Shares

Shares drop further before Fed policy decision

PHILIPPINE SHARES dropped on Wednesday to track Wall Street’s decline before the US Federal Reserve’s latest policy decision.

The Philippine Stock Exchange index (PSEi) fell by 6.93 points or 0.11% to end at 6,041.04 on Wednesday, while the broader all shares index went down by 2.64 points or 0.08% to close at 3,271.66.

“Philippine shares edged lower as Wall Street geared up for the latest interest rate decision and economic update from the Fed,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The Fed is widely expected to hold rates steady, but investors will be paying close attention to the summary of economic projections and the press conference of Fed Chair Jerome Powell for clues about what might happen in the months ahead,” Mr. Limlingan added.

Philstocks Financial, Inc. Research Analyst Claire T. Alviar likewise said in a Viber message that shares dropped in anticipation of the Fed’s decision.

“While the market mostly traded in the red and briefly dipped below the psychological level of 6,000, bargain hunters attempted to rally, but were unable to sustain the momentum, ultimately yielding to selling pressure. Foreigners continued to be net sellers, resulting in a net outflow of P1.02 billion,” Ms. Alviar said.

The Fed was set to announce its policy decision overnight after a two-day meeting.

Markets expect the US central bank to keep rates unchanged after it hiked its target rate by 25 basis points (bps) to the 5.25% to 5.5% range at its July meeting.

The Fed has hiked rates by a total of 525 bps since it began its tightening cycle in March 2022.

Wall Street lost ground on Tuesday, with risk-off sentiment weighing as the US Federal Reserve convened for its much-anticipated two-day monetary policy meeting, Reuters reported.

The Dow Jones Industrial Average fell 106.57 points or 0.31% to 34,517.73; the S&P 500 lost 9.58 points or 0.22% to 4,443.95; and the Nasdaq Composite dropped 32.05 points or 0.23% to 13,678.19.

Back home, the majority of sectoral indices rose on Wednesday. Mining and oil went up by 129.24 points or 1.25% to 10,454.79; services climbed by 8.35 points or 0.56% to 1,488.20; property increased by 12.06 points or 0.49% to 2,470.07; and industrials rose by 8.55 points or 0.09% to 8,701.17.

Meanwhile, holding firms dropped by 33.90 points or 0.58% to 5,747.78 and financials went down by 7.29 points or 0.41% to 1,760.17.

Value turnover rose to P5.26 billion on Wednesday with 542.64 million shares changing hands from the P3.65 billion with 596.63 billion issues on Tuesday.

Advancers outnumbered decliners, 100 versus 79, while 43 names closed unchanged.

Net foreign selling went up to P1.02 billion on Wednesday from P566.33 million on Tuesday. — SJT with Reuters

#Shares #drop #Fed #policy #decision

Shares dip as investors await key policy meetings

LOCAL STOCKS closed lower on Monday as investors await fresh leads ahead of the policy meetings of the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP) later in the week.

The Philippine Stock Exchange index (PSEi) went down by 1.77 points or 0.02% to end at 6,124.57 on Monday, while the broader all shares index dropped by 10.94 points or 0.33% to close at 3,309.24.

“The local bourse saw a slight decline,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message, citing “a lack of a strong catalyst” while investors wait for the BSP and Fed meetings.

“Philippines shares traded quietly to start the week, as investors await the main event this week, which is the [Monetary Board’s] policy-setting meeting on Sept. 21,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

BSP Governor Eli M. Remolona, Jr. said on Thursday that a policy rate hike might be unlikely if there were no further supply shocks after the acceleration in August inflation.

Previously, the BSP extended its policy hold for three straight meetings, keeping the key policy rate at 6.25%.

A BusinessWorld poll last week showed 14 of 17 analysts expecting the Monetary Board to keep benchmark rates steady during its sixth policy meeting for the year on Thursday.

Meanwhile, Mercantile Securities Corp. Head Trader Jeff Radley C. See said in a Viber message that “investors continue to stay on the sidelines and increase their cash position until the announcement of the Federal Reserve.”

The Federal Open Market Committee will hold its policy review on Sept. 19-20, a week after the release of the US consumer price index (CPI) report.

The Federal Reserve raised borrowing costs by 25 basis points (bps) in July, bringing the US central bank’s target to the range of 5.25% to 5.5%, Reuters reported.

It has hiked rates by a total of 525 bps since it began its tightening cycle in March last year.

Back home, sectoral indices were split on Monday. Mining and oil went down by 89.53 points or 0.85% to 10,396.08; financials dropped by 13.12 points or 0.73% to 1,773.81; and services lost 4.22 points or 0.28% to 1,490.34.

Meanwhile, property gained 10.18 points or 0.4% to 2,512.77; holding firms rose by 6.01 points or 0.1% to 5,865.33; and industrials increased by 2.51 points or 0.02% to 8,792.39.

Value turnover declined to P3.64 billion on Monday with 549.70 million shares changing hands from the P9.07 billion with 1.55 billion issues seen on Friday.

Decliners outnumbered advances, 121 versus 58, while 52 names closed unchanged.

Net foreign selling dropped to P419.26 million on Monday from P2.48 billion on Friday. — Sheldeen Joy Talavera with Reuters

#Shares #dip #investors #await #key #policy #meetings

Shares inch higher as market awaits key US data

PHILIPPINE SHARES inched up on Monday ahead of the release of August US consumer price index (CPI) data that could affect the US Federal Reserve’s policy decision this month.

The benchmark Philippine Stock Exchange index (PSEi) went up by 10.80 points or 0.17% to end at 6,233.74 on Monday, while the broader all shares index rose by 3.22 points or 0.09% to close at 3,363.45.

“Philippine shares were bought up as investors look to a fresh new batch of economic data that could influence price action activity. For the week ahead in the US, investors are looking forward to key inflation data,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Local stocks moved sideways with no major catalyst to move the market either way. Investors also opted to stay on the sidelines, anticipating the release of US CPI data, which is expected to provide clearer insights into the direction of US monetary policy,” AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message.

August US CPI data will be released on Wednesday.

The US CPI rose 0.2% in July, matching June’s gain. On an annual basis, the CPI advanced by 3.2%.

The US central bank raised borrowing costs by 25 basis points (bps) in July, bringing its target rate to a range between 5.25% and 5.5%.

It has hiked rates by 525 bps since it began its tightening cycle in March last year.

The Federal Open Market Committee will hold its policy meeting on Sept. 19-20.

“Meanwhile, it’s going to be a relatively quiet week for us here in the Philippines. The only economic data due for this week is the remittances [report],” Mr. Limlingan added.

The Bangko Sentral ng Pilipinas (BSP) is scheduled to release July remittance data on Friday.

In June, cash remittances coursed through banks inched up by 2.1% to $2.81 billion from $2.75 billion in the same month last year, BSP data showed.

For the first six months of 2023, cash remittances rose by 2.9% to $15.79 billion.

Sectoral indices were split on Monday. Mining and oil climbed by 188.54 points or 1.87% to 10,266.96; industrials went up by 94.04 points or 1.06% to 8,910.16; and services rose by 4.17 points or 0.27% to 1,538.10.

Meanwhile, financials fell by 5.20 points or 0.29% to 1,788.26; property declined by 2.77 points or 0.1% to 2,586.13; and holding firms dropped by 4.32 points or 0.07% to 5,979.78.

Value turnover went down to P3.62 billion on Monday with 639.89 million shares changing hands from the P3.85 billion with 445.34 million issues seen on Friday.

Decliners outnumbered advancers, 103 to 95, while 41 names closed unchanged.

Net foreign selling rose to P504.93 million on Monday from P347.89 million on Friday.

For this week, Mr. Vistan placed the PSEi’s support at 6,120 and resistance at 6,350. — S.J. Talavera

#Shares #inch #higher #market #awaits #key #data

GSIS to keep MPIC stake beyond delisting after buying more shares

STATE-LED Government Service Insurance System (GSIS) said that it plans to remain a shareholder of Metro Pacific Investments Corp. (MPIC) even after the completion of the latter’s voluntary delisting.

“The GSIS is aware that a petition for voluntary delisting of MPIC has been filed with the Philippine Stock Exchange (PSE). The GSIS intends to remain a shareholder of MPIC after the completion of the voluntary delisting,” GSIS Corporate Secretary and Chief Compliance Officer Luz Victoria F. Reyes Morando said in a letter to the stock exchange on Wednesday.

The letter was disclosed by MPIC to the local bourse. The firm’s tender offer deadline will conclude on Sept. 7 while it is expected to be delisted on Oct. 9.

The GSIS’ letter followed its recent acquisition of additional common shares in MPIC, which resulted in an aggregate holding of 3,438,549,098 common shares, equivalent to 12% of the company’s total issued and outstanding listed shares.

With this, the pension fund said its MPIC stocks are now deemed nonpublic shares.

“The GSIS understands that based on the PSE Rule on minimum public ownership, any shareholders with a holding of 10% or greater of total issued and outstanding shares shall be considered nonpublic. Pursuant to this rule, the GSIS understands that its shares in MPIC are now considered nonpublic shares,” it said.

“The GSIS shall furnish the initial statement of beneficial ownership of securities to MPIC and the PSE once filed with the Securities and Exchange Commission (SEC).”

Sought for comment, China Bank Capital Corp. Managing Director Juan Paolo E. Colet said the GSIS’ move to acquire more MPIC shares “caught many investors by surprise given its speed, scale, and context.”

“While we can only speculate on the rationale, it appears to be a strategic move to give GSIS enough leverage to influence the take-private plans of MPIC and potentially get a much better financial outcome for the state pension fund,” Mr. Colet said.

He added that there is a possibility that MPIC’s planned voluntary delisting would not push through or “may eventually push through under different terms.”

Aside from the GSIS, another state-led agency that has a stake in MPIC is the Social Security System (SSS), which has 645,397,300 common shares as of the listed firm’s latest list of top 100 stockholders of common shares dated July 12.

Asked about this, Mr. Colet said it could be possible that the two agencies could partner to create a “government voting block” but said that the SSS is not expected to purchase more MPIC shares.

“I don’t expect SSS to do something similar, but the situation is fluid and it’s possible that they can partner with GSIS to create a ‘government voting block’ in MPIC,” Mr. Colet said via mobile phone.

“It would promote consensus decision-making since the interests of all parties would have to be considered,” he added.

Mr. Colet said the shares held by the GSIS would reduce the MPIC’s public float.

“Depending on the resulting float, MPIC may be removed from the index. If it falls below 10%, trading of shares will be suspended and it will be a ground for delisting,” Mr. Colet said.

In July, the consortium of companies that intend to acquire greater control over MPIC and take it private sent a higher tender offer price of P5.20 per share.

The new offer went up by 12.3% from the P4.63 per share initially offered by the consortium, which is backed by First Pacific Co. Ltd., GT Capital Holdings, Inc. and Mitsui & Co. Ltd.

MPIC is one of the three key Philippine units of Hong Kong-based First Pacific, the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls.

On Wednesday, shares of MPIC at the local bourse fell ten centavos or 1.96% to end at P5 apiece. — Revin Mikhael D. Ochave

#GSIS #MPIC #stake #delisting #buying #shares

Philippine shares rise further on increased buying

PHILIPPINE SHARES continued to climb on Wednesday amid increased buying and as the market awaits the release of US data that could affect the next move of the US Federal Reserve.

The Philippine Stock Exchange index (PSEi) rose by 16.69 points or 0.26% to end at 6,241.69 on Wednesday, while the broader all shares index went up by 8.11 points or 0.24% to close at 3,368.25.

“Investors are slowly buying into the market as we see buying pressure at this level. It’s not that significant yet due to the low value turnover as compared to months before,” Mercantile Securities Corp. Head Trader Jeff Radley C. See said.

Value turnover went up to P3.84 billion on Wednesday with 459.94 million shares changing hands from the P3.41 billion with 437.48 million issues seen on Tuesday.

“Philippine shares still managed to eke out modest gains despite rising oil prices after Saudi Arabia and Russia extended their voluntary supply cuts… On Wednesday, investors await the release of the Beige book, as well as economic data releases on the US trade deficit and services industry,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Saudi Arabia and Russia on Tuesday said they would extend voluntary oil cuts to the end of the year, despite a rally in the oil market and analyst expectations of tight supply in the fourth quarter, Reuters reported.

Oil prices rose sharply following the news, with Brent rising above $90 a barrel for the first time since November, despite steady increases in Iranian and Venezuelan oil exports as the market believes the United States is not enforcing sanctions as stringently as in previous years.

The Saudi and Russian voluntary cuts are on top of the April cut agreed by several OPEC+ (Organization of the Petroleum Exporting Countries and its allies) producers, which extends to the end of 2024.

Mr. See added that the market is monitoring Metro Pacific Investments Corp.’s (MPIC) delisting plans.

Most sectoral indices went up on Wednesday. Holding firms rose by 42.83 points or 0.71% to 6,027.28; services gained 6.29 points or 0.41% to end at 1,517.51; industrials went up by 15.02 points or 0.17% to 8,834.67; and financials climbed by 1.17 points or 0.06% to 1,820.

Meanwhile, mining and oil fell by 109.85 points or 1.07% to 10,136.06 and property declined by 8.52 points or 0.33% to 2,572.49.

Decliners outnumbered advancers, 95 to 91, while 40 names closed unchanged.

Net foreign selling declined to P663.89 million on Wednesday from P669.21 million on Tuesday.

MPIC is one of the three key Philippine units of Hong Kong-based First Pacific, the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — SJT with Reuters

#Philippine #shares #rise #increased #buying

AbaCore approves to buy back shares amid ‘unwarranted’ stock price decline

LISTED holding company AbaCore Capital Holdings, Inc. has approved a share buyback program policy, citing an “unwarranted drop” in its stock price.

In a statement on Tuesday, the company said its stock price is “undervalued in terms of the price-to-book value ratio and the income potential of its projects and investments.”

“We are pursuing this buyback program policy because we believe our stock has strong long-term fundamentals. As such, buying back our stock institutes our confidence in the company’s future,” AbaCore Vice-Chairman Antonio Victoriano F. Gregorio III said.

AbaCore recently sold a property at Brgy. Inosluban in Lipa, Batangas to Eternal Gardens that resulted in a P99.4 million net gain. The company previously sold its Mataas-na-Kahoy properties in Lipa for P108.9 million, which had a gross gain of P70.4 million.

As a result of the transactions, the company recorded a P384.6 million net income as of August, a turnaround from the P15.5 million net loss in the first half of last year.

AbaCore also bought a property in Silang, Cavite which will be used for any venture with existing or future business partners as part of replenishing its inventory of investment properties.

The company’s board also took note of the progress made with the memorandum of agreement signed with Highsource Prime Building, Inc. to construct various projects at the Montemaria Shrine in Batangas. The progress includes refurbishing the existing hotel at the shrine, building new roads to ensure accessibility to all facilities and opening new restaurants.

Meanwhile, AbaCore said it is looking forward to the potential income from the agreement signed by Pacific Online Systems Corp. with the Philippine Charity Sweepstakes Office (PCSO) to build an online betting platform.

Under the agreement, Pacific Online will get 14% of the gross revenues by serving as the PCSO’s exclusive agent. The agreement covers a one-year trial period. AbaCore has a 4.89% stake in Pacific Online.

“This 2023, we are pleased to announce more business ventures across the markets we operate in. We believe these initiatives will solidify our long-term fundamentals and allow us to fulfill our growth prospects,” Mr. Gregorio said.

AbaCore is a holding company that has business interests in tourism, real estate, financial services, and energy.

Shares of AbaCore on Tuesday increased 10 centavos or 8.06% to finish at P1.34 apiece. — Revin MIhkael D. Ochave

#AbaCore #approves #buy #shares #unwarranted #stock #price #decline

Shares rise on dovish Fed bets ahead of CPI data

PHILIPPINE STOCKS went up on Monday, tracking US shares’ rise, on bets that the US Federal Reserve is done hiking rates and as investors await the release of August Philippine inflation data.

The Philippine Stock Exchange index (PSEi) went up by 33.62 points or 0.54% to close at 6,214.68 on Monday, while the broader all shares index rose by 14.47 points or 0.43% to end at 3,356.44.

“This increase was attributed to positive cues from Wall Street last Friday, where higher unemployment rates provided investors with optimism that the Federal Reserve might consider pausing its monetary tightening measures in response to the data,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

US stock indexes settled for a mixed close after a US jobs report showed an uptick in unemployment, cementing expectations that the Fed will let interest rates stand at its September meeting, Reuters reported.

The Dow Jones Industrial Average rose 115.80 points or 0.33% to 34,837.71; the S&P 500 gained 8.11 points or 0.18% to 4,515.77; and the Nasdaq Composite dropped 3.15 points or 0.02% to 14,031.81.

The Labor department’s payrolls report showed the US economy added more jobs than expected last month, but the rising unemployment and participation rates, along with a welcome cool-down in average hourly wage growth, solidified expectations that the Fed will let key interest rates stand this month.

“Philippine shares were bought up ahead of the local CPI (consumer price index) [on Tuesday], and as others started taking positions with the week ahead,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

A BusinessWorld poll of 18 analysts yielded a median estimate of 4.9% for August headline inflation, near the lower end of the central bank’s 4.8% to 5.6% forecast for the month.

If realized, this would be faster than the 4.7% print in July, but lower than the 6.3% seen in August 2022.

It would mark the 17^th straight month of inflation exceeding the Bangko Sentral ng Pilipinas’ 2-4% target for the year.

Sectoral indices rose on Monday except for financials, which dropped by 3.07 points or 0.16% to 1,833.81.

Meanwhile, property rose by 37.70 points or 1.46% to 2,604.86; mining and oil went up by 136.43 points or 1.36% to 10,132.72; holding firms increased by 41.86 points or 0.71% to 5,910.55; services gained 4 points or 0.26% to end at 1,507.30; and industrials climbed by 23.13 points or 0.26% to 8,759.89.

Value turnover went down to P11.32 billion on Monday with 2.30 million shares changing hands from the P11.51 billion with 2.11 million issues seen on Friday.

Advancers outnumbered decliners, 94 to 82, while 42 names closed unchanged.

Net foreign selling went down to P1.20 billion on Monday from P5.69 billion on Friday. — SJT with Reuters

#Shares #rise #dovish #Fed #bets #ahead #CPI #data

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