Philippines Market Insights 2017.6.2
News Highlights: Ayala Land (ALI) and Alsons Properties signed an agreement with St. Luke’s Medical Center (SLMC) for the opening of a hospital in Davao City by 2022. PLDT (TEL)’s Voyager Innovations is keen on expanding overseas as it still on track to expand its presence in at least two overseas markets by year end. Meanwhile, Moody’s Investors Services has maintained its 2017 GDP growth forecast of 6.5% for the country as economic impact of martial law is seen to be limited but could pose challenge to rule of law.
Mart rebounds as tax reform package gets green light, PSEi @7,927: The local bourse bounced back as the Congress approved the third and final reading of the tax reform for acceleration and inclusion (TRAIN). PSEi jumped 90 points higher to settle at 7,927 (+1.15% day-on-day), as most sectors soared, except for mining & oil (-0.51%). Among actively traded shares were: ALI (+P1.15 at P40.55); AC (+P5.00 at P873.00); GTCAP (-P33 at P1,162), while turnover reached P10.9bn. Gainers decimated, 127-82, while net foreign buying reached P190.4mn.
Might sustain rally: Our local mart might maintain its momentum as investors digest the possible outcome of the tax reform package which was recently approved by the Congress. Also, the strong finish overnight in Wall Street could trickle down to our market as well. Immediate support 7,850, resistance 7,980.
Markets mixed anew: Bourses across the region closed another session on a mixed tone upon tracking weak finish from Wall Street.
Equities closed to record highs ahead of jobs data: Shares closed higher, with all three indices reaching record intraday highs as investors anticipate the US monthly jobs report. ADP reported on Thursday that private payrolls surged to 253,000 in May, way above the 185,000 estimate.
Crude inched higher: Oil prices eked out gains after worries regarding oversupply has been dampened by the decline in US stockpiles. The Energy Information Administration (EIA) reported a 6.4mn barrel drop in inventories, higher than the 4.4mn forecast. West Texas Intermediate added $0.04 to settle at $48.36/barrel.
ALI, Alsons Properties inked deal with St. Lukes:
Ayala Land (ALI) and Alsons Properties signed an agreement with St. Luke’s Medical Center (SLMC) for the opening of a hospital in Davao City by 2022. The planned SLMC hospital will be built within the 25-ha Azuela Cove, a mixed-use real estate project by Aviana Development Corporation, a joint venture between ALI and the Alsons Group.
TEL unit keen to expand overseas:
PLDT (TEL)’s Voyager Innovations is keen on expanding overseas as it still on track to expand its presence in at least two overseas markets by year end. However, TEL said that the company’s current focus is to grow the business in the country first, with Voyager eyeing more partnerships with local government units (LGUs) to offer products and services that will enable digital transformation.
CEB passenger traffic +2.6% in April:
Cebu Air (CEB) flew a total of 1.87mn passengers in April, 2.6% higher than the 1.77mn reported in the same month last year. This figure reversed the annual decline recorded in February and March, which saw a decline of 6.5% and 0.2%, respectively. For the January to April period, Cebu Pacific and Cebgo already carried 6.63 million people, up 0.4%.
CEB adopted 20% payout policy:
Cebu Air (CEB) announced that it has adopted a dividend payment policy of approximately 20% of the previous year’s earnings per share. Declaration of the cash dividend is expected to coincide with the Annual Shareholders Meeting of the company.
CRISP maintained VLL’s ‘AAA’ rating:
Vista Land (VLL)’s issuer rating has been maintained at ‘AAA’ with a stable outlook by Credit Rating and Investors Services (CRISP) given its leadership in the “low-cost and affordable housing market, strong financial performance, strong management team, and successful operating model.”
Moody’s retained 6.5% 2017 growth forecast for PH:
Moody’s Investors Services has maintained its 2017 GDP growth forecast of 6.5% for the country as economic impact of martial law is seen to be limited but could pose challenge to rule of law.
Minimum public float doubled to 20%:
The SEC announced that it will double the minimum public float for listed companies to 20% from the current 10%. This will take effect on 01 July. With those shares currently listed and traded in the exchange, they will be required to increase their public float to at least 15% in or before 2018, and then to at least 20% in or before 2020.