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MARKET INSIGHTS
F. Yap Securities, Inc. website
A member of the Philippine Stock Exchange
24 – 29 December 2014
I
T--BILL RATES
Rates
(as of 01 December 2014)
91-day (+11.8bps)
182-day (+11.7bps)
364-day (+6.8bps)
Total
Volume
NEW YORK
(Pbn)
1.416
1.771
8.00
6.00
1.836
6.00
20.00
Dow Jones
Nasdaq Comp.
S&P 500
Gold (US$/oz)
Copper (c/lb)
SLF (US$)
PLDT (US$)
Nym. Crude ($/bl)
Vol.
As of
26 December
18,053.71
4,806.86
2,088.77
Copper (c/lb)
SLF (US$)
PLDT (US$)
Nym. Crude ($/bl)
61,691
+0.02
64.38 (P2,876.50)
41,558
+0.59
55.35
Copper (c/lb)
SLF (US$)
PLDT (US$)
Nym. Crude ($/bl)
Vol.
Close
44.68
Open
44.60
Average
44.62
High
44.70
Low
44.53
1,174.80/1,175.30
-0.80
288.00
399.80
Chg
+6.04
+8.05
-0.29
-1.50
36.30 (P1,621.88)
193,800
+0.06
63.79 (P2,850.14)
29,000
+0.16
55.64
-1.26
Vol.
Chg
As of
23 December
18,024.17
4,766.01
2,082.11
+64.73
-14.00
+3.59
1,175.60/1,176.10
-0.30
289.50
-2.00
36.24 (P1,619.20)
274,700
+0.73
63.63 (P2,842.99)
135,200
+0.32
56.90
FOREX
Vol.($mn)
As of
24 December
18,030.21
4,773.47
2,081.88
NEW YORK
Dow Jones
Nasdaq Comp.
S&P 500
Gold (US$/oz)
+23.50
+33.39
+6.89
36.32 (P1,622.78)
NEW YORK
Dow Jones
Nasdaq Comp.
S&P 500
Gold (US$/oz)
Chg
+1.94
+37.5543
.
P
P
MARKET COMMENTARY FOR 23 December 2014
Market Outlook for 29 December 2014
PSEi gained @7,186
Local equities gained ahead of the holiday break, as Wall
Street recovered from a selloff in early December. The
PSEi added 47 points at 7,186 (+0.66% day-on-day) led
by property (+1.35%); services (+1.27%); & mining/oil
(+0.67%). Gainers among actively-traded shares were:
VMC (+P0.19 at P4.69); BDO (+P0.30 at P109.70); &
SMPH (+P0.24 at P16.90). Market breadth favored bulls,
95-75, on P8bn turnover. Net foreign buying was P12mn.
Possibilities for gauge to close above 7,200 could mark
Monday’s trading session, being the closing date for the
year.
Local portfolio fund managers might ride on
window-dressing initiatives, as they prepare for 2015
targets. Meanwhile, overall volume might stay light, as
players prepare for the long Yuletide break. Trade
selectively. Immediate support is 7,150, resistance 7,2007,240.
The Information contained herein was obtained from sources which we believe to be reliable, but whose accuracy and completeness we do not guarantee.
This document is for information purposes only and does not constitute a solicitation by us for the purchase and sale of any securities mentioned herein.
F. Yap Securities, Inc. website
A member of the Philippine Stock Exchange
MARKET INSIGHTS
24 – 29 December 2014
US markets Friday: higher after Christmas
US equities closed higher the day after Christmas as an equities rally that started last week continued through one of the slowest trading
days of the year. Dow Jones Industrial Average (DJIA) gained 23 points at 18,053 (+0.13% day-on-day), Nasdaq Composite added 33
points at 4,806 (+0.70%).
US markets Wednesday: Mixed, as traders prepare for holiday mode
US equities were little changed as indices erased gains in the final minutes of trading after closing at all-time highs the previous session.
Dow Jones Industrial Average (DJIA) closed 6 notches up at 18,033 (+0.03% day-on-day), Nasdaq Composite lost 3 points at 4,773.39
US markets Tuesday: DJIA hits 18,000 on economic data
US equities rallied past 18,000 for the first time, after data showed the US economy grew at the fastest since 2003 last quarter. The US
economy grew to an annualized 5% in 3Q, beating forecasts. Dow Jones Industrial Average (DJIA) gained 74 points at 18,024 (+0.36%
day-on-day), Nasdaq Composite fell 14 points at 4,766.01.
Friday’s Asian markets: Bourses gained
Most Asian markets gained primed by China, following a decline in money-market rates & talks government would take more steps to
bolster the economy. Japan also rallied, as investors weighed inflation data, industrial output & retail sales. Japan's inflation slowed to
2.7% from 2.9% the previous month. Industrial output for November was -0.6% month-on-month, versus estimates of 0.8% advance.
CSI 300 Index (Shanghai Comp)
Shenzhen SE Composite
Kuala Lumpur Composite Index
Taiwan Stock Exchange
Jakarta Composite Index
Singapore STI Index
Thailand Stock Exchange
South Korea Composite Index
Hong Kong Hang Seng Index
Japan's Nikkei 225
Philippine Composite Index
25 December Points Chg.
26 December
3,445.84
3,335.42
110.42
1,439.48
1,424.62
14.86
1,764.44
1,749.74
14.70
9,214.07
9,158.70
55.37
5,166.98
5,139.06
27.92
3,353.68
3,345.91
7.77
1,507.18
1,504.89
2.29
1,948.16
1,946.61
1.55
23,349.34
23,333.69
15.65
17,818.96
17,808.75
10.21
7,186.32
7,139.27
unch.
%Change
+3.31
+1.04
+0.84
+0.60
+0.54
+0.23
+0.15
+0.08
+0.07
+0.06
holiday
Thursday’s Asian markets: Mixed tone prevailed
Asian equities climbed, with Chinese shares climbing the most in 3 weeks as the yuan strengthened after government pledged to support
machinery exports. Other bourses were down with gauges in Taiwan & Thailand losing at least 0.3%
Thailand Stock Exchange
Taiwan Stock Exchange
Japan's Nikkei 225
South Korea Composite Index
Shenzhen SE Composite
CSI 300 Index (Shanghai Comp)
Hong Kong Hang Seng Index
Singapore STI Index
Kuala Lumpur Composite Index
Jakarta Composite Index
Philippine Composite Index
24 December Points Chg.
25 December
-20.17
1,504.89
1,525.06
-27.48
9,158.70
9,186.18
-45.48
17,808.75
17,854.23
7.59
1,946.61
1,939.02
20.22
1,424.62
1,404.40
105.03
3,335.42
3,230.39
unch.
23,349.34
23,333.69
unch.
3,345.91
3,332.51
unch.
1,749.74
1,749.05
unch.
5,166.98
5,139.06
unch.
7,186.32
7,139.27
%Change
-1.32
-0.30
-0.25
+0.39
+1.44
+3.25
holiday
holiday
holiday
holiday
holiday
The Information contained herein was obtained from sources which we believe to be reliable, but whose accuracy and completeness we do not guarantee.
This document is for information purposes only and does not constitute a solicitation by us for the purchase and sale of any securities mentioned herein.
F. Yap Securities, Inc. website
A member of the Philippine Stock Exchange
MARKET INSIGHTS
24 – 29 December 2014
Wednesday’s Asian markets: Equities mixed
Asian equities remained mixed although markets that were up were led by consumer-discretionary shares. Japan lead gainers (+1.24%
day-on-day) & Taiwan (+0.97%), while China weakened (Shanghai Comp. -2.84%).
CSI 300 Index (Shanghai Comp)
Thailand Stock Exchange
Singapore STI Index
Jakarta Composite Index
Kuala Lumpur Composite Index
South Korea Composite Index
Hong Kong Hang Seng Index
Shenzhen SE Composite
Taiwan Stock Exchange
Japan's Nikkei 225
Philippine Composite Index
23 December Points Chg.
24 December
-94.53
3,230.39
3,324.92
-6.34
1,525.06
1,531.40
-8.89
3,332.51
3,341.40
-8.81
5,139.06
5,147.87
-2.59
1,749.05
1,751.64
0.00
1,939.02
1,939.02
31.72
23,333.69
23,301.97
11.78
1,404.40
1,392.62
88.47
9,186.18
9,097.71
219.09
17,854.23
17,635.14
7,139.27
7,186.32 unchanged
%Change
-2.84
-0.41
-0.27
-0.17
-0.15
0.00
+0.14
+0.85
+0.97
+1.24
holiday
Tuesday’s Asian markets: Mixed on China’s manipulation probe
Asian equities were mixed, led lower by China (Shanghai Comp -2.05% day-on-day, Shenzhen SE Comp -1.39%) after its Securities
Regulatory Commission probed 19 firms suspected of market manipulation. Meanwhile, the Philippines (+0.66%) led the region higher,
followed by Malaysia (+0.44%) & Indonesia (+0.43%).
CSI 300 Index (Shanghai Comp)
Shenzhen SE Composite
Hong Kong Hang Seng Index
Thailand Stock Exchange
South Korea Composite Index
Taiwan Stock Exchange
Singapore STI Index
Jakarta Composite Index
Kuala Lumpur Composite Index
Philippine Composite Index
Japan's Nikkei 225
22 December Points Chg.
23 December
-69.56
3,324.92
3,394.48
-19.68
1,392.62
1,412.30
-106.60
23,301.97
23,408.57
-5.43
1,531.40
1,536.83
-4.10
1,939.02
1,943.12
+2.71
9,097.71
9,095.00
+10.44
3,341.40
3,330.96
+22.10
5,147.87
5,125.77
+7.59
1,751.64
1,744.05
+47.05
7,186.32
7,139.27
unchanged
17,635.14
17,621.40
%Change
-2.05
-1.39
-0.46
-0.35
-0.21
+0.03
+0.31
+0.43
+0.44
+0.66
holiday
Crude down
West Texas Intermediate (WTI) for February delivery fell $1.11 to $54.73/barrel on Nymex - its 5th weekly loss - on concerns OPEC's
refusal to cut production will worsen a global supply glut. Saudi Arabia is said to be assuming an oil price of $80/barrel for 2015 as US
crude stockpiles climbed 7.27mn barrels for the week ended 19 December, or a total of 387.2mn barrels, the highest since June.
December inflation estimates lowered
Central bank (BSP) said inflation forecast for December ranges 2.4%-3.2%, the 4th straight month monetary authorities cut their forecast. It
is also lower than November's 1-year low headline inflation of 3.7%, due to lower rice prices, jeepney fares, power rates & continued
rollback of oil prices.
October imports +7.5%
Phil. Statistics Authority (PSA) said October imports rose to $5.2bn (+7.5% year-on-year), the fastest since March’s 10% growth. 9M14
imports grew by only 4%, versus government's target of 9%.
Bank lending rates trailed central bank’s move
Central bank (BSP) chief Tetangco said average bank lending rate increased to 5.697% in October from 5.391% in June after the monetary
board elevated the reverse repurchase (RRP) rate by a total of 50 basis points (bps). He also said that December inflation could have
eased further to 2.4%-3.2% amid reduced commodity & utility costs.
The Information contained herein was obtained from sources which we believe to be reliable, but whose accuracy and completeness we do not guarantee.
This document is for information purposes only and does not constitute a solicitation by us for the purchase and sale of any securities mentioned herein.
F. Yap Securities, Inc. website
A member of the Philippine Stock Exchange
MARKET INSIGHTS
24 – 29 December 2014
DoTC to push 5 key infra projects
Department of Transportation & Communications (DoTC) will proceed with at least 5 key infrastructure projects before the administration's
term ends mid-2016. These will include NAIA Development, the P374bn Makati-Pasay-Taguig Mass Transit System Loop, P177.22bn
North-South Railway Project (South Line), a new international airport & new international port.
9 PPP projects due for rollout next year
National Economic & Development Authority's (NEDA) Cabinet Committee approved the terms for rebidding the P35.4bn Cavite-Laguna
Expressway (CALAX), with floor price of P20.1bn & Swiss challenge for the P18bn North Luzon Expressway (NLEx)-South Luzon
Expressway (SLEx) Connector Road. Both are set for NEDA approval January 2015. Other projects to be rolled-out are:
1. P19bn Motor Vehicle Inspection System
2. P374bn Makati-Pasay-Taguig Mass Transit System Loop
3. P1bn Civil Registry System-IT Project
4. P177bn North-South Commuter Railway
5. P18bn Davao Sasa Port Modernization
6. P50bn Regional Prison Facilities
7. P400mn Tanauan City Public Market Redevelopment
BPI teamed-up with Japan firm for leasing venture
Bank of the Phil. Islands (BPI) entered a Joint Venture (JV) with Century Tokyo Leasing (CTL), for the sale of 49% in unit, BPI Leasing
Corp. (BPIL). The new firm will be renamed BPI Century Tokyo Leasing & Finance Corp., & will combine resources & expertise of CTL with
BPI’s record growth. CTL is one of the largest leasing firms in Japan.
BDO buys into rural bank
BDO Unibank (BDO) entered an agreement to acquire rural bank, One Network Bank (ONB). ONB has total portfolio of 105 branches, &
micro-banking offices in Mindanao & Panay areas. ONB has P28.1bn total assets, net loans of P19.7bn, deposit franchise of P17.9bn, as of
September 2014. The purchase will give BDO access to market segments in Southern Philippines & supports the central bank’s (BSP)
thrust to promote inclusive banking via countryside branching & lending.
RCB cancels SRO due to Cathay Life’s entry
Rizal Commercial Banking (RCB) cancelled its intended Stock Rights Offer (SRO) of up to 124mn common shares at P10 apiece, in relation
to the entry of Cathay Life Insurance Co. Ltd. The proposed investment of Cathay will close upon regulatory approvals from the central
bank (BSP), Investment Commission Ministry of Economic Affairs & Financial Supervisory Commission of Taiwan.
SM unit sold stake in BDO to Malaysia’s investment bank
A unit of SM Investments (SM), Multi-Realty Development (MRDC), sold part of its stake in BDO Unibank (BDO), to Malaysia’s Khazanah
Nasional (KN), via unit Pulau Kaca Investments Ltd. The transaction covers 2% of BDO’s total capital. Khazanah is the government of
Malaysia’s strategic investment fund.
MPI unit entered OM accord for Bukidnon bulk water facility
Metropac Water Investment (MWIC), a unit of Metro Pacific (MPI), entered an accord to Operate & Maintain (O&M) the 100mn liters (L)/day
bulk water facility of Rio Verde Water (RVWC), in Bukidnon. The agreement will be implemented via a unit to be incorporated by MWIC.
RVWC is the exclusive supplier of bulk water surface water to Cagayan de Oro Water district, which supplies 80% of Cagayan de Oro
(CDO).
ALI raised its stake in Trinoma parent firm
Ayala Land (ALI) purchased its proportionate share in the interests of DBH (DBH) & Allante Realty (ARDC) in North Triangle Depot
Commercial (NTDCC). DBH & ARDC own 4.08% each in NTDCC. ALI’s proportionate interest in both firms amounted to P422.5mn,
consisting of 308,574 shares & 1.3mn preferred shares. This brings ALI’s ownership in NTDCC to 63.82% from 58.53%. NTDCC owns &
operates Trinoma Commercial Center in North Triangle, Quezon City.
ROCK, ATR Holdings to acquire ATR Land
Rockwell (ROCK) unit, Rockwell Primaries Development, entered a Memorandum of Agreement (MoA) with ATR Holdings (ATRH) &
Dragon Eagle International Ltd (DE), to jointly & collectively invest in & acquire all outstanding common shares of Maybank ATR Kim Eng
Capital Partners & ATR Kim Eng Land (ATRKE Land). ATRKE Land & Landco jointly developed Tribeca, a mixed residential/commercial
complex in Muntinlupa City. Under a Termination accord, ATRKE Land will become the sole owner & developer of Tribeca. After the
purchase in ATRKE Land, the interest will be distributed as: Rockwell Primaries (60%); DE (20%); & ATRH (20%).
FLI to boost gross leasable area by 58%
Filinvest Land (FLI) will boost gross leasable area by at least 58% next year via the expansion of mall in Muntinlupa City & launch of new
shopping centers in Cebu, Laguna, Tagaytay & Cavite. FLI now has leasable space of 134,090sqm. The expansion of Festival Supermall
in Alabang & soft launch of 4 other projects will bring gross leasable area (GLA) to 219,195sqm. FLI said in November it wants to raise its
GLA to around 995,000sqm within 5 years.
The Information contained herein was obtained from sources which we believe to be reliable, but whose accuracy and completeness we do not guarantee.
This document is for information purposes only and does not constitute a solicitation by us for the purchase and sale of any securities mentioned herein.
MARKET INSIGHTS
F. Yap Securities, Inc. website
A member of the Philippine Stock Exchange
24 – 29 December 2014
DD entered CityMall JV for Bacolod lot
DoubleDragon (DD) via unit, CityMall Commercial Centers (CMCCI), secured a joint venture for 1ha. prime commercial corner lot in
Mandalagan, Bacolod City. The site will be allocated for the construction of CityMall – Bacolod & surrounded by numerous fully-developed
residential subdivisions. The property will be the 15th site secured by CMCCI to date, & makes DD on track of its goal of completing 25
CityMalls by end-2015.
HOUSE earnings for 2014 might reach P3bn-P3.2bn
8990 Holdings' (HOUSE) 2014 profit likely reached P3-3.2bn (38-48% year-on-year). Revenues are projects to increase to P7.6-7.8bn (4146%). No official announcement has been made by HOUSE on the matter.
IMI sold Singapore lot
Speedy-Tech Electronics Ltd (STE), a Singapore-based indirect unit of Integrated Micro-Electronics (IMI), completed the sale of its property
in Singapore, for $22.4mn. With the sale, IMI is able to monetize its asset, to enhance its capital structure & proceed with investment plans.
ANS purchased block in GCCL
A. Soriano Corp. (ANS) acquired from General Cable Company Ltd. (GCCL) its 40% in Phelps Dodge International Phils. (PDP) & 0.02% in
Phelps Dodge Philippines Energy Products (PDEP), for total of $67mn. With the transaction, ANS will own the entire stock of PDP directly,
& PDEP, indirectly via PDP. PDP operates the largest wire & cable manufacturing facilities in the country, providing state-of-the-art
products for communication & information technology (IT).
STI enforced creditor rights over PWU
STI Education (STI) decided to exercise its Creditor Rights versus Phil. Women’s University (PWU) & Unlad Resources Development
(UNLAD), for the aggregate obligation of P926mn plus as subrogee for BDO Unibank (BDO) for P223mn debt. STI enforced the security
accord under the BDO Loan Facility, & acquired ¾ membership in PWU, plus ¾ of seats in the board of trustees of PWU.
PGOLD & COSCO update buyback program
Puregold (PGOLD) & Cosco Capital (COSCO) repurchased 28,200 & 472,000 shares, respectively, at an average of P36.6749 &
P8.37/share. These are initial purchases of PGOLD & COSCO, pursuant to their share repurchase plan.
BLOOM details stock incentive plan
Bloomberry (BLOOM) & parent-firm, Prime Metroline Holdings (PMH), approved the transfer of BLOOM shares owned by PMH, to
participants of BLOOM’s Stock Incentive Plan (SIP), at a sale price of P12.60/share. The board also authorized the issuance of BLOOM
shares for the same subscription details, to PMH, in replacement of shares given to SIP participants. Last October, 2mn BLOOM shares
were vested in favor of several participants under SIP. An extra 6.2mn shares were earmarked for additional participants in 2015.
PERC power unit gets clearance for Aklan wind farm
PetroWind Energy (PWE) obtained approvals from the Energy Regulatory Commission (ERC), bringing the 50MW Nabas Wind Power in
Aklan closer to commercial operations. ERC first approved PWE’s authority to develop, own, & operate dedicated point-to-point facilities,
connecting the Nabas Wind farm to the National Grid Corp. (NGCP) – Nabas-Caticlan 69Kv overhead transmission line. ERC also
approved commissioning tests for the first 8 wind turbine generators (WTGs) in Nabas, for January-March 2015. The Nabas Wind farm is
seen to contribute 400MW by 1Q15. PWEI is a JV that is 40%-owned by PetroEnergy (PERC), 40% by Singapore’s CapAsia ASEAN Wind
Holdings Cooperatief U.A., 20% EEI Power Corp.
Dividend Declaration
Company
Marcventures Holdings (MARC)
Cash
Div.
P0.15
Stock
Div.
-
Ex –
Date
16-Dec-14
Record
Date
19-Dec-14
Date
Payable
16-Jan-15
The Information contained herein was obtained from sources which we believe to be reliable, but whose accuracy and completeness we do not guarantee.
This document is for information purposes only and does not constitute a solicitation by us for the purchase and sale of any securities mentioned herein.