First Metro Asset Management Inc

Weekly Summary Equities (September 1 – 5, 2014)

PSEi rose to a new year-to-date high despite accelerating core inflation, net foreign selling

PSEI

 

Index Weekly YTD
PSE 7,263.58 3.02% 23.32%
All Shares 4,290.36 2.89% 18.70%
Financials 1,661.36 2.19% 16.34%
Industrial 11,286.58 4.65% 29.87%
Holdings 6,369.83 3.57% 17.32%
Property 2,767.23 3.40% 25.47%
Services 2,252.64 0.69% 20.72%
Mining & Oil 17,987.57 2.18% 50.93%

 

PSEi rose 213pts or +3.02% to a year-to-date high of 7,263 on better than expected inflation results. The country registered an inflation rate of 4.9% in August, lower than market consensus of 5% and within BSP’s forecast range of 4.7-5.5% for the month. However, core inflation rose from 3.05% to 3.4%. The inflation rate for the past eight months averaged at 4.4%, within the government’s forecast range of 3-5%. BSP will conduct its monetary board meeting on Sept. 11. PSEi has been on weekly net foreign buying streak from Feb 11-May 23 (PHP50.8bn), then fell to net foreign selling from May 26-June 6 (PHP1.27bn). It went back to net foreign buying on June 9-13 (PHP3bn) but reversed to net foreign selling on June 16-20 (PHP3bn). Net foreign buying was recorded from June 23-June 27 (PHP4.96bn) then went to a net foreign selling from July 14-August 8 (PHP5.3bn). It went to a three-week net foreign buying from Aug 11-29 (PHP16.28bn) before snapping the streak during the week amounting to PHP711mn in net foreign selling led by AGI (PHP742mn), ICT (PHP530mn) and PCOR(PHP396mn). Total value turnover amounted to PHP54bn during the week, of which 53% is attributed to foreign transactions. YTD, PSEi’s total value turnover amounted to PHP1.39tn with net foreign buying of PHP58bn. Foreign transactions comprised 51% of the total turnover.

 

Weekly Headlines:

  • DNL Industries, Inc. acquires Chemrez Technologies for PHP6.00/sh (total valuation of PHP7.8bn) via public tender offer (PHP5.1bn to be bought from the public)
  • First Philippine Holdings to bid for PHP24.4bn Bulacan Bulk Water Supply Project
  • Trans-Asia Petroleum Corporation to raise PHP500mn via rights offering between 4Q14 to 1Q15 to finance SC 50 and 52 engagements
  • Megawide, JG Summit and Aboitiz Equity Ventures to participate in PHP123bn Laguna Lakeshore expressway dike project

(Please find the attached file for further details.)
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First Metro Asset Management Inc