ABS-CBN shares plunge 30%, losing P3.8 billion in market cap

ABS-CBN shares plunge 30%, losing P3.8 billion in market cap

The network's value falls to just over P8.9 billion

Shares of embattled media giant ABS-CBN sharply fell 30% after the local bourse operator lifted its trading suspension.

Trading of ABS-CBN shares resumed on Thursday, July 23, after it reported to the Philippine Stock Exchange (PSE) its business plans and financial position amid the shutdown. The trading suspension had been implemented July 13.

With the drop in share price to just P10.36 apiece, the network lost P3.8 billion in market capitalization. (READ: ANALYSIS: How ABS-CBN's exit will hurt PH economy)

The value of the network is now at just over P8.9 billion.

This value is far from its worth in 2016 or before President Rodrigo Duterte rose to power. Four years ago, ABS-CBN shares were trading at around P60 apiece, resulting in a market cap of around P51.7 billion.

Market capitalization reflects the company’s worth in the open market, as well as how the market perceives a company’s future. It also reflects how much investors are willing to pay for its stock.

The Kapamilya network said it is now shifting resources toward its digital and cable businesses after Congress denied it a franchise.

It also told the PSE it is reducing its "non-core" activities, after a massive drop in revenues.

ABS-CBN assured creditors it would pay its obligations.

The PSE index closed at 6,029 on Thursday, down by 0.5%. – Rappler.com

Read more: https://rappler.com/business/abs-cbn-shares-plunge-losing-billions-market-cap-july-23-2020

IPO ALERT!!! - Converge ICT

BROKERS anticipate a high demand for Converge ICT Solutions, Inc.’s planned P35.92-billion initial public offering (IPO) due to positive prospects for the telecommunications sector.

Last Friday, the fiber internet provider submitted with the Securities and Exchange Commission (SEC) its registration statement to do a public offering of up to 1.5 billion shares at a maximum price of P24 each.

The offering is targeted to begin on Oct. 13 until Oct. 19, with listing on the main board of the Philippine Stock Exchange on Oct. 26.

Read more: https://www.bworldonline.com/converges-listing-success-seen-backed-by-global-digital-shift/

PX :: Buy Signal, TP at P11, P18 and P23

Philex Mining Corporation (PX) was incorporated on July 19, 1955 to primarily engage in mining activities. The Company and its subsidiaries are organized into two main business groupings: the mining business under the PX, Philex Gold Philippines, Inc. (PGPI) and Silangan Mindanao Mining Co., Inc. (SMMCI); and the energy and hydrocarbon business under the PXP Energy Corporation but not until July 15, 2016, when PXP and its subsidiaries ceased to be subsidiaries of PX as a result of loss on control through property dividend declaration. Thus, as of December 31, 2016, the Company's mining business remains as its only business segment.

PX and its subsidiaries are primarily engaged in large-scale exploration, development, and utilization of mineral resources. The Company operates the Padcal mine for the past 59 years using the underground block-cave method. It is one of the oldest operating mines in the country and produces copper concentrates, containing copper, gold and silver. PGPI operated the Bulawan mine in Negros Occidental until the second quarter of 2002. Silangan Mindanao Exploration Co., Inc., through SMMCI, owns the Silangan project covering the Boyongan and Bayugo deposits in Surigao.


Philex Mining Corporation is currently at support level TP at P11, P18 and P23

THE Mines and Geosciences Bureau (MGB) has given the green light for the Philex Mining Corp. This will attract more investor to invest on PX expect TP TP at P11, P18 and P23

MSN News:

THE Mines and Geosciences Bureau (MGB) has given the green light for the Philex Mining Corp. to employ the underground sub-level cave mining method for its Silangan mine in Surigao del Norte.

“Philex Mining Corporation is pleased to announce that the Department of Environment and Natural Resources (DENR), through the MGB, in a letter dated September 26, 2019, has approved the underground sub-level cave mining method in connection with the previously issued Order dated April 10, 2015 approving the Declaration of Mining Project Feasibility (DMPF) of the Silangan Copper- Gold Project of Silangan Mindanao Mining Company, Inc., a wholly-owned subsidiary of Philex, under MPSA No. 149-99-XII,” the listed company told the stock exchange on Thursday.

Sub-level cave mining is a mining method that starts at the top of the orebody and develops downward. Ore is mined from sub-levels with regular intervals.

MGB’s approval of the mining method includes the three-year development and utilization work program on the mine from the second half of 2019 to the first half of 2022, as well as the Environmental Protection and Enhancement Program (EPEP), Final Mine Rehabilitation and Decommissioning Plan (FMRDP), and Social Development and Management Program (SDMP).

Philex Mining said the activities under the three-year development and utilization work program for the Silangan mine can now be implemented.

The Silangan mine has three deposit areas, Boyongan, Bayugo, and Kalayaan, the latter a joint venture with Manila Mining Corp. This is expected to be Philex Mining’s biggest source of revenue after its 61-year-old Padcal mine in Tuba, Benguet is set to be closed by 2022.

The operation of the Silangan mine was originally set to begin in 2018, but has been moved to 2022 due to the government’s ban on new open-pit mining introduced in 2017.

The mining company is also in the process of looking for possible investors for the Silangan project by December 2019.

The first phase of the mine covers the Boyongan deposit, which has an estimated mine life of 22 years. Target date for commercial operations is July 2022.

Philex Mining is one of the three local units of Hong Kong-based First Pacific Co. Ltd., the two other being PLDT, Inc. and Metro Pacific Investments Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which is controls. — Vincent Mariel P. Galang

https://www.msn.com/en-ph/money/topstories/philex-gets-ok-to-use-sub-level-cave-mining-method-for-silangan-project/ar-AAIAic9?ocid=wispr

PSEi breaks 9000 barrier for the first time

MANILA, Philippines – The Philippine Stock Exchange (PSE) hit another milestone by breaking past the 9000 mark for the first time.

The PSE Index (PSEi) ended trading on Friday, January 26 at 9,041.20, up by 42.03 points or 0.5% from yesterday’s close with all indexes up save for financials and mining and oil.

“While the PSEi was unsuccessful in its two attempts earlier this week to break the 9,000 level, today the index finally penetrated this important mark. The journey to record territory reflects the high confidence investors have in our market,” said PSE President and CEO Ramon Monzon in a statement on Friday.

“We are hopeful that the market’s level will be sustained on the back of solid macroeconomic fundamentals and on expectations of upbeat corporate earnings from our listed companies. Our market is likewise in sync with regional bourses that have reached record highs this month,” he added.

The PSEi has reached new all-time highs 8 times since the start of the new year while it is up 5.6% year-to date.

The local bourse was also was named the best stock exchange in Southeast Asia by institutional investment magazine Alpha Southeast Asia earlier this month, the 4th time in 5 years it has won the award.— Rappler.com

Read more: https://www.rappler.com/business/194596-pse-9000-barrier-record-high

PSEi slips but clings to 8,900

The local stock barometer ended flat but stayed afloat the 8,900 level on Wednesday as some investors reassessed their portfolios after the recent run-up to record highs.

The main-share Philippine Stock Exchange index (PSEi) shed 3.43 points or 0.04 percent to close at 8,920.29.

While US stocks continued to rally overnight, the local market was “tired” after its successive winning sessions from the last days of December, said Luis Gerardo Limlingan, managing director at local stock brokerage Regina Capital Development.

“Index saw some pullback amid a lack of news flow in local front and as investors await the corporate results season which will be in full swing next month,” Limlingan said.

The PSEi was weighed down most by the property counter, which fell by 1.34 percent, while the holding firm counter shed 0.38 percent.

On the other hand, the mining/oil counter added 2.18 percent while the financial and services counters rose by over 1 percent. The industrial counter ended slightly higher.

Total value turnover for the day was relatively thin at P6.52 billion. Despite the PSEi’s pause, foreign investors were net buyers amounting to P626.45 million for the day.

Market breadth was neutral. There were 105 advancers versus 104 decliners while 53 stocks were unchanged.

The PSEi was weighed down by JG Summit, which fell by 2.35 percent, while Ayala Land, URC and SM Prime all fell by over 1 percent.

Metrobank, Ayala Corp., GT Capital, Jollibee, RLC and Puregold all slipped.

On the other hand, BPI and Semirara both gained over 3 percent while PLDT added 2.18 percent.

Meralco, San Miguel Corp. and ICTSI all gained over 1 percent.

BDO and Security Bank also eked out modest gains.

Read more: http://business.inquirer.net/243887/psei-slips-clings-8900#ixzz53nJUG0Ks

2018 GDP growth seen at 7-7.5%, PSEi at 9,400

While 2017 was a good year, 2018 would be even better for the economy, which could grow at a faster clip of 7-7.5 percent and catapult the local stock market to record highs.

This is according to investment house First Metro Investments Corp. and University of Asia & the Pacific which held their joint year-ahead macroeconomic briefing yesterday.

Amid a favorable economic backdrop, the Philippine Stock Exchange index is seen surging to a new high of 9,400 this year on the back of a 10-percent average growth in corporate earnings.

“We expect the growth of the Philippine economy to accelerate this year. All engines of growth are up and running at a faster pace. The country’s economy will remain the best performing in the Asean (Association of Southeast Asian Nations); we are experiencing a demographic sweet spot that will continue to push consumption expenditure,” said FMIC president Rabboni Francis Arjonillo.

“With the passage of the TRAIN (Tax Reform for Acceleration and Inclusion) law, the government’s “Build, Build, Build” program is anticipated to be full steam ahead, which will drive economic expansion further,” he added.

UA&P economist Victor Abola said the Philippines was “shifting to a higher gear.” From last year’s projected full-year growth of 6.9 percent, Abola said a higher trend growth rate of 7-8 percent would be doable for 2018 to 2020 without stoking inflation. There isn’t any sign of external weakness and property bubble so far, he said.

Inflation is seen to rise to 3.5-5 percent this year due to higher-than-expected oil prices and the impact of higher taxes to be imposed on a number of goods. The projected increase in consumer prices, however, is seen to remain within the Bangko Sentral ng Pilipinas (BSP)’ 2-4 percent target range.

FMIC is expecting one or two key policy rate hikes from the BSP this year while the US Federal Reserve is projected to raise its rates three times.

The peso is seen depreciating to 52.50 against the US dollar, without gnawing on the economy. A weak peso is seen to benefit exporters as well as households which receive overseas remittances.

Ma. Cristina Ulang, FMIC vice president, said the projected rise in the PSEi to 9,400 this year would assume a price-to-earnings (P/E) ratio of 21x, which means investors were willing to pay 21 times the kind of earnings they expect to make.

Ulang said the sectors that would do well in the stock market this year would be property, banks, consumer, infrastructure, conglomerates, manufacturing and power utilities.

Given the favorable macroeconomic outlook, the level of capital raising in the country is seen to expand this year by around 29 percent to P930 billion. Private companies are expected to drive a 17-percent growth in fixed income issuance to nearly P690 billion while the government is anticipated to tap new foreign markets for financing.

In the equities market, capital-raising activities—mostly through follow-on offerings—are estimated to grow by 79 percent to an all-time high volume of almost P250 billion

Read more: http://business.inquirer.net/243532/2018-gdp-growth-seen-7-7-5-psei-9400#ixzz53KQC4ktC 

PSEi continues winning streak

The local stock barometer continued to zoom to record highs, breaching the 8,800 mark in intra-day trade on Friday alongside bullish global equities.

The main-share Philippine Stock Exchange index (PSEi) added 30.17 points or 0.35 percent to a new record finish of 8,770. The index touched a new intra-day peak of 8,858.07 but pared gains at close.

The PSEi is now on its eighth day of winning streak. It had closed at record highs for the fifth straight session.

Across the globe, most stock markets firmed up on the back of upbeat economic data out of US and China.

For the shortened first trading week of 2018, the local stock barometer racked up a total of 211.58 points or around 2.5 percent.

The day’s gains were led by the industrial and property counters, which both gained over 1 percent, while the holding firm and mining/oil counters also firmed up.

Only the services counter slipped (-0.73 percent).

Value turnover for the day stood at P10.57 billion. There were 126 advancers that edged out 87 decliners while 51 stocks were unchanged.

The PSEi was led higher by URC, which rose by 5.06 percent, while GT Capital and San Miguel Corp. both added over 3 percent.

Ayala Corp., Ayala Land and JG Summit all advanced by over 2 percent while DMCI added 1.94 percent.

BPI, Megaworld and Meralco also contributed modest gains.

On the other hand, SM investments shed 2.86 percent while Security Bank, PLDT and Metro Pacific all declined by over 1 percent.

Metrobank and SM Prime also slipped.

Read more: http://business.inquirer.net/243571/psei-continues-winning-streak#ixzz53KNVRXbt

Philippine stocks close above 8,400 in new milestone

MANILA, Philippines – Philippine stocks continued their rally, breaching the 8,400 mark on Thursday, October 12, as investors took their cue from sentiments overseas.

At the close of Thursday's trading, the Philippine Stock Exchange index (PSEi) surged by 0.53% to 8,402.81 points. Meanwhile, the broader All Shares index rose by 20.40 points or 0.42% to 4,928.28 at the closing bell.

This is the PSEi's 4th milestone in 31 trading days.

On the same day, Bloomberg reported that Asian equities advanced after US stocks hit record highs.

Bloomberg also reported that minutes from the US Federal Open Market Committee (FOMC) meeting in September show that a December interest rate hike is likely.

"Philippine markets resumed the upward trajectory as the minutes from the FOMC meeting cofirmed what was on many analysts' minds," Marita Limlingan, president of Regina Capital Development Corporation, said in a note. (READ: New milestone as Philippine stocks breach 8,300 mark)

"The minutes from the September FOMC meeting discussed near-term effects from hurricanes Harvey, Irma, and Maria; but suggested broadly unchanged views on the underlying pace of growth and inflation," she added.

On the local front, the Philippine market is zeroing in on the developments in the proposed Tax Reform for Acceleration and Inclusion (TRAIN) bill.

President Rodrigo Duterte's economic managers said they are trying to convince the Senate to make its version of tax reform "closer" to that of the House of Representatives, to get enough financial muscle needed to implement the country's ambitious infrastructure program.

Socioeconomic Planning Secretary Ernesto Pernia had said he is optimistic that implementation of the tax reform package can begin by January 2018. (READ: EXPLAINER: Senate, House versions of the tax reform bill)

Read more: https://www.rappler.com/business/185090-philippine-stock-exchange-index-close-above-8400

The Secret Behind a Property Company's 2,500% Stock Surge

It’s been a fast ascent for college dropout Edgar “Injap” Sia, who less than a decade ago was selling barbecue chicken in the Philippines. He now leads the real estate developer with the best stock gains in Asia.

His company, DoubleDragon Properties Corp., went public in the Philippines in 2014 and has surged 2,500 percent since it began trading in April that year through Jan. 31, beating 460 other Asian developers worth at least $500 million. That surge has inflated DoubleDragon’s market value to 115.1 billion pesos ($2.3 billion), propelling it to the nation’s top five developers even though it owns and manages a fraction of the real estate held by its rivals.

Sia was studying architecture when he dropped out at 19 to start a business venture with classmates. Now 40, Sia ranks among the youngest tycoons in the Philippines. In 2003, he started a chicken shop in Iloilo City before turning it into a nationwide chain that overtook McDonald’s Corp. in store count in 2010. That year, he sold his Mang Inasal chicken chain to Jollibee Foods Corp., and later partnered with its founder Tony Tan Caktiong and with SM Investments Corp., owner of the nation’s largest retailer, to venture into property and malls.

With the same lofty ambitions he used to expand his chicken empire, Sia aims to operate 100 CityMall outlets by 2020 to help meet the basic needs of shoppers in smaller provinces. DoubleDragon is a minnow among Asian developers -- it had $844.5 million of assets in the third quarter of 2016, about 0.6 percent of the assets of Asia’s largest real estate company, China Evergrande Group.

“The stock has outperformed because many investors believe in its business model, which is geared towards addressing geographical gaps in retail,” said Cristina Ulang, head of research at Manila-based First Metro Investment Corp. “DoubleDragon is very focused on penetrating smaller cities that are growth areas of the future. It’s already positioned ahead of the others when growth filters into these smaller cities. ”

Since DoubleDragon’s 2014 initial public offering, the only developers worldwide to beat its gain have been a Venezuelan real estate investment trust and a U.S.-listed Chinese provider of real estate services. The stock surge inflated DoubleDragon’s market value to a record in June that then made it the third-most valuable Philippine builder, dislodging Megaworld Corp., the largest landlord for call centers. While DoubleDragon shares are down 26 percent from their all-time high, the stock may rebound to a new record if the company delivers on mall roll-out and earnings growth pledges, Ulang said.

The stock rose as much as 5.6 percent to a three-month high, outpacing a 0.2 percent gain in the benchmark Philippine Stock Exchange Index.

Read more: https://www.bloomberg.com/news/articles/2017-02-01/barbecue-chicken-seller-turns-tycoon-with-a-2-500-stock-surge

Pure Energy’s P1.6B IPO ok’d

The Securities and Exchange Commission (SEC) has approved a plan by Pure Energy Holdings Corp. to raise as much as P1.6 billion from an initial public offering.

Pure Energy plans to sell 930 million primary shares at a maximum price of P1.62 per share. Some 46.5 million in secondary shares have been earmarked as overallotment option.

The offering will bring to public hands up to 15.6 percent of its total shares post-IPO.

Bulk of the proceeds will be used by Pure Energy as capital for hydropower projects. The rest will be used for joint venture projects as well as operating and working capital.

Pure Energy is led by Dexter Tiu, its chair and chief executive officer. Tiu is also a director and treasurer of Coal Asia Holdings.

The company was incorporated in 2013 as a holding firm. Its three subsidiaries are REDC, Pure Water and Pure Geothermal.

REDC is into renewable energy while Pure Water has interests in bulk water, distribution utility and underwater treatment service provider.

REDC won the bidding for a geothermal concession area called Southern Leyte Geothermal Project, located at the south of the renowned Tongonan Geothermal Field. Initial feasibility study conducted by Japan External Trade Organization had estimated an available capacity of 110 megawatts.

Read more: http://business.inquirer.net/226712/pure-energys-p1-6b-ipo-okd

PSEi soars past 7,300 as US Fed jitters fizzle out

The stock barometer surged to the 7,300 level on Friday as the US Federal Reserve’s less hawkish stance boosted risk-taking appetite.

Rising for the second straight session on Friday, the Philippine Stock Exchange index (PSEi) gained 66.42 points or 0.91 percent to close at 7,345.02. The local index outperformed regional markets.

For the week, the PSEi racked up 198.75 points or 2.8 percent.

“Risk-love is in euphoria, expectations elevated, and economic surprises at peak,” investment house BofA Merrill Lynch said in a research note.

While the US Federal Reserve recently hiked interest rates by 25 basis points, its subsequent statements quashed earlier fears of a faster pace of tightening moving forward.
On Friday, the day’s gains were led by the cyclical financial and property counters, which both advanced by over
1 percent.

Only the industrial counter ended lower.

Value turnover for the day amounted to nearly P14 billion. Foreign investors were in a net buying position amounting to P169 million.

There were 103 advancers that beat 78 decliners, while 58 stocks were unchanged.

JG Summit led the PSEi higher with its 4.18 percent gain, while BPI and RLC both added over 3 percent.

EDC gained over 2 percent while ALI, BDO, SM Investments and ICTSI all rose by over 1 percent.

SM Prime, Ayala Corp., PLDT and Security Bank all firmed up.

Meanwhile, Metro Pacific, URC and AEV all tumbled by over 2 percent.

DMCI, GT Capital and Jollibee all slipped by over 1 percent.

Cemex continued to slide yesterday by 3.23 percent.

Read more: http://business.inquirer.net/226332/psei-soars-past-7300-us-fed-jitters-fizzle

Wilcon to raise P7B in Philippines’ 1st IPO this year

WILCON Depot, Inc. is raising P7 billion in the first initial public offering (IPO) this year after pricing the deal at the low end of its target range.

In a statement released on Friday, First Metro Investment Corp. (FMIC) Executive Vice-President Justino Juan R. Ocampo said the IPO price of the home improvement and construction supplies retailer was set at P5.05 per share, giving the company a market capitalization of more than P20 billion after listing.

“We convinced Mr. Belo to price at lower end to ensure discount to comparables and give upside to investors,” BDO Capital & Investment Corp. President Eduardo V. Francisco said in a separate mobile phone message, referring to Wilcon Chairman William T. Belo.

Wilson had earlier set a price range of P5-P5.68 apiece.

The offering was more than three times oversubscribed on the back of strong demand from “quality” institutional investors and offshore investors attracted to the strong prospects of the country’s construction and housing industry, FMIC said.

“The success of Wilcon’s IPO demonstrates the investment community’s continued confidence in the Philippine retail market. As disposable income of Filipinos increases, a lot more people are now buying houses or improving their existing homes,” Mr. Belo said in the same statement.

Proceeds from the IPO will be used to bankroll store network expansion, debt retirement and general corporate purposes, according to Wilcon’s prospectus.

Since opening its first store in 1977, Wilcon has transformed itself into a one-stop shop for construction supply and home improvement. It has 37 depots and small format stores across the country, 17 of which are in Metro Manila, 16 more in Luzon, 2 in Visayas, and 2 in Mindanao, with over 2,000 employees.

Wilcon is banking on the continued expansion of its store network to sustain double-digit growth in sales and earnings. In the first nine months of 2016, it booked a 10% year-on-year increase in net sales to P11.73 billion and netted 50% more or P483 million.

Wilcon kicks off the domestic tranche of the maiden share sale on March 20, with its debut on the Main Board of the Philippine Stock Exchange slated on March 31. The equity offer is selling 34% of its outstanding capital to the public.

FMIC was tapped as the issue manager and bookrunner, with BDO Capital also acting as joint lead underwriter for the IPO. RCBC Capital Corp. and Penta Capital Investment Corp. were mandated as co-lead underwriter and participating underwriter.

Read more: http://www.bworldonline.com/content.php?section=TopStory&title=wilcon-to-raise-p7b-in-philippines-1supstsup-ipo-this-year&id=142376

PSEi holds fort ahead of influential Fed Meeting

The stock barometer continued to climb on Tuesday on selective buying of large cap stocks ahead of a much-awaited US Federal Reserve meeting.

The main-share Philippine Stock Exchange index (PSEi) added 28.66 points or 0.4 percent to close at 7,261.75, rising for the second session.
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“With no economic data Monday, investors were instead focusing on the two-day Federal Open Market Committee meeting that kicks off Tuesday,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.

Limlingan noted that overnight, US stocks had closed marginally higher after switching between small gains and losses on Monday as investors refrained from making sizeable bets ahead of a Federal Reserve meeting that was widely expected to deliver an interest rate increase.

At the local market, the day’s gains were led by the financial, industrial, holding firm and services counters.

On the other hand, the mining/oil counter was down by 2.77 percent amid the challenging regulatory environment brought about by the government’s antimining bias.

Despite the PSEi’s slight gain, market breadth was negative. There were 105 decliners against 86 advancers, while 48 stocks were unchanged.

The PSEi was led higher by ICTSI, which surged by 5.04 percent and was the day’s most actively traded stock.  ICTSI announced on Tuesday the opening of Puerto Aguadulce, a joint venture terminal in Port of Buenaventura, Colombia. The first phase of the $550-million world class multi-use container and bulk handling facility can handle mega container vessels with capacities of up to 18,000 TEUs (twenty-foot equivalent units).

On Monday, ICTSI also reported a 207-percent surge in net income to $180 million.

Read more: http://business.inquirer.net/226146/psei-holds-fort-ahead-influential-fed-meeting

PSEi back to 7,200 as SM rebounds

The local stock barometer climbed back to the 7,200 level on Monday as leading conglomerate SM Investments recouped most losses from Friday’s sell-off.

The main-share Philippine Stock Exchange index (PSEi) gained 86.82 points or 1.21 percent to close at 7,233.09 on the first day of the PSEi’s rebalancing.

All counters went up, led by holding firms, which firmed up by 1.9 percent due to SM’s rebound.

SM bounced by 7.76 percent to close at P645.50. To recall, SM slid by 9.24 percent last Friday as fund managers scrambled to realign their portfolios ahead of today’s main index rebalancing.

Effective today (Monday, March 13), SM’s weight (in PSEi) was reduced by 0.51 percent along with the removal of Emperador to accommodate the inclusion of Puregold with a 1-percent weight in the index. Ron Acoba, chief investment strategist at equities research provider Trading Edge, explained that the sharp drop seen on Friday was because index funds that track the PSEi appeared to be worth more than P100 billion which sold 0.5 percent of their SM shares at Friday’s closing.

When asked whether SM had bought back shares from the open market on Monday, SM investor relations chief Cora Guidote said the rebound by driven by bargain-hunting. “A lot of investors had been waiting for a buying window. Since the drop in shares last week was purely technical, investors took advantage,” Guidote said.

Apart from SM’s rebound, the upswing in the local market also reflected mostly firmer regional markets.

“After much market drama, another rate increase from the FOMC (Federal Open Market Committee) now looks like a forgone conclusion when the committee members meet later this week. This information is already being discounted into the market,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.

In addition, Limlingan noted that US non-farm payrolls had increased by 235,000 in February with a 9,000 upward revision to the prior two months, moderately above consensus expectations. Meanwhile, he noted that US jobless ratio had edged down to 4.7 percent, one tenth below Fed officials’ estimate.

Read more: http://business.inquirer.net/226080/psei-back-7200-sm-rebounds

COL: It’s the year to buy stocks

This 2017 is an opportune year for investors to accumulate Philippine stocks especially whenever the stock barometer falls below its fair valuation of 7,500, leading online stock brokerage COL Financial said.

In a press briefing on Monday, COL head of research April Lee-Tan said it would be difficult to justify premium valuations at present given “unexciting” earnings prospects from corporate Philippines this year. COL expects average corporate earnings to rise by 6.9 percent this year, slower than previous years.

She also cited numerous risks, including higher inflation and interest rates, the weak peso and President Duterte’s policies that may prove “painful” over the short term, including his tax reform program.

But COL continued to have a favorable long-term view on the Philippine economy and the stock market, Tan said. She said the same policies that may be painful in the short-term would be beneficial in the long term, Tan added.

COL said the government needed to implement tax reforms to raise enough funds to meet its goal of increasing disbursements from around 18.2 percent of the gross domestic product (GDP) in 2016 to around 20.2 percent in 2019.

Read more: https://business.inquirer.net/224147/col-year-buy-stocks

PSE looking at up to 8 IPOs this year

MANILA, Philippines - The Philippine Stock Exchange (PSE), is looking at six to eight initial public offerings (IPOs) this year or possibly double the four IPOs last year, its top official said.

“We’re looking at six to eight IPOs this year. It should be better than last year,” PSE president Hans Sicat said in a recent interview.

Sicat declined to name which companies but noted that some of these IPO candidates already have pending applications with the PSE.

Sicat said the environment is likely better this year as some of the global uncertainties have already dissipated. These include last year’s policy rate setting meeting of the US Federal Reserve, the US elections and move of Britain to exit from the European Union.

Among the IPO bound companies are Xeleb Inc., the celebrity mobile games company of listed technology company Xurpas Inc., media technology company Audiowav and home and construction supplier Wilcon.

Last year, total capital raised from the local bourse including IPOs amounted to P170.12 billion, slightly lower than the P184.60 billion raised for the whole of 2015.

IPOs alone amounted to P29 billion last year from P5 billion in 2015, according to data from the First Metro Investment Corp., the investment banking arm of George Ty-owned Metrobank.

Read more at http://www.philstar.com/business/2017/01/16/1662580/pse-looking-8-ipos-year

PSEi rallies ahead of GDP

MANILA, Philippines - The stock market rallied yesterday on expectations of a strong gross domestic product (GDP) growth for 2016.

The benchmark Philippine Stock Exchange Index soared 141.69 points or 1.95 percent to finish at 7,374.35 while the broader All Shares index rose by 60.51 points or 1.38 percent to end at 4,426.14

Most of the sectors likewise closed in positive territory recording huge gains – 2.26 percent for the holding firms index, 1.57 percent for the services gauge and 1.49 percent for the financials index

Total value turnover reached P5.61 billion.

Market breadth was positive as advancing stocks outpaced decliners, 108 to 79 while 45 stocks were left unchanged.

The National Economic and Development Authority (NEDA) is expected to announce the fourth quarter and full year 2016 gross domestic product performance on Jan. 26.

Moody’s Analytics expects the economy to have accelerated to 7.05 percent in 2016 as it is expected to have accelerated 7.2 percent in the final quarter of last year,

Read more at http://www.philstar.com/business/2017/01/24/1664813/psei-rallies-ahead-gdp-report

Philippines stocks higher at close of trade; PSEi Composite up 1.96%

Investing.com – Philippines stocks were higher after the close on Monday, as gains in the Holding Firms, Services and Banking & Financials sectors led shares higher.

At the close in Philippines, the PSEi Composite gained 1.96% to hit a new 1-month high.

The best performers of the session on the PSEi Composite were SM Investments Corp (PS:SM), which rose 5.37% or 36.000 points to trade at 706.000 at the close. Meanwhile, Robinsons Land Corp (PS:RLC) added 4.17% or 1.050 points to end at 26.200 and Globe Telecom Inc (PS:GLO) was up 4.04% or 68.000 points to 1750.000 in late trade.

The worst performers of the session were Alliance Global Group Inc (PS:AGI), which fell 1.25% or 0.160 points to trade at 12.600 at the close. Semirara Mining Corp (PS:SCC) declined 0.14% or 0.2000 points to end at 139.5000 and Megaworld Corp (PS:MEG) was 0.00% or 0.000 points to 3.730.

Rising stocks outnumbered declining ones on the Philippines Stock Exchange by 107 to 79 and 45 ended unchanged.

Gold for February delivery was up 0.69% or 8.35 to $1213.25 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in March fell 0.64% or 0.34 to hit $52.88 a barrel, while the March Brent oil contract fell 0.47% or 0.26 to trade at $55.23 a barrel.

CNY/PHP was up 0.25% to 7.2775, while USD/PHP fell 0.05% to 49.895.

The US Dollar Index was down 0.44% at 100.33

The Bill Chill plans P600M IPO

Beverage retailer The Big Chill Inc. (TBCI), a subsidiary of publicly-listed Agrinurture Inc. (ANI), plans to debut on the local stock market this year to raise as much as P600 million for an expansion program in Greater China.

Banking on rekindled bilateral ties between China and the Philippines following Pres. Rodrigo Duterte’s visit to Beijing last October, TBCI said in a press statement on Monday that it would raise capital expenditures for such offshore expansion.

Ahead of this equity exercise, the board of TBCI approved the issuance of warrants in favor of qualified shareholders of its parent firm ANI as of record date Feb. 3, 2017.

A warrant gives the holder the right, but not the obligation, to buy or sell a security at a certain price before expiration. The price at which the underlying security can be bought or sold is referred to as the exercise price or strike price.

In this case, a shareholder of ANI owning at least 2,000 shares will have the right to avail of one TBCI warrant at the strike price of P1 or based on TBCI par value, with five-year American call option that will expire on Jan. 19, 2022. The ratio will be one warrant equivalent to one TBCI share.

The proposed initial public offering is expected to range from a low of P500 million to as high as P600 million, a company spokesperson said.

Read more: https://business.inquirer.net/223369/bill-chill-plans-p600m-ipo

PSEi now at 7,300 level

The local stock barometer continued its winning streak for the sixth straight session on Tuesday, firming up above the 7,300 mark despite an overnight downturn in Wall Street.
T
he main-share Philippine Stock Exchange index gained 88 points or 1.21 percent to close at 7,364.34 as risk appetite held up across the region despite renewed jitters in the West.

“Risk sentiment took a hit last night with investors getting anxious about the future of the single EU market. Weakening of commodity prices did not help the broad sentiment either,” Citigroup said in a research note.

At the local market, positioning for the year ahead continued to dominate given good prospects for the economy this year.


Read more: https://business.inquirer.net/222765/psei-now-7300-level