TUESDAY, 20 JANUARY 2015

(As of January 19, 2015)

INDICES
INDICES
NEWS: Close Points % YTD%
PSEi 7,485.32 -5.56 -0.07 27.09
All Shares 4,384.61 8.36 0.19 21.31
TA: Subsidiary to develop 40MW wind project Financials 1,720.57 6.36 0.37 20.49
Holding Firms 6,619.04 -19.91 -0.30 21.91
Economy: Moody’s upgrade global airline industry outlook to positive from stable Industrial 12,194.67 -11.42 -0.09 40.32
Economy: Php2.5Bil ITS-Southwest PPP project to be awarded within the week Mining & Oil 16,908.87 184.77 1.10 41.88
Property 2,925.68 14.42 0.50 32.66
Economy: Remittances seen resilient against plunge in oil prices – BSP Services 2,158.37 -16.71 -0.77 15.67

Dow Jones 17,511.6 190.9 1.10 5.64

S&P 500 2,019.4 26.8 1.34 9.25
MARKET SUMMARY: Nasdaq 4,634.4 63.6 1.39 10.96

The PSEi ended slightly lower as investors took pro¿ts following the market’s recent rally to new
highs. The main index lost 5.56 points or 0.07% to close at 7,485.32.
INDEX GAINERS
Index decliners led gainers by a slim margin at 15 to 14, while 1 issue closed unchanged. Sector
INDEX GAINERS
performance was mixed last session, with Services (-0.77%) leading the three decliners, and
TickerCompany Price %
Mining & Oil (+1.10%) leading three gainers. Signi¿cant decliners were EDC (-3.68%), MPI
SMPH SM Prime Hldgs Inc 18.78 4.92
(-2.91%), MEG (-2.04%), TEL (-1.54%), and DMC (-1.17%). Meanwhile, notable gainers were EMP Emperador Inc 10.32 4.67
SMPH (+4.92%), EMP (+4.67%), and PCOR (+4.52%). PCOR Petron Corporation 9.95 4.52
MER Manila Electric Co 274.00 2.62
GTCAP GT Capital Hldgs Inc 1130.00 2.36
Value turnover decreased to Php8.1 Bil from Php 13.5 Bil the previous session. Foreigners were
net buyers for the ¿fth session in a row, with net buying amounting to Php263 Mil.

INDEX LOSERS
INDEX LOSERS
Ticker Company Price %
EDC Energy Dev't Corp 8.63 -3.68
MPI Metro Pacific Inv Corp 5.00 -2.91
MEG Megaworld Corp 5.28 -2.04
TEL Phil Long Distance Co 2,950.00 -1.54
DMC DMCI Hldgs Inc 15.26 -1.17

TOP 5 MOST ACTIVE STOCKS

TOP 5 MOST ACTIVE STOCKS
Ticker Company Turnover
MBT Metrobank 751,310,000
SMPH SM Prime Hldgs Inc 723,784,300
URC Universal Robina Corp 564,885,700
ALI Ayala Land Inc 554,366,500
SM SM Investments Corp 428,884,400
 P H I L I P P I N E EQ U I T Y RESEA R C H

NEWS:

TA: Subsidiary to develop 40MW wind project

Trans Asia Renewable Energy Corp. (TAREC), a wholly-owned subsidiary of TA , has announced
Jed Frederick Pilarca
plans to develop a 40MW wind project in Sibunag, in Guimaras Island. According to management,
Garie Ouano
TAREC will only proceed with the project if the feed-in-tariff (FIT) scheme would apply to the project.
The FIT scheme is a set of incentives given to renewable energy developers. Under the FIT scheme, Meredith Hazel Cua
the applicable FIT rate for the wind project would be Php8.53 per kwh. The Department of Energy
has already given TAREC permission to conduct a grid impact study on the wind project. (source: Philstar)

Economy: Moody’s upgrade global airline industry outlook to positive from stable
Moody’s Investors Service upgraded its global airline industry outlook to positive from stable due to
the sharp decline in fuel costs. Moody’s expects the operating pro¿t margins of the industry to settle
at 12 to 14% in 2015 and 11.5% to 13.5% next year. Passenger demand would also increase due to
steady economic growth, higher disposable incomes and rising air travel in developing economies.
Passenger demand, measured by revenue passenger kilometer (RPKs), is estimated to grow by 5%
in 2015 and 6% in 2016. Meanwhile, projected yields are at Àat to two percent in 2015 and one to
three percent in 2016. The agency said that US carriers will continue to garner the largest increases,
as savings are unlikely to be passed on to customers as record-high load factors and sustained
demand lessen the incentive to do so. For Asia, longer haul Àights will see fares decline, where fuel
charges are more prevalent and regulated by some governments. (source: PhilStar)

Economy: Php2.5Bil ITS-Southwest PPP project to be awarded within the week

According to DoTC Undersecretary Jose Perpetuo Lotilla, the agency is set to announce the
winner for the Php2.5Bil Integrated Transport System – Southwest Terminal within the week. The
announcement will come after a careful evaluation of the bids submitted by MWM Terminals led
by Megawide Construction Corp. and Filinvest Land. MWM Terminals submitted an annual grantor
payment (AGP) of Php100Mil while Filinvest Land offered Php650Mil. DoTC Spokesperson Michael
Arthur Sagcal explained that AGP are payments to be made by the government to the concessionaire.
He said that the lowest AGP wins, but is subject to evaluation of the bid. The proposed transportation
hub is to be situated in a 4.6-hectare property at the Coastal Road Terminal along the Manila-Cavite
Expressway, which would connect passengers coming from Cavite to other transport systems such
as the future LRT 1 South Extension, city bus, taxi and other public utility vehicles. (source: PhilStar)

Economy: Remittances seen resilient against plunge in oil prices – BSP

The plunge in global oil prices is not expected to slow remittance growth in the short run, according
to BSP Deputy Governor Diwa Guinigundo. With an estimated 27% of10.489Mil OFWs working in
the Middle East, the sharp decline in oil prices has raised concerns over a possible impact on OFW
remittances. Nonetheless, Deputy Governor Guinigundo said that because member countries of the
OPEC in the Middle East operate at lower breakeven prices, they can afford to absorb the impact of
the 50% decline in oil prices. On the other hand, the central bank of¿cial noted that Philippine exports
could be at risk as the spending power of oil-producing countries weakens. (source: BusinessWorld)

WEDNESDAY, 17 DECEMBER 2014

TUESDAY, 20 JANUARY 2015 page 2

 P H I L I P P I N E EQ U I T Y RESEA R C H

Calendar of Key Events

JANUARY
MON TUES WED THURS FRI SAT
29 30 31 1 2 3

HOLIDAY HOLIDAY

5 6 7 8 9 10
PSB: Ex-date Php0.75 GTCAP: Annual
Cash Dividend Shareholders Meeting
PGOLD: Ex-date
Php0.30 Cash Dividend
COSCO: Ex-date
Php0.08 Cash Dividend

12 13 14 15 16 17
RCI: Ex-date Php0.02
Cash Dividend
SPECIAL NON- SPECIAL NON-
WORKING HOLIDAY WORKING HOLIDAY

19 20 21 22 23 24
NOW: Annual
Shareholders Meeting
SPECIAL NON-
WORKING HOLIDAY

26 27 28 29 30 31

TUESDAY, 20 JANUARY 2015 page 3

 P H I L I P P I N E EQ U I T Y RESEA R C H

Investment Rating De¿nitions

BUY HOLD SELL

Stocks that have a BUY rating have attractive
fundamentals and valuations, based on
our analysis. We expect the share price
to outperform the market in the next six to
twelve months.
Stocks that have a HOLD rating have either We dislike both the valuations and
1.) attractive fundamentals but expensive fundamentals of stocks with a SELL rating.
valuations; 2.) attractive valuations but We expect the share price to underperform in
near term earnings outlook might be poor the next six to twelve months.
or vulnerable to numerous risks. Given the
said factors, the share price of the stock may
perform merely inline or underperform the
market in the next six to twelve months.

Important Disclaimers

Securities recommended, offered or sold by COL Financial Group, Inc.are subject to investment risks, including the possible loss of the principal amount
invested. Although information has been obtained from and is based upon sources we believe to be reliable, we do not guarantee its accuracy and it may
be incomplete or condensed. All opinions and estimates constitute the judgment of COL’s Equity Research Department as of the date of the report and are
subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of a
security. COL Financial ans/or its employees not involved in the preparation of this report may have investments in securities or derivatives of securities of
securities of the companies mentioned in this report, and may trade them in ways different from those discussed in this report.

WEDNESDAY, 17 DECEMBER 2014

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TUESDAY, 20 JANUARY 2015 page 4