maco mine in Compostela  Valley.  9M17 milling rate is at 1,659tpd.


Duterte  orders  easing  of foreign  restriction:

President  Duterte  ordered the National Economic and Development Authority (NEDA) Board to lift or ease  restrictions  on  eight  investment  areas  with  limited  foreign participation,  including  private  recruitment,  practice  of particular professions,  contracts for construction,  public services, etc.

Mining firms continue to invest in responsible mining:

Mining firms have invested billions of pesos to ensure responsible mining practices in the country, the Philippine Mine Safety and Environment Association (PMSEA)

Supermarket  to raise  prices:

Supermarket  owners  are  planning  to  raise prices to offset rising labor costs, depreciation of peso, higher fuel prices and surge prices in raw materials.









Philippines Market Insights 2017.11.23


Philippines Market Insights 2017.11.27