Market Summary
The PSEi lost 9.11 points or 0.15% yesterday to close at 5,959.22.
Index decliners led gainers 15 to 12 while 3 issues were unchanged. Except for Services (+0.38%), all sectors closed lower yesterday led by the Property (-1.63%) sector.
Notable decliners were PCOR (-4.69%), SMC (-3.81%), RLC (-3.41%), ALI (-2.72%) and MBT (-1.75%).
On the other hand, significant gainers were BLOOM (+2.87%), JFC (+2.24%), MER (+1.90%), AGI (+1.56%), and GLO (+1.35%). Value turnover increased to Php7.1Bil from Php6.0Bil last Wednesday. Foreigners turned net buyers, accumulating Php188.0Mil worth of shares. SMDD, HP – Petition for voluntary delisting SMDC and Highland Prime (HP) have filed for voluntary delisting following the tender offer made by SM Land for shares it does not already own. As part of the merger plan of SMPH, SM Land has offered to buy all the shares of SMDC and HP it does not already own through a share swap using SMPH shares under its control. SM Land offered 0.472 shares of SMPH for every SMDC share and 0.135 SMPH share for every HP share. As of August 12, 2013, SM land has acquired 3.13 Bil shares of SMDC to bring its total holding to 9.17 Bil shares or 98.90% of SMDC. It also now has 99.85% of outstanding share of HP after the tender offer.
Property sector- SSS defers auction for Fort Boni lot
The auction date for the sale of an 8,300-sqm lot in Fort Bonifacio has been pushed back by the Social Security System (SSS) since it wanted more time to evaluate the eligibility of interested bidders. Currently on the shortlist are property developers Ayala Land Inc., Keyland Corp., the Net Group and Robinsons Land Corp.; real estate consultancy Jones Lang LaSalle; law firm Santiago & Santiago; and holding firm Clark Quay Holdings Inc. Property sector – 10 firms show interest in SCTEX service areas.
The Bases Conversion and Development Authority (BCDA) has named 10 firms that have expressed interest in the development and lease of two service areas along the Subic-Clark-Tarlac Expressway (SCTEX). The two service areas, which consist of two hectares each, are located in Barangay Santiago in Concepcion, Tarlac. Each lot would be leased for 25 years, renewable for another 25 years upon agreement of the BCDA and the winning bidder. The 10 firms who bought the Terms of Reference (TOR) for the lease and development of the Concepcion and Macangcung service areas were: Sea Oil Phils., Inc.; Inbound Pacific Freeport, Inc.; Manila North Tollways Corp.;
Sta. Maria Industrial Park, Corp.; FLG Management; Santeh Feeds Corp.; Phoenix Petroleum Phils., Inc.; Facilities, Inc.; Klean Fuel Auto LPG Refillers; and Pilipinas Shell Petroleum Corp. The deadline for the submission of the bids for the project initially scheduled for Sept. 6 has been moved to Sept. 10. MEG – Boosts Iloilo Business Park investment to Php35 Bil
Megaworld has increased its investment commitment in the 72-hectare Iloilo Business Park to Php35 Bil from Php25 Bil for the next 10 years. The higher investment follows the company’s expansion of the township from 54 hectares to 72 hectares last May. The business park will feature leisure, commercial, and residential components similar to all other township projects of MEG.
VLL – Expects Php80Bil in sales from Lakefront Vista Land stated that it expect to generate an aggregate sales of Php80Bil from its mixed-use community in Paranque which is in front of Laguna de Bay. The property company has allotted Php45Bil to develop the 60-hectare area. VLL added that they have already spent Php5Bil to develop 27 hectares in the area. The company has also allotted 10 hectares for commercial development in which they expect to put up BPO buildings.
Reiterate BUY rating.
We currently have a BUY rating on VLL with a fair value estimate of Php6.90/sh. We continue
to like VLL for its strong take-up sales and expanding margins. Economy – Inflation slows in August
The National Statistics Office reported that inflation decelerated to only 2.1% in August, below consensus forecast. At the same time, inflation was at the lower end of the range of BSP’s 1.9% to 2.7% estimate. The deceleration of inflation was brought about by the 0.3% decrease in prices of housing, electricity, gas and other fuels last August. At the same time, food and non-alcoholic beverages grew at a slow pace of 1.8%, lower than 2.3% last July. The National Capital Region (NCR) even saw a deflation of 0.1% last month. We have a favorable view on the low
inflation rate as this gives more room for the Bangko Sentral to keep interest rates low, which should be favorable for economic growth.
Data from Col Financial
