Daily Notes INDEX

DAILY MARKET STATS

VALUE PTS PCT YTD

Friday, July 03, 2020
PSEI 6,364.08 154.37 2.49% -18.57%
Reference: Claire T. Alviar ALL 3,716.98 66.23 1.81% -20.06%

Philippine Seven Corporation [pse:SEVN] FIN 1,276.99 41.13 3.33% -31.48%

IND 7,996.29 182.13 2.33% -17.01%

HOLD (NEUTRAL) TP (TA): Php 131.00 HDG 1,431.39 -4,982.16 -77.68% -81.15%

PRO 3,144.01 71.77 2.34% -24.32%

SVC 1,431.39 34.02 2.43% -6.51%

STOCK SNIPPETS
M&O 5,192.20 -27.17 -0.52% -35.84%
Last Traded Price (PHP) 126.50
ASIAN MARKETS
P/E Ratio (x) 66.58 • Store closure to significantly hit (AS 02:00 PM)

P/B Ratio (x) 11.76

financial performance. INDEX VALUE PTS PCT YTD

Support 125
• Many franchise stores are unprofita- Nikkei 225 22,099.70 -22.03 -0.10% -6.58%
ble. Hang Seng 24,801.58 374.39 1.53% -12.02%
Resistance 131
• The Philippine Seven Corporation Shanghai 3,067.64 41.66 1.38% 0.57%
MTD Performance (%) -1.94 allotted funds to support fran- KOSPI 2,123.72 17.02 0.81% -3.36%
YTD Performance (%) -10.92 chisees.
HCM 839.53 -3.96 -0.47% -12.64%

SET 1,365.55 16.11 1.19% -13.56%

STI 2,612.10 1.93 0.07% -18.95%

OUR VIEW KLCI 1,521.20 6.77 0.45% -4.25%

JCI 4,946.63 32.24 0.66% -21.48%

INTERNALS
VOL 761,371,018 ADV 132

VAL 7,349,768,924.68 DEC 61

BLOCK 162,522,221.40 UNCH 46

Trade cautiously as hopes for coronavirus vaccine and economic recovery are expected to give
boost to the market sentiment. 20-day and 50-day exponential moving average (EMA) are the
PSEi’s dynamic support while resistance is peg around 6,567.00 level.

TOP 5 GAINERS TOP 5 LOSERS

FGEN 8.00%

BPI 4.90%

MBT 4.53%
Source: TradingView
BLOOM 3.91%

MARKET WRAP TEL 3.83%

OTHER MARKET SNAPSHOTS

The PSEi surged 154.37 points or 2.49%, to 6,364.08 as sentiment was boosted by the positive Brent Crude 42.20 0.40%
results from the early stage human trial of Covid-19 vaccine, which was done by Pfizer and BioN-
WTI Crude 39.95 0.33%
Tech. Value turnover registered at P7.34 billion. Advancers outpaced decliners at 132 to 61, while
46 issues were unchanged. Gold 1,776.45 -0.19%

Silver 18.18 -0.16%

Except Miners (-0.52%), all sectors gained in the session, with Banks climbing 3.33% to 1,276.99.
Copper 2.73 0.11%
Followed by Services, +2.43% to 1,431.39.
US$:Php 49.75 -0.16%
All index member stocks were in the green, led by First Gen Corporation [pse:FGEN] surging 8%,
US 10 Yr Yield 0.69% 5.00%
to P27.00. Jackstones, Inc [pse:JAS] hit the ceiling price of P2.40.

Asian stocks were up following positive news about the potential coronavirus vaccine, however,
tensions will be watched after the controversial national security law went into effect.

Philstocks Research 2020 1 |Page

LOCAL NEWS Philstocks Research
JUSTINO B. CALAYCAY, JR
Philippines to lose 7% of GDP if the pandemic extends to 12 months. The United Nations AVP-Head, Research & Engagement
Conference on Trade and Development (UNCTAD) said that the tourism sector is losing P383.7 +63 (2) 8588-1962
billion or 2% of the Philippine GDP as it forced to shut down for four months, and if this extends to
eight months, estimated loss is at P792.3 billion. The Department of Tourism, meanwhile, said the JAPHET LOUIS O. TANTIANGCO
revenues declined by 55% in the first four months of 2020 to P79.8 billion. Sr. Research Analyst
+63 (2) 8588-1927
Fundamental-wise, avoid stocks under tourism sector this year given the expected losses from the
industry amid the restrictions due to Covid-19 pandemic. Rebound will only happen if coronavirus PIPER CHAUCER E. TAN
cases contained which could permit further inessential activities. Engagement Officer/Research Associate
+63 (2) 8588-1928

CLAIRE T. ALVIAR
Research Associate
+63 (2) 8588-1925
GLOBAL NEWS
Ground Floor, East Tower
Positive results from early stage human trial on Covid-19 vaccine. Pfizer released positive data PSE Center, Tektite Towers
from the trial, evaluating 45 people, each participant received 10, 30 or 100 microgram doses of the Ortigas Center, Pasig City
vaccine. The company said that one of its four Covid-19 vaccine candidates produced neutralizing PHILIPPINES
antibodies in all participants who received two of the 10 or 30 microgram doses after 28 days.
Neutralizing antibodies were 1.8 to 2.8 times higher than in recovered Covid-19 patients, according DISCLAIMER
to the preliminary data released on MedRXiv. The vaccine was well tolerated, but experimental The opinion, views and recommendations
vaccine caused fever in some patients, particularly those in 100 microgram group. contained in this material were prepared by
the Philstocks Research Team, individually
Initial impact will be on investors’ sentiment which could be boosted, leading to market rally. and separately, based on their specific
However, the problem with it, is that they are pricing in the expectation which if it failed to meet, sector assignments, contextual framework,
steep sell-off may follow. Be cautious riding on the momentum, particularly if it is driven by hopes. personal judgments, biases and prejudices,
time horizons, methods and other factors.
The reader is enjoined to take this into
COMPANY NEWS account when perusing and considering the
contents of the report as a basis for their
stock investment or trading decisions.
HOLD (Neutral) Philippine Seven Corporation [pse:SEVN] Furthermore, projection made and presented
in this report may change or be updated in
SEVN has allocated P711 million as loan to its franchisees as a pandemic support program of the between the periods of release. Ergo, the
company. The loans are interest –free and they may borrow as needed and pay when able or if situa- validity of the projections and/or estimates
tion improves. 22% of its 2,916 stores were closed as of end April, 11% were closed as of end May. mentioned are good as of the date indicated
and may be changed without immediate
Unprofitable stores are mounting right now due to the pandemic.
notification.
Closure of 7-11 stores will significantly hit earnings for this year. Despite the essential goods it is offer- This report is primarily intended for
ing, we think that consumer demand from its products would remain weak as most companies are only information purposes only and should not be
at 30% -50% capacity, while others implemented work from home set-up. considered as an exclusive basis for making
investment decision. The recommendations
Target Price (TA): Php 131.00 contained in this report is not tailored-fit any
particular investor type, situation, or
objective and must not be taken as such.
Determining the suitability of an investment
Other news: remains within the province of the investor.
Our estimates are based on information we
AC Energy, Inc. [pse:ACEPH] issues US$60 million five-year senior Green Bonds due 2024, via pri- believe to be reliable. Nevertheless, nothing
vate placement. in this report shall be construed as an offer
of a guarantee of a return of any kind and at
DMCI Holdings, Inc.[pse:DMC]: DFC Holdings, Inc, a substantial shareholder of DMC, bought any time.
2,696,000 DMC shares at P4.1043, amounting to P11,065,192.80 on June 30, 2020.

ABS-CBN Corporation [pse:ABS]: The company will stop its TV transmission of TVplus channels Cine-
mo, Yey, TeleRadyo, Jeepney TV, Asianovela Channel, and KBO. Rating Definitions:
BUY - More than 15% upside base on the target price
in the next 9-12 months

HOLD - 15% or less upside or downside in the next

9-12 months

SELL - More than 15% downside base on the target

price in the next 9-12 months
TRADE - A potential 10% and above short-term upside
base on entry price and selling price.

Philstocks Research 2020 2 |Page