Philippines Market Insights 2017.12.14


News Highlights:   Rizal Commercial  Banking Corporation  (RCBCEO Gil Buenaventura,  is aiming for 12% growth in net income & 15% expansion  in lending operations for 2018. Robinsons Retail Holdings, Inc. (RRHI) bought 20% of Taste Central Curators, Inc., operator of BeautyMNL e‐commerce  site last 13 Dec. Meanwhile, Philippines  AirAsia  moved  its planned  listing  to 2H18, to raise up to $250mn  to expand  its facilities.  Members  of Congress  also approved  the request  of President Duterte to extend the declaration  of martial law in Mindanao  until Dec 31, 2018. The Senate voted 14-­4 while the House voted 226-­‐23 in favor In all, 240 members of Congress voted to approve the extension while 27 voted against.





Mart gained, PSEi @ 8,360: Mart saw minimal gains on thin trade yesterday as investors stood on the sidelines, awaiting the outcome of the Fed Reserve policy meeting and the ratification of the proposed tax bill. Services (+1.04%) and Mining and Oil (+1.40%) led gains, while Property (­0.28%) was on red territory. Among actively traded shares were: SM (­‐P15.00 at P975.00), URC (+P6.00  at  P150.00),  ALI  (‐P0.20  at  P43.95),  BDO  (+P0.50  at  P153.50),  and  AC  (­‐P5.00  at P1,020.00), on  6.3bn  turnover.  Gainers  outpaced  losers,  97-­96,  with  net  foreign  selling  at P156.89mn.

Might  trade  higher:  Mart might trade higher today following the Fed's decision to raise interest rates by 25bps to 1.25% before the year ends while our local central bank maintains stable policy. Immediate support 8,270, resistance 8,450.


Shares  broadly  higher:  Markets  in  Asia-­Pacific  were  mixed,  with  Japan  losing  ground  and  China and Hong Kong rallying after another record close for the Dow Jones and S&P 500 overnight. 


Shares mixed:  US stocks closed mixed, with S&P dragged by last-­minute profit-­taking on banking shares.  The Fed raised interest rates 25bps to 1.25% & sees 3 more rate hikes in 2018 & 2019 until 2.8% is reached.  US GDP seen growing 2.5% for 2017 (vs earlier forecast of 2.1%) & slow to 2.1% in 2019.


Prices  lower: Oil prices fell for a second‐straight  session on Wednesday, settling at their lowest level in a week. A bigger-­than‐expected  weekly rise in U.S. supplies of gasoline, along with another climb in U.S. crude production to a record weekly level, pressured prices. West Texas Intermediate (WTI) shed $0.54 to $56.60/barrel.


RCB targets 12% growth in 2018:

Rizal Commercial Banking Corporation (RCB) CEO Gil Buenaventura, is aiming for 12% growth in net income &15% expansion in lending operations for 2018.

RRHI buys 20% of Taste Central Curators:

Robinsons Retail Holdings, Inc. (RRHI) bought 20% of Taste Central Curators,  Inc., operator of BeautyMNL e‐commerce site last 13 Dec. The move would expand & strengthen RRHI’s presence in the beauty format & e­‐commerce space.

PNX eyes wider market share in LPG:

Phoenix Petroleum  Philippines,  Inc. (PNX)  targets  to  widen  its  market  share  in  LPG  from  the  current  6%, specifically  in Luzon.  PNX already placed an order for 650,000 cylinders of LPG slated for delivery in 2018.

PSALM forfeits FDC’s P400mn performance bond:

Power Sector Assets and  Liabilities  Management  (PSALM)  Corp.  forfeited  Filinvest Development Corporation (FDC) Misamis Power’s P400mn performance bond after rescinding the Independent Power Producer Administrator (IPPA) agreement  for the energy capacity of Mindanao  Geothermal  Power Plants 1&2.   Meanwhile, PSALM also terminated its IPPA with Phinma Energy   (PHEN)   on   alleged   default   as   administrator   of   Unified   Leyte (ULGPP). In recap, after the winning bid was announced, super typhoon Yolanda hit Region 8 last 08 Nov. 2013, resulting in extensive damage to ULGPP.     PHEN   &  FDC   Misamis   were   awarded   strips   of  energy   with associated 40MW capacity at a bid price of P4.6629/kWh.

Satin & Siao buys 65.92% of LMG’s capital stock:

Dominic L. Satin & Robinson Siao bought 127.6mn LMG shares, covering 65.92% of the firm’s capital stock.  The buyers also confirmed no shares were tendered based on the tender offer made by the buyers.


Congress approves 1yr extension of martial law in Mindanao:

Members of Congress approved the request of President Duterte to extend the declaration  of  martial  law  in  Mindanao  until  Dec  31,  2018.  The  Senate voted 14-­4 while the House voted 226-­23 in favor In all, 240 members  of Congress voted to approve the extension while 27 voted against.

Dennis Uy open to list his other companies:

Dennis Uy is open to list the companies  under  his  ownership  over  the  next  couple  of  years.    Uy declined to identify these firms.  In recap, Uy owns holding firm Udenna Corp. which bought into Enderun Colleges, FamilyMart & real estate, among  others.   Uy also  obtained  a gaming  license  for Emerald  Resort  & Casino in Cebu.

AirAsia moves listing plan to 2H18:

Philippines AirAsia moved its planned listing to 2H18, to raise up to $250mn to expand its facilities.  The airline firm sees doubling revenues next year from P12bn estimate for 2017.









Philippines Market Insights 2017.12.12


Philippines Market Insights 2017.12.18