Daily Notes INDEX

DAILY MARKET STATS

VALUE PTS PCT YTD

Wednesday, July 08, 2020
PSEI 6,267.40 -61.01 -0.96% -19.81%
Reference: Claire T. Alviar ALL 3,677.83 -24.34 -0.66% -20.90%

Metro Pacific Investments Corp. [pse:MPI] FIN

IND
1,241.89

7,858.27
2.18

-71.72
0.18%

-0.90%
-33.36%

-18.44%

TRADE TP: Php 3.90—4.30 HDG 6,518.82 -13.71 -0.21% -14.14%

PRO 3,070.28 -70.47 -2.24% -26.10%

SVC 1,432.39 -18.68 -1.29% -6.45%

STOCK SNIPPETS
M&O 5,473.23 14.32 0.26% -32.36%
Last Traded Price (PHP) 3.61

P/E Ratio (x) 5.16

• Its utility segments to support the ASIAN MARKETS (AS 03:30 PM)

company’s earnings. INDEX VALUE PTS PCT YTD

P/B Ratio (x) 0.61
• Through its wholly-owned subsidiary Nikkei 225 22,614.69 -99.75 -0.44% -4.40%
Support 3.60 MPCALA Holdings Inc. (MPCALA), Hang Seng 26,022.24 -316.92 -1.20% -7.69%
Resistance 3.90 it paid the second tranche of con-
Shanghai 3,345.34 12.46 0.37% 9.68%
MTD Performance (%) -2.43
cession fee amounting to P4.36
billion for the Cavite-Laguna Ex- KOSPI 2,164.17 -23.76 -1.09% -1.52%
YTD Performance (%) 3.74 pressway (CALAX). HCM 865.95 4.79 0.56% -9.89%

SET 1,390.59 18.32 1.34% -11.98%

STI 2,670.51 -19.10 -0.71% -17.14%

OUR VIEW KLCI 1,568.78 -8.12 -0.51% -1.26%

JCI 4,991.13 2.27 0.05% -20.77%

INTERNALS

VOL 1,475,446,653 ADV 99

VAL 7,592,056,038.06 DEC 96

BLOCK 267,154,511.55 UNCH 46

Trade cautiously amid the mounting Covid-19 cases in the country which we expect to bring nega-
tive sentiment further. Money supply grew quicker by 16.6% y/y, vs. 16.2% in April. However, slow-
er expansion in bank lending was also recorded.

Psychological support is at 6,000 level, while resistance is around 6,580.00.

TOP 5 GAINERS TOP 5 LOSERS

LTG 2.68% FGEN –5.64%

SM 0.96% SMPH –3.67%

AP 0.89% GLO –3.64%

Source: TradingView
AEV 0.61% MEG –3.07%

MARKET WRAP BDO 0.51% MPI –2.43%

OTHER MARKET SNAPSHOTS

PSEi ended lower by 61.01 points or 0.96%, to 6,267.40 as worries over the rising cases of Covid- Brent Crude 42.69 -0.95%
19 worsened. The uptick on inflation rate of 2.5% in June, added on the negative sentiment as this
WTI Crude 40.19 -1.08%
was driven by the normalization of oil prices and weaker demand. Value turnover was at P7.59
billion. Advancers edged decliners at 99 to 96, while 46 issues were unchanged. Gold 1,792.35 -0.06%

Silver 18.41 -0.88%

Miners had the biggest gain of 0.26% to 5,473.23 while Properties declined the most by 2.24% to
Copper 2.76 -0.71%
3,070.28.
US$:Php 49.53 0.31%
In the index, LT Group, Inc. [pse:LTG] led the index gainers, up 2.68% to P8.44 while First Gen
US 10 Yr Yield 0.69% 1.00%
Corporation [pse:FGEN] was at the bottom, losing 5.64% to P24.25.

Philstocks Research 2020 1 |Page

LOCAL NEWS Philstocks Research
JUSTINO B. CALAYCAY, JR
Consumption remains weak –BSP. Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno AVP-Head, Research & Engagement
sees household spending to remain weak given the uncertainties over the coronavirus pandemic that +63 (2) 8588-1962
weigh on consumer sentiment. He expects that the second quarter of 2020 contraction will be deeper
on the back of dampened domestic demand and lower production activity. For the third quarter, he JAPHET LOUIS O. TANTIANGCO
forecasts the economy to still be in contraction ,but lesser damage than the Q2 following the Sr. Research Analyst
resumption of businesses. +63 (2) 8588-1927

In line with this is the dim outlook for the consumer stocks from firms offering inessential goods even PIPER CHAUCER E. TAN
up to restaurants. For the food and beverage sector in the market, we’re expecting lower earnings for Engagement Officer/Research Associate
this year, particularly in the second quarter. On the bright side, some resilient companies from the +63 (2) 8588-1928
impact of Covidd-19 are the retail stocks such as PGOLD and RRHI, and food manufacturers like
CLAIRE T. ALVIAR
CNPF.
Research Associate
+63 (2) 8588-1925
GLOBAL NEWS
Ground Floor, East Tower
Oil prices abroad increased amid supply cuts, but gains were capped due to weaker demand PSE Center, Tektite Towers
outlook. The oil market is being supported by the drawdown in US crude stockpiles and supply Ortigas Center, Pasig City
cuts by the Organization of the Petroleum Exporting Countries (OPEC) and allies. However, traders PHILIPPINES
are still watching oil prices given the rising cases in the US, which could hamper the demand.
DISCLAIMER
Global oil prices should remain at its level so that it will not much weigh on inflation. But we think The opinion, views and recommendations
that given the rising cases, economic activities will not back to normal, meaning, demand will remain contained in this material were prepared by
weak dragging oil prices. Weak demand will, however, weigh on refineries which we think will report the Philstocks Research Team, individually
lower earnings or net loss this year. and separately, based on their specific
sector assignments, contextual framework,
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.
TRADE Metro Pacific Investments Corp. [pse: MPI] Furthermore, projection made and presented
in this report may change or be updated in
The company paid the Department of Public Works and Highways (DPWH) of concession fee amount- between the periods of release. Ergo, the
ing to P4.36 billion for Cavite-Laguna Expressway (CALAX). This was the second of six tranches validity of the projections and/or estimates
worth P27.3 billion. mentioned are good as of the date indicated
and may be changed without immediate
This will not much affect the operations or share price performance of MPI, although it is a cash out- notification.
flow. But in return, MPI will be able to enjoy the benefits of the expressway, however, during this time This report is primarily intended for
of pandemic where non-essential movement is discourage, it may generate lower sales than expecta- information purposes only and should not be
tion. considered as an exclusive basis for making
investment decision. The recommendations
Support is at P3.60, immediate resistance is at P3.90. It is already trading above the 200-day EMA, contained in this report is not tailored-fit any
which could be a dynamic support. If it breaches the immediate resistance, second is at P4.30. particular investor type, situation, or
objective and must not be taken as such.
Target Price (TA): Php 3.90-4.30 Determining the suitability of an investment
remains within the province of the investor.
Our estimates are based on information we
believe to be reliable. Nevertheless, nothing
in this report shall be construed as an offer
of a guarantee of a return of any kind and at
any time.

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

Source: TradingView TRADE - A potential 10% and above short-term upside

base on entry price and selling price.

Philstocks Research 2020 2 |Page