Philippines Market Insights 2017.12.12


News Highlights:    Megawide Construction  Corporation  (MWIDE) co‐founder Michael Cosiquien is bowing out of MWIDE to focus on their family‐owned cold storage business  through  a 2-­year  transition  period.  DMCI Holdings,  Inc. (DMC)’s  fully-­owned  DMCI Masbate  Corp. (DMPC)  entered  into an Engineering,  Procurement  & Construction  (EPC) contract with China Eng’g Group Northeast  No. 1 & 2 Electric Power Construction  (NEPC1, 2) & China Southeast  Asia Electric Power for 15MW thermal plant in Mobo, Masbate. Meanwhile, Fitch upgraded the Philippine’s credit rating to ‘BBB’ from ‘BBB-­‐‘ with stable outlook






Mart continued ascent, PSEi @ 8,359. The market continued to rise for the 3rd day after Fitch Ratings upgraded the country's credit rating by a level. All sectors ended on green territory  led by Financials  (+1.59%)  and Mining  and Oil (+1.97%),  while only Services  (-­1.37%) took a beating.  Among actively  traded shares were: AC (+P10.00  at P1,040.00), SM (+P16.50 at P997.00), BDO (+P5.00 at P153.00), SMPH (+P0.30 at P36.80), and MBT (+P1.95 at P98.10), on 5.85bn turnover. Gainers outperformed losers, 114­‐82,  with net foreign outflows at P7.57mn.

Might  trade  sideways  with  upward  bias:  A push-­and‐pull  might again follow after the run-­up  above  the  8,300  mark,  though  there  might  be  an  upward  bias  as  investors continue  to  look  for  bargains  on  aggressive  stocks  unloading  their  remaining  capex programmed for the year. Immediate support 8,250, resistance 8,440.


Chinese  shares  rise:  Asian bourses  were broadly higher on Monday  trade with Chinese stocks on the lead as shares were supported  by yet another record close on Wall Street and the absence of any geopolitical flareups.


Shares higher: US shares finished higher led by tech-­‐ & energy firms ahead of the Fed’s decision on interest rates later this week.


Prices rise on UK pipeline shutdown:  Crude oil prices hit another high as the UK North Sea’s main pipeline system is shut for weeks to undergo emergency repairs. West Texas Intermediate (WTI) climbed $0.66 to $58.02/barrel.



MWIDE’s cofounder bows out to focus on other business:

Megawide Construction Corporation (MWIDE) co­‐founder Michael Cosiquien is bowing out of MWIDE to focus on their family-­owned cold storage business through a 2-­year transition period. Edgar Saavedra’s block widened to 41% last year after getting 14.67% for P5.68bn, while Cosiquien’s stake was lowered to 25%. No official statement has been given by the parties on the matter.

DMC’s  unit  enters  into  EPC  contract  for  15MW  thermal  plant:  

DMCI Holdings, Inc. (DMC)’s  fully-­owned  DMCI  Masbate  Corp. (DMPC)  entered into an Engineering, Procurement & Construction  (EPC) contract with China Eng’g Group Northeast No. 1 & 2 Electric Power Construction  (NEPC1, 2) & China Southeast Asia Electric Power for 15MW thermal plant in Mobo, Masbate.  Construction, testing & commissioning of the said plant will be finished after 20 months & 15 days from start date.

MRC amends terms of private placement:

MRC Allied, Inc. (MRC)’s board amended the terms of their private placement from 1.9bn common shares at P0.525/share, to P2.56bn shares at P0.39/share.  No further data was given.

DNA to purchase 67% of Sydenham Lab:

Philab Holdings Corp. (DNA) will purchase 67% of 40-­year-­old  firm, Sydenham Laboratories, producer of hormone‐based drugs & oral drug preparation  in dosage form.   DNA aims to lead in precision med & pharmacogenics in Asia.


PH gets credit rating upgrade:

Fitch upgraded the Philippine’s  credit rating to ‘BBB’ from ‘BBB‐‘ with stable outlook.    Fitch was positive on the administration’s infra plan, with GDP seen rising 6.8% for 2018 & 2019.

PNOC might bid out $2bn LNG terminal in Batangas:

The Philippine National Oil Company (PNOC) may bid out the $2bn LNG terminal in Batangas  in case no qualified  proposals  are received  by 31 Dec.   PNOC is also holding talks with Asian Development Bank (ADB) for consultancy undertaking.    The plan is to set up an integrated hub with storage, liquefaction, regassification & distribution facility with initial capacity of 200MW.

DICT  wants  3rd   telco  player  to  start  mid­‐2018:

The  Info  & Communications Technology  bureau (DICT) wants the 3rd telco player to start operating mid-­‐2018,  after China Telecom was selected by China’s gov’t. as their telco arm in the Phils.

Gov’t to review extension of 10year license on Malampaya:

Gov’t. will review  whether  or  not  to  extend  the  10‐year  license  of  SPEX  &  joint venture partners Chevron Malampaya LLV & PNOC‐EC after the field’s contract  lapse  in  2024.    There  is  inclination  to  tap  PNOC-­‐EC  as  main operator & will just seek out farm­‐in deal from qualified parties for technical expertise. That would make PNOC-­‐EC get 100% of royalties from the present 10%.









Philippines Market Insights 2017.12.7


Philippines Market Insights 2017.12.14