August 30, 2019

Market Summary Philippines Value Points % Change

Local shares rose on Thursday on window dressing ahead of the last trading day
of August. USD/PHP 52.180 (0.14) (0.27)
The bellwether Philippine Stock Exchange index (PSEi) climbed 0.57% or 45.31 PSEi 7,892.81 45.31 0.58
points to close at 7,892.81 yesterday, while the broader all-shares index likewise
added 0.35% or 16.96 points to finish Thursday’s session at 4,765.77. All 4,765.77 16.96 0.36
Financials 1,809.89 9.57 0.53
Five sectoral indices moved to positive territory, led by industrials which jumped
1.12% or 123.07 points to 11,066.87. Mining and oil went up 1.06% or 87.37 Holding Firms 7,842.85 65.34 0.84
points to 8,266.53; holding firms advanced 0.84% or 65.34 points to 7,842.85;
financials gained 0.53% or 9.57 points to 1,809.89; while services firmed up 0.14% Industrial 11,066.87 123.07 1.12
or 2.27 points to 1,575.43. Property was the lone loser for the day as it dropped
0.14% or 5.89 points to close the session at 3,990.86. Mining & Oil 8,266.53 87.37 1.07
(Business World)
Property 3,990.86 (5.89) (0.15)
Company Brief Services 1,575.43 2.27 0.14
Philippine Stock Exchange, Inc. (PSE) Last Price: 187.00
US
The Philippine Stock Exchange, Inc. (PSE) plans to buy back P532.01 million
worth of common shares from broker shareholders until September, in a bid to DJIA 26,362.25 326.15 1.25
reduce its broker ownership to less than 20%.
S&P 500 2,924.58 36.64 1.27
In a disclosure Thursday, the bourse operator said its board of directors has NASDAQ 7,973.39 116.51 1.48
approved a compliance plan that involves a share buyback program as well as the
creation of 3.5 million preferred shares. COMMODITIES

Under the buyback program, the PSE will buy common shares held by trading Dubai Crude 59.13 (0.02) (0.03)
participants until Sept. 30, unless otherwise extended by the board. The shares
Oil (WTI) 56.71 0.93 1.67
will be booked as treasury shares.
Gold 1,527.70 (11.28) (0.73)
“The buyback program shall be implemented in an orderly manner and should not
adversely affect the company’s and its subsidiaries’ prospective and existing Nickel 16,549.00 367.00 2.27
projects,” the PSE said. Source: Bloomberg
Prices as of: August 29, 2019

Meanwhile, the PSE also amended its articles of incorporation to include the Talking Points
creation of the 3.5 million preferred shares with a par value of P1 each. The The dollar extended gains after President Donald Trump said
exchange will ask consent from its shareholders for the amendment, which will Thursday that the U.S. and China are scheduled to have a
then be submitted to the Securities and Exchange Commission (SEC) for approval. conversation about trade, helping alleviate concern about the
rising tension between the two countries. Meanwhile, Treasury’s
The preferred shares may only be issued to brokers, in line with the group’s $32 billion 7-year auction flopped; its bid-to-cover ratio was the
ownership dilution in the bourse. The securities will be non-voting, be cumulative in lowest since issuance resumed in 2009. Treasuries extended
payment of dividends, non-participating in any further dividends, non-convertible, losses after the sale, though the 30-year clawed back.
and can be redeemed at the board’s discretion on its third anniversary date.
Currency Outlook
Local shares rose on Thursday on window dressing ahead of the last trading day USD/PHP at 52.18 signals further consolidation within the
of August. 52.25/52.50 levels. Look for another break of the 52.50 to signal
(Business World) the assault of the 52.95 levels. Expect the currency to trade within
World Highlights the 52.25/52.50 levels in the near-term.
US: U.S. stocks rallied more than 1% on Thursday, buoyed by gains in the trade-
sensitive technology and industrial sectors as China expressed hope on trade
negotiations with the United States, easing concerns that rising tensions could
stoke a recession.

The Dow Jones Industrial Average rose 326.15 points, or 1.25%, to 26,362.25, the
S&P 500 gained 36.63 points, or 1.27%, to 2,924.57 and the Nasdaq
Composite added 116.51 points, or 1.48%, to 7,973.39.

COMMODITIES: U.S. oil futures rose 1.7% on Thursday, lifted by a deep draw on
U.S. crude inventories, especially at the benchmark’s delivery hub due to
increased demand with the start-up of two new West Texas pipelines.

U.S. crude at 56.71. Gold is at 1,527.70.

(Reuters)

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