News Highlights: PLDT (TEL) likely showed better than last year H1 earnings performance, with double-digit growth. In 1H16, TEL posted a 6% decline in its core net income to P17.7bn from P18.9bn in the previous year. Meanwhile, Bloomberry (BLOOM)'s casino Solaire Resort & Casino will add more rooms and expand its gaming area.
Mart recovered: Local mart rebounded on Friday amid investors easing on concerns over US former FBI Director James Comey’s testimony and UK general elections’ outcome. PSEi climbed 31 points to 7,990 (+0.40% day-on-day), with most sectors in green territory. Among actively-traded shares were: ALI (unch at P41.90); ICT (+P1.80 at P105.80); AC (-P1 at P869), on P8.1bn turnover. Gainers-losers reached 96-85, with net foreign buying recorded at P881mn.
Wait-and-see mode: Local marts might opt to stay on the sidelines ahead of the Fed meeting and other key global events. Investors, however, might also see this as an opportunity to reassess their portfolio in line with the administration’s thrust to inclusive economic growth as most expects implementation of its projects to start kicking off by 2H. Immediate support is 7,950, resistance at 8,020.
Mirrored US performance: Shares extended losses on Monday, mirrored by US Friday performance. Friday shrugged off: Most regional marts rose, with investors seemingly shrugging off the outcome of UK general elections.
Extended losses: Losses spread throughout Wall Street on Monday after investors on tech stocks opted to cash out gains from its strong performance. Dow Jones snapped 36 points to end lower at 21,235 (-0.17%). Tech stocks dropped on Friday: Nasdaq Comp. posted heavy losses as investors pocketed gains after hitting new highs. Meanwhile, Dow Jones rose 89 points to 21,271 (+0.4%).
Maintained gains: Spillover gains continued on Monday ahead of monthly reports for US shale production and global output supplies from OPEC and International Energy Agency West Texas Intermediate (WTI) climbed $0.25 to $46.08/barrel. Slight rebound: Oil futures managed to eke out some gains after hitting low levels. West Texas Intermediate (WTI) for July delivery gained $0.19 to $45.83/barrel.
TEL sees improved H1 performance:
PLDT (TEL) likely showed better than last year H1 earnings performance, with double-digit growth. In 1H16, TEL posted a 6% decline in its core net income to P17.7bn from P18.9bn in the previous year. TEL also said that it is on track to meet its P21.5bn core income target for this year, despite recurring core income declining 26% to P5.3bn in the Q1.
BLOOM's casino to add more rooms and expand gaming area:
Bloomberry (BLOOM)'s casino Solaire Resort & Casino will add more rooms and expand its gaming area. BLOOM also said that it remains on track with its 2nd phase expansion, which would be done when other players such as Okada Manila has fully opened in order to have a clear picture of the market size.
AP and Eton partnered for 5.2MW power supply contract:
Aboitiz Power (AP) and Lucio Tan's Eton Properties signed an agreement for a 5.2MW power supply contract to power the operations of the Cyberpod office buildings at Eton Centris in Quezon City. The power supply will be sourced from the MakBan Geothermal Power Plant in Batangas, which is operated and managed by AP subsidiary AP Renewables Inc. (APRI).
CEB applies for Manila to HK flight entitlements:
Cebu Air (CEB) seeks allocation of flight entitlements for Manila to Hong Kong under a memorandum of understanding entered into by the Philippines and Hong Kong Special Administrative Region in 2014. At present, CEB has flights to 37 domestic and 26 international destinations including Hong Kong.
PEZA now amenable to host online gambling firms:
The Philippine Economic Zone Authority (PEZA) agreed to host online gambling firms, provided that they first secure a Philippine offshore gaming operator (POGO) license from the Philippine Amusement and Gaming Corp. (Pagcor).
DoE identifies new sites for power plants:
The Department of Energy (DoE) plots ideal locations for new power plants to meet over 43,765MW of projected supply needed until 2040 and to avoid transmission congestion in the process. Among the ideal sites are: Bicol, National Capital Region (NCR), Cebu, Bohol, Samar, Zamboanga Sibugay, Sultan Kudarat and Agusan del Sur.