MARKET INSIGHTS - 2TradeAsia.com
Transcription
MARKET INSIGHTS - 2TradeAsia.com
MARKET INSIGHTS F. Yap Securities, Inc. website A member of the Philippine Stock Exchange 22 December 2014 I T--BILL RATES Rates (as of 01 December 2014) Volume NEW YORK 1.416 1.771 8.00 6.00 Nasdaq Comp. S&P 500 1.836 6.00 Gold (US$/oz) Copper (c/lb) SLF (US$) PLDT (US$) Total Chg FOREX (Pbn) Dow Jones 91-day (+11.8bps) 182-day (+11.7bps) 364-day (+6.8bps) Vol. 20.00 Nym. crude ($/bl) 17,804.80 +26.65 Close 44.73 4,765.38 2,070.65 +16.98 +9.42 Open 44.80 1,196.00/1,196.50 +0.10 Average 44.75 290.75 +0.55 High 44.80 Low 44.72 35.93 (P1,607.15) 460,478 +0.37 62.90 (P2,813.52) 110,210 -0.39 56.52 +2.41 Vol.($mn) 295.65 P P MARKET COMMENTARY FOR 19 December 2014 Market Outlook for 22 December 2014 Mart advances to 7,125 Local equities continued to rally after the Fed pledged to maintain their patience in boosting interest rates. PSEi advanced 96 points at 7,125 (+1.37% day-on-day), led by financials (+1.79%); industrials (+1.61%) & holdings (+1.3%). Gainers among actively-traded shares were: SM (+P8.50 at P798.50); ALI (+P0.45 at P33.40); & TEL (+P12 at P2,814). Market breadth favored gainers, 11962 on P20.6bn turnover. Foreigners were net buyers at P666mn. Continuity of Friday’s momentum might be seen, albeit modestly, as some players park excess cash in equities prior to the holidays. With fundamentals intact plus support from cheaper crude prices, consumer plays may take the limelight, on brisk demand for the season. Select property & holdings might also take notice, especially those with double-digit growth potentials for 2015. Immediate support is 7,100, resistance 7,170. Most bourses closed green Asian equities rallied after the Fed maintained patience in raising interest rates. Japan (+2.39% day-on-day) led gainers; South Korea (+1.71%); & Philippines (+1.37%). Japan's Nikkei 225 South Korea Composite Index Philippine Composite Index Taiwan Stock Exchange Hong Kong Hang Seng Index CSI 300 Index (Shanghai Comp) Singapore STI Index Kuala Lumpur Composite Index Jakarta Composite Index Thailand Stock Exchange Shenzhen SE Composite 18 December Points Chg. 19 December 17,621.40 17,210.05 411.35 1,929.98 1,897.50 32.48 7,125.63 7,029.28 96.35 8,999.52 8,878.63 120.89 23,116.63 22,832.21 284.42 3,383.17 3,345.93 37.24 3,279.53 3,243.65 35.88 1,715.99 1,699.95 16.04 5,144.62 5,113.34 31.28 1,514.35 1,516.79 -2.44 1,465.59 1,484.26 -18.67 %Change +2.39 +1.71 +1.37 +1.36 +1.25 +1.11 +1.11 +0.94 +0.61 -0.16 -1.26 Wall Street up US equities rose as the Fed’s status quo stance spurred the biggest 3-day jump since 2011 as anxiety faded. Dow Jones Industrial Average (DJIA) was up 26 points at 17,804 (+0.15% day-on-day), Nasdaq Composite added 16 points at 4,765 (+0.36%). Crude up Crude futures recovered after Saudi oil minister Al-Naimi said the slump in prices is temporary. However, he also hinted it would be "difficult, if not impossible" for OPEC to curb oil production. West Texas Intermediate (WTI) rose $2.41 at $56.52/barrel in Nymex. 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 22 December 2014 3Q external debt -2% Central bank (BSP) said the country's external debt eased to $57.7bn in 3Q (-2.4% y-o-y, -0.7% q-o-q). The decline stemmed from foreign exchange rate revaluation & debt repayments that were offset partially by foreign investment in Philippines-issued debt. Gross international reserves (GIR) reached $79.6bn, enough to cover 8.4x of foreign debt. Latest BGC lot sale @P365k per sqm. Beleaguered pre-need firm Prudentialife Plans has been allowed to sell its 1,100sqm. lot on 21st Drive cor. 20th in Bonifacio Global City (BGC). The lot was sold to Q-Creativs & Imageers for P402mn, with minimum bid price of P307mn, or P365,454/sqm. Last September, Government Service Insurance System (GSIS) received a bid for 1,600sqm. on 7th Ave., for P800mn, or P500,000/sqm, while its other 1,600sqm property on 6th Avenue, garnered the highest bid of P732.83mn or P458,016/sqm. LRT, MRT fare to be raised Transportation bureau (DoTC) will implement the P11 base fare plus P1 per additional kilometer formula for fares at LRT 1 & 2, plus MRT 3 starting 04 January. The move will free up P2bn government subsidies, to be used for other public projects. Double-digit export growth seen Philippine Exporters Confederation (Philexport) expects 10%-12% export growth in 2015 with the continued growth in electronics, increase in global demand & recent EU GSP+ perks. The projection will be discussed by Philexport's Board of Trustees 1Q15. Merchandise exports grew 9.2% annually to $51.769bn in the 10 months to October, surpassing government's 6% target for 2014. MWC will effect FCDA adjustment in tariffs Manila Water (MWC) will have P0.36/cubic meter (cu m) Foreign Currency Differential Adjustment (FCDA) for water rates, effective 15 days after publication. This is based on exchange rate of P44.7979:$1 & P0.4156:¥. The FCDA will be adjusted to 1.32% of basic charge for 1Q15. PNB concluded P7bn LTNCD float Phil. National Bank (PNB) completed the public offer of its P7bn peso-denominated, Long Term Negotiable Certificates of Time Deposits (LTNCDs) last December. The 5-1/2-year LTNCDs was oversubscribed, priced at 4.125%. MER sees cheaper power rates Meralco (MER) chief Oscar Reyes said the continued drop in global crude prices could bring down power rates, encouraging higher demand. About 40% of MER's supply is fueled by Malampaya natural gas, indexed to world oil prices. MWIDE secured financing Megawide (MWIDE) & GMR Infrastructure signed a P23bn omnibus loan & security agreement with a syndicate of 6 local banks to finance 70% of total cost for the P17.5bn Mactan Airport project. BDO Capital was lead arranger, Bank of the Phil. Islands (BPI), DBP, Landbank, Metrobank (MBT) & Phil. National Bank (PNB) were participants in the lending consortium. URC to supply Flying V with ethanol Universal Robina (URC) will supply Flying V with 1mn liters of fuel-grade anhydrous ethanol next year, with the transaction priced at $300,000-$470,000. The move is in accordance with the energy bureau’s bioethanol plan, requiring gasoline to have 10% ethanol blend. URC ethanol will come from its recently inaugurated plant in Bais City, Negros Oriental that produces 100,000L/day from sugar molasses of 3 sugar mills in the area. URC also commissioned a 46MW biomass cogeneration power plant in Negros Occidental. RRHI to expand retail portfolio Robinson's Retail (RRHI) will expand its portfolio next year via other formats. RRHI acquired this year 67% in AM Builders' Depot, a Visayas-based hardware chain, to establish a presence in the big-box retail format. They are not into fast food, furniture & sporting goods yet. It has always been a plan to expand into those formats but it's not immediate. JFC teamed-up for Dunkin’ Donuts in China Jollibee Foods (JFC), via unit Jollibee Worldwide Pte Ltd (JW), entered a Joint Venture (JV) with Jasmine Asset Holdings Ltd (Jasmine), to own & operate Dunkin’ Donuts (DD) in China. JW & Jasmine also signed an accord with Dunkin’ Donuts Franchising LLC, to execute a Master Franchise Agreement (MFA), between DD & the JV firm, upon compliance with regulatory requirements. Under the deal, the JV will have exclusive rights to develop Dunkin’ Donuts, in the following China territories: Hong Kong; Macau; Fujian; Hunan; Jiangxi; Guangdong; Hainan; Guanxi; Beijing; Tianjin; Hebei; Shangxi; Chongqing; Guizhou; Sichuan; Yunnan; Heilongjiang; & Jilin. JW will own 60%, the balance under Jasmine. Both committed to invest $300mn, $180mn of which will be contributed by JW. The JV will open & operate 1,459 shops in China, over 20 years, based on an agreed development schedule. PGOLD plans P18.5bn, 5-year expenditure Puregold (PGOLD) plans to spend P18.5bn in the next 5 years, to boost its network. PGOLD sees to construct 125 Puregold stores & 10 S&R stores, from 2015-2019. Half of PGOLD’s new stores will be built in Central & Southern Philippines. PGOLD also sees more aggressive expansion in Vis-Min, with earnings growth at 16%-18%, & probably slow to 15%, as the base becomes bigger. The company allots P100mn to build & stock-up PGOLD store, & P600mn for S&R outlet. 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 22 December 2014 SPH set 2015 capex at P69mn Splash’s (SPH) board has earmarked P69.19mn capex for 2015. No other data was given. Dividend Declaration Company Puregold Price Club (PGOLD) Regular Special Cosco Capital (COSCO) Regular Special Cash Div. Stock Div. Ex – Date Record Date Date Payable P0.20 P0.10 - 07-Jan-15 12-Jan-15 05-Feb-15 P0.06 P0.02 - 07-Jan-15 12-Jan-15 05-Feb-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.