Philippines Market Insights 2018.1.10


News  Highlights:   Phil.  Competition   Commission   (PCC)  cleared  SM  Retail’s  purchase   of  Goldilocks   Bakeshop,   after  SM  Retail  committed   to  give  Goldilocks’ competitors a fair share in their lease at all times. Manila Electric Company (MER) said the tax reform program will raise power rates by P0.08/kWh with the lifting of VAT  exemption,  but  January  bills  will  go down  due  to lower  demand  as a result  of cooler  temperature  in December.  In other  news,  Pres.  Duterte  ordered  the suspension of logging concessions in Zamboanga peninsula after triggering massive flooding in the area.





Mart  soars  to  another  recordhigh,   PSEi  @  8,924:  Buying  spree  prevailed  on  continued bullishness for the economy, lifted also by foreign investors who loaded  up on equities. All sectors ended on green, with Property (+2.40%) and Financials (+2.24%) leading gains. Among actively traded shares were: ALI (+P1.20 at P46.40), URC (+P9.00 at P174.00), SM (+P21.00 at P1,046.00), AC (+P8.00 at P1,065.00), and TEL (+P7.00 at P1,419.00), on 8.36bn turnover. Gainers outperformed losers, 118-­93, with net foreign inflows at P1.42bn.  

Might take a breather:  Mart might take a breather from the recent surge past the 8,900 mark as some investors could opt to buck the rally. Bullishness from Wall Street and across the Asian­‐ Pacific region can be contagious, so   there is still room for growth. Immediate support 8,840, resistance 8,990.


Asian markets extend New Year rally: Stock markets across the Asian region extended their New Year rally, with Japanese shares paring gains after the Bank of Japan decided to cut the size of its offer for bonds maturing in 10-­25 years by 5% to ¥190bn (or $1.7bn) which sent the yen higher.


Shares  higher: Expectations of strong quarterly earnings among healthcare & financials lifted US equities.


Oil prices continue rise:  Oil rose further on Tuesday, supported by OPEC-­led production cuts and expectations US  crude  inventories fell  for  an  eighth  week.  West  Texas  Intermediate (WTI) climbed $1.23 to $62.96/barrel.                                                             



PCC clears SM Retail’s purchase of Goldilocks:

Phil. Competition Commission (PCC) cleared SM Retail’s purchase of Goldilocks Bakeshop, after SM Retail committed to give Goldilocks’ competitors a fair share in their lease at all times.  SM Retail also vowed to use ‘information firewall’ to ensure SM Retail/Goldilocks will not use sales data to their advantage.

MER says tax reform to raise rates by P0.08/kWh, but not in January:

Manila  Electric  Company  (MER)  said  the  tax  reform  program  will  raise power rates by P0.08/kWh  with the lifting of VAT exemption,  but January bills will go down due to lower demand  as a result of cooler temperature in December.Of the P0.08/kWh, the 12% VAT on transmission wheeling charges is at P0.07, while higher excise tax on coal covers P0.01/kWh.


AP’s unit to streamline ownership in GNPower’s Mariveles Coal Plant Ltd.& Dinginin Ltd. Co.:

boitiz Power Corporation (AP)’s fully-­owned  unit, Therma Power (TPI), is streamlining its ownership in GNPower Mariveles Coal Plant Ltd. & GNPower Dinginin Ltd. Co. that will cover the transfer of direct ownership of the 2 firms from the offshore subsidiaries of TPI, to TPI.  Also, there will be an eventual dissolution & liquidation of offshore intermediary subsidiaries.   The move will have TPI directly own 66% in GNPower‐Mariveles & 50% partnership interest in GNPower-­Dinginin.

PAL reverts par value change back to P1/share from P0.45/share:

PAL Holdings, Inc. (PAL) par value change from P1 to P0.45/share  & revert back to P1/share,  will be reflected  in PSE’s system on 12 Jan. 2018.   The move will  partially  wipe-­out PAL’s  deficit  & align  its par  value  with  its subsidiaries.

PERC’s wind energy arm reaches 250 GWhgeneration mark:

PetroEnergy Resources Corporation (PERC)’s wind energy arm, PetroWind Energy (PWEI) reached its 250 GWh­‐generation  mark for the first week of Jan. 2018. PWEI’s energy production comes from its 36MW facility in Aklan that began commercial operations  June 2015.

SLI to borrow P3bn to prepay debts, finance dev’t costs & general corp. requirements:

 Sta. Lucia Land, Inc. (SLI) plans to borrow P3bn with an over allotment  option of P2bn, to pre-­pay debts, finance  development  costs & general corporate  requirements.   SLI’s board also approved  acquiring  lots, the biggest  of which  is in GenSan  (239k  sqm);  Iloilo  (99.8k  sqm);  Laguna (62k  sqm);  &  Davao  (50k  sqm).    SLI  also  approved  JV  projects,  which includes Bulacan (715k sqm); Batangas (383k sqm); Palawan (178k sum), among others.

ALHI prepares launch of P1.5bn urban bedspacing Cosmo Suites:

Anchor Land Holdings, Inc. (ALHI) is preparing to launch its P1.5bn, urban bed­‐ spacing, Cosmo Suites in Pasay City.  The project is composed of two 16-­storey buildings  & will offer 3,000 beds with over 800 units (1 unit with at least 4 beds). The project will serve the needs of the BPO industry.


Duterte orders suspension of logging concessions in Zamboanga after massive flooding:

Pres. Duterte  ordered  the suspension  of logging concessions  in Zamboanga  peninsula  after  triggering  massive  flooding  in the area.   Agri Sec. Pinol earlier  said he would  recommend  to Duterte  to stop the alleged logging operations of the Consunji family in the Zamboanga Peninsula.

BCDA & Japan Overseas Infra. Corp. team up with Singapore firm for New Clark City:  

Bases  Conversion  and  Development  Authority  (BCDA)  & Japan  Overseas  Infrastructure   Investment  Corp.  for  Transport  &  Urban Dev’t.   teamed-­up   with  Surbana   Jurong   of  Singapore   to  help  prepare detailed design & guidelines for the 9,450ha. New Clark City.









Philippines Market Insights 2018.1.8


Philippines Market Insights 2018.1.12