News Highlights: Ayala Corp. (AC), Ayala Land (ALI), Bank of the Phil. Islands (BPI) unit, BPI Capital, and Globe Telecom’s (GLO) unit, Kickstart acquired a total of 49% stake of BF Jade E-Service. Ayala Corporation (AC) sets is consolidated 2017 capex at P185bn, +13% YoY. This is mainly to support the growth strategies of its real estate, telecommunications, and water units and also the ramp up of its emerging businesses in power, industrial technologies, healthcare and education. Semirara Mining and Power (SCC) recorded P12.04bn net income in 2016, 42% higher than 2015’s P8.47bn. Meanwhile, the central bank (BSP) said that it would not necessarily be moving ‘in sync’ with the US Federal Reserve, should the Fed raise interest rates next month.
Mart sustained rally, PSEi @7,335: Local mart extended gains for the fourth consecutive day on the back of strong foreign inflows. PSEi closed 31 points higher at 7,335 (+0.43% day-on-day), with most sectors adding gains, except for property (-1.19%) and mining & oil (-0.08%). Among actively-traded shares were: ALI (-P0.65 at P36.95); BDO (+P3.30 at P119.10); and URC (+P1.00 at P166.40). Turnover clocked in at P7.3bn, with gainers outpacing losers, 92-82. Net foreign buying reached at P853.8mn.
Might track US gains: With no major economic data release during the day, our local bourse might take cues from Wall Street’s mixed finish overnight. On the other hand, the current development regarding the arrest of Sen. Leila de Lima could add political noise in the background and sway investors’ sentiment. Immediate support is 7,250, resistance 7,390.
Marts mirrored mixed finish at Wall Street: Bourses in the region closed mixed, with most bourses closing lower after the mixed close in US markets.
Equities mixed after Mnuchin speech: Shares closed mixed after the new Treasury Secretary Steve Mnuchin gave remarks regarding limited effect of the fiscal stimulus on the economy.
Crude up on fewer buildups in US stockpile: Oil prices increased after data showed that crude stockpile buildup was less than expected. West Texas Intermediate (WTI) for April delivery added $0.86 to $54.45/barrel.
AC, ALI, BPI, and GLO acquires a total of 49% stake in BF Jade E-Service:
Ayala Corp. (AC), Ayala Land (ALI), Bank of the Phil. Islands (BPI) unit, BPI
Capital, and Globe Telecom’s (GLO) unit, Kickstart acquired a total of 49%
stake of BF Jade E-Service. BF Jade E-Service owns and operates Zalora Philippines, which is currently the largest online fashion platform. To delve into details, AC bought 43.3% of BF Jade, while ALI acquired 1.91% and BPI Capital and Kickstart owning minority stakes.
AC sets P185bn consolidated capex for 2017: Ayala Corporation (AC) sets is consolidated 2017 capex at P185bn, +13% YoY. This is mainly to support the growth strategies of its real estate, telecommunications, and water units and also the ramp up of its emerging businesses in power, industrial technologies, healthcare and education. At the parent level, AC will spend P21bn for capex largely intended for the expansion of power unit AC Energy.
SCC reported 2016 net income at P12.04bn (+42%): Semirara Mining and Power (SCC) recorded P12.04bn net income in 2016, 42% higher than
2015’s P8.47bn. Before eliminations, net income after tax recorded was P10bn (+48%) with production and coal sales reaching 12.8mn tons and composite average price of P1,885/ton (-9%). Meanwhile, on a standalone basis, Sem-Cala Power (SCPC) posted net income at P1.41bn (-57%) due to more downtimes that dragged total gross generation by 27% at 2,909GWh.
MBT net income in 2016 at P18.1bn (2.8%): Metropolitan Bank and Trust
(MBT) registered net income in 2016 at P18.1bn (-2.8% YoY), with P5.5bn
(+3%) posted in the 4Q alone. Total resources reached P1.9tn, while deposits posted P1.4tn and total loans at P1.1tn.
MWC FY16 net income +2%: Manila Water Co. Inc. (MWC) posted a net income of P6.06bn (+2% YoY) for the full year 2016 on the back of higher water sales. Total billed volume grew 5% to 719.3mcm, with Manila
concession (East Zone) contributing 478.9mcm (+4%). Ayala Group earlier
mentioned that it would allot P20bn for capital expenditures for 2017, merely doubling the capex allotted last year.
ALI to be carbon neutral by 2022: Ayala Land, Inc. (ALI) is planning to reduce the greenhouse gas (GHG) emissions in its commercial properties and is aiming to be carbon neutral by year 2022. It is looking to achieve this through a combination of initiatives, which include passive cooling design, energy efficiency, renewable energy sourcing, and carbon offset mechanisms like forest regeneration and protection.
CHIB to offer P15bn stock rights: China Banking (CHIB) plans to offer P15bn stock rights to improve trading liquidity and fund expansion program. CHIB appointed China Bank Capital as its issue manager, joint bookrunner and domestic underwriter for the issuance.
BSP comments on Fed rate hike: The central bank (BSP) said that it would not necessarily be moving ‘in sync’ with the US Federal Reserve, should the Fed raise interest rates next month. BSP would still be considering the potential impact on financial markets in the near term and the impact on bank portfolios in the medium term. Albeit the BSP is keen on global developments, the country’s macroeconomic fundamentals remained
strong and sound.
Clark signed 71 lease agreements: Clark Development Corp. signed 71 lease agreements with firms, committing about $1.02bn worth of investments over the next 10 years. This notes the confidence of foreign and local investors in the country and in the Clark Freeport Zone as more firms engaged in its commercial businesses.
PCC to open construction sector for foreign players: Phil. Competition Commission (PCC) wants to open the construction sector to foreign players. PCC said that the nationality distinction hiders competition in the industry, creating uneven playing field between local and foreign contractors. The policy brief was then submitted by PCC to the Supreme Court.
Energy agencies to provide unified policy for RCOA scheme: Energy
Department (DoE), together with the Energy Regulatory Commission (ERC)
and Philippine Electricity Market Corp. (PEMC), will come out with a unified policy for power players after the Supreme Court issued a temporary restraining order (TRO) against retail competition and open access. This is to allay concerns of retail electricity suppliers (RES) and the contestable customers. Moreover, the unified advisory would address the impact of the TRO on existing contracts and provide a balancing playing field to those who had signed and had not signed up.