News Highlights: Asia Brewery, Inc., a unit of LT Group, Inc. (LTG), will be producing Heineken and Tiger beers soon. LTG initially signed a joint venture with Heineken to bring the Heineken brand to the country. Meanwhile, an inter-agency under the Investment Coordination Committee (ICC) will submit nine proposals worth P738.08bn to the National Economic and Development Authority (NEDA) before endorsing to Pres. Duterte for approval.
Pocketed gains, PSEi @7,917: Local marts closed lower on Tuesday with investors seen pocketing gains as evidenced by foreign selling since Monday. Morever, investors would want to heed on BSP approach on interest rates. PSEi ended 25 points lower to 7,917 (-0.33% day-on-day), with sectors ending in red, saved for mining/oil (+0.22%). Among actively traded shares were: ALI (-P0.40 at P41.10); MER (+P1.20 at P265); WLCON (+P0.58 at P7.58), on P7.1bn turnover. Net foreign selling recorded at P374mn.
Muted trading ahead of BSP meeting: Market might continue to trade lower amid the recent drop in crude futures. Moreover, thin trading is expected ahead of the BSP meeting tomorrow. Investors would want to heed on BSP approach on interest rates, as BSP gives an assessment on the health of the economy to accommodate any rate hikes. Immediate support is 7,880, resistance at 7,950.
Most marts down: Most Asia marts closed broadly lower ahead of the potential inclusion of China stocks in the MSCI basket. MSCI adds China A shares in MSCI EM index: MSCI would be adding 222 China-A shares in its Emerging Markets index starting June 2018. This could signal a largescale repositioning of some $1.6tn funds tracking the index. The decision was a result of the positive impact on the accessibility of China A market of the Stock Connect program and the loosening of local restrictions in the stock exchange.
Shares snapped: Shares ended lower amid the sharp drop in crude prices.
Oil futures dropped: Oil futures posted its lowest finish since August amid concerns over supply glut. The rising output from Libya and the US continued to limit OPEC's efforts to cut back in production. July West Texas Intermediate (WTI) fell by $0.97 to settle at $43.23/barrel on the contract's expiration day. Meanwhile, WTI for August delivery settled at $43.51/barrel.
LTG unit to produce Heineken and Tiger beers locally:
Asia Brewery, Inc., a unit of LT Group, Inc. (LTG), will be producing Heineken and Tiger beers soon. LTG initially signed a joint venture with Heineken to bring the Heineken brand to the country. Currently, LTG has breweries located in Cabuyao, Laguna and El Salvador, Misamis Oriental.
LTG to spend P10bn in capex for 2017:
LT Group, Inc. (LTG) disclosed that they will allocate P10bn for capital expenditures. The bulk will be used for Eton Properties projects and technology upgrades for PNB.
ICC to submit P738.1bn worth of projects:
An inter-agency under the Investment Coordination Committee (ICC) will submit nine proposals worth P738.08bn to the National Economic and Development Authority (NEDA) before endorsing to Pres. Duterte for approval. These flagship projects will be among the initial projects under 'Build, Build, Build' program.
PNOC rejects Araneta lease offer:
Phil. National Oil Co. (PNOC) rejected the lease offer of Energy Oil and Gas Holdings Inc. of Gregorio Araneta III for a planned energy city in Limay, Bataan. The firm wants to lease the entire 220ha property of PNOC’s former subsidiary, Alternative Fuels Corp., but PNOC found the offer below the fair rental value.