Alerts

   Andy dela Cruz

The BSP estimated that the country’s balance of payments (BoP) position in May continued to record a surplus of ~US$3.7Bil, continuing the turnaround from its US$3.5Bil deficit last November 2018. Furthermore, the BSP added that this May estimate for the BoP signals an improvement in the domestic economy in the second half of the year. According to the BSP, the Philippine economy continues to benefit from strong OFW remittances and receipts from BPOs, and these are helping fund the country’s current account deficit. In addition, the financial account was also bolstered in the recent quarter by positive investor sentiment given the country’s solid macroeconomic backdrop and prospects.

   Charles William Ang, CFA

PNB plans to offer 1 common share for every 4.516 shares priced at Php43.38/sh. The offer price is equivalent to a 20.7% discount to Friday’s closing price. Meanwhile, the ex-rights date was set on June 18, while the offer period will run from July 3 to 12. While, the additional capital from the offering is expected to boost the bank’s capital ratios. We currently have a BUY rating with a pre-rights FV estimate of Php62/sh. Our post-right FV estimate is Php58.62/sh.

   Adrian Alexander Yu

TEL announced that the company is currently in talks with five network providers for 5G network equipment as it targets to begin the commercial launch of the advance network by the fourth quarter. These network providers include Huawei Technologies Co. Ltd, ZTE Corp, Ericsson, Inc, Nokia, Corp. and Cisco Systems, inc. According to PLDT Chairman and CEO, Manuel V. Pangilinan, hopefully the 5G network can be rolled out for the fixed wireless for the home and enterprise segment. Mr. Pangilinan added that the company will target the home and enterprise segment initially as the technology for mobile gadgets are not yet widely available.

   Andy dela Cruz

In the results of the Banking Sector Outlook Survey of the BSP for the 2nd half of 2018, 70.2% of respondents (from 120 banks) sees stability for the banking sector supported by a strong economic outlook. While 28.6% project stronger banks and 86.1% sees the economy growing from 6 to 7% in the next 2 years.

   Andy dela Cruz

CHIB announced yesterday that it is planning to raise up to Php5.0 Bil from its bonds that would carry an annual interest rate of 5.70% which will be paid on a monthly basis. The public offer period started on June 10 and will last until June 28 of this year. With the bond offer, CHIB aims to provide retail investors with a good investment opportunity and enhance public participation in the capital markets while increasing CHIB’s funding flexibility. This bond offer is part of the company’s planned Php75 Bil fundraising program for the next three years.

   Andy dela Cruz

DNL said that given the low prices of commodities in 2Q19, consumers should have more purchasing power. Moreover, consumer spending is getting a boost from the influx of foreigners in the country. Given these developments, DNL said that the second quarter will be better for the company than the first quarter.

   Andy dela Cruz

The Confederation of Sugar Producers said mill gate sugar prices have remained stable in the pas few months, reiterating its opposition to the proposal calling for the liberalization of sugar imports. The confederation remains their stance that the local industry should be protected against imported sugar which have unfair advantages such as the Thai sugar industry which is subsidized by their government, leading to much cheaper sugar prices than the Philippines.

   Adrian Alexander Yu

JFC said that it is looking to open five stores over the next five years in Guam. According to JFC, Guam would be a great location for Jollibee given its growth as a business center and its strong diversity. The foray into Guam is also expected to contribute to the local economy through employment, where 100% of its staff will be Guam permanent residents and locals.

   Frances Rolfa Nicolas

The House of Representatives has frozen House Bill 4349, which seeks to renew the legislative franchise of ABS. The franchise will expire on March 20, 2020. The bill has been pending since November 2016 and the Committee on Legislative Franchises did not submit a report on it before the 17th Congress adjourned its third and last regular session on Tuesday. Renewal measure would have to be re-filed in the 18th Congress which will convene on July 22.

   Andy dela Cruz

According to the Board of Investments, project approvals rose by 40% for the first five months of the year driven by projects coming mostly from the power sector as it is essential to the Build Build Build program of the gov’t, followed by manufacturing, information and communication, and tourism sectors. Meanwhile, investment from domestic and foreign firms rose 11% and 869%, respectively.