News Highlights: Megaworld (MEG) is planning to build a new low-rise residential tower which will be located beside the Forbes Park and McKinley West Village. Philippine Competition Commission (PCC) stands by its position that Globe (GLO) and PLDT (TEL) should not have proceeded with the payment of their final installment on the telco deal, considering pending cases filed before the Supreme Court (SC) and Court of Appeals (CA). Meanwhile, term deposit facility (TDF) rates continued to decline, with 7-day term deposits falling to 3.1384% during yesterday’s auction from 3.1918% last week.
Mart slips on tax reform delays, PSEi @7,837: The local bourse was on a wait-andsee mode on Wednesday as investors await the outcome on tax reform passage. PSEi slipped 23 points to 7,837 (-0.30% day-on-day), with most sectors in red primed by services (-0.67%). Among actively traded shares were: AGI (+P0.28 at P15.48); TEL (-P32 at P1,728); SMPH (+P0.20 at P33.70), while turnover reached P17bn amid a special block sale. Losers outnumbered winners, 107-99, while net foreign buying remained at P572mn.
Wait-and-see mode: Mart might continue to trade a little lower as sentiments from Wall Street remained sour overnight. Moreover, market might want to cash in gains ahead of key global indicators like the US jobs data before re-positioning themselves back in the loop. Immediate support is 7,800, resistance at 7,870.
Markets mixed: Markets ended mixed as cautious trading ensued as investors wait on key indicators to spur any market movement.
Equities turned sour: US equities took a downturn mainly due to the drag from financial sector, economic reports and the oil price dip on Wednesday. News circulated that 2 major banks hinted a possible weakness on trading in 2Q, but noted that it is normal for 2Q trading revenues to decline after the seasonal 1Q surge.
Crude fell: Oil dropped amid growing worries on whether the increasing US shale production could continue to undermine OPEC’s efforts to curb supply. West Texas Intermediate (WTI) for July delivery fell $1.34 to settle at $48.32/barrel.
MEG to build new tower in McKinley West:
Megaworld (MEG) is planning to build a new low-rise residential tower which will be located beside the Forbes Park and McKinley West Village. The Albany will be composed of only 64 units with own private balconies, ranging from 2-bedroom (123sqm) to 4-bedroom suites (up to 349sqm). MEG expects to sell around P3bn worth of residential inventory from this development.
PCC hits TEL and GLO over SMC assets payment completion:
Philippine Competition Commission (PCC) stands by its position that Globe (GLO) and PLDT (TEL) should not have proceeded with the payment of their final installment on the telco deal, considering pending cases filed before the Supreme Court (SC) and Court of Appeals (CA). PCC said that the completion of payment is a move that unduly preempts the forthcoming rulings of the SC and CA.
MG acquired 49% stake in PASECO:
Millennium Global Holdings (MG) purchased 49% ownership in Pacific Seafoods Company (PASECO), a nonstock Vietnamese enterprise primarily engaged in aqua foods and products processing and preservation. The amount of consideration is 17,150mn Vietnamese Dongs.
STI partnered with JA Philippines:
STI Education (STI) signed an agreement with Junior Achievement (JA) Philippines to implement JA Philippines’ Business Skills Pass (BSP) program in select STI ESG schools for Grade 11 students taking up Accountancy, Business, and Management (ABM) track. Under the program, students will be trained to operate a “mini-company” and perform the necessary steps involved in putting-up a business.
TDF rates continued to decline:
Term deposit facility (TDF) rates continued to decline, with 7-day term deposits falling to 3.1384% during yesterday’s auction from 3.1918% last week. Meanwhile, the 28-day term deposits fetched a lower rate of 3.461% from last week’s 3.476% with tenders for the P140bn offering only amounted to P105.34bn.
BIR off-track in achieving 2017 revenue target:
Bureau of Internal Revenue (BIR) is “a little bit off” in achieving its P1.829tn revenue target
for this year despite 10% increase in collections in the first 4 months amounting to P558.07bn. This amount corresponds to 30.5% only of the P1.829tn target.
Riverbend Consolidated as highest bidder for STPP:
Riverbend Consolidated Mining bested the offers of two other firms with its P305.2mn proposal for the purchase of the 850MW Sucat thermal power plant (STPP) in Muntinlupa City. The Sucat plant consists of Unit 1, which has a rated capacity of 150 MW; Units 2 and 3, each with 200 MW; and Unit 4, which is rated at 300 MW.