FINANCIAL MARKET UPDATES

Stock Market News:

Amer: Aug 28, 2023 12:00AM

https://www.philstar.com/business/2023/08/28/2291822/stocks-still-seen-bearish-week/amp/

WHAT: Stocks still seen bearish this week

WHY:

-The local stock market in the Philippines has experienced a decline in recent sessions, with the
benchmark Philippine Stock Exchange index (PSEi) dropping by 2.06 percent week-on-week to a near
10-month low of 6,160.61.

- This bearish sentiment is in line with the decline observed in other regional markets, as investors are
cautious about the potential for a hawkish shift in the stance of the US Federal.

Reserve under Chair Jerome Powell.

- Economic factors, including moderating economic activity, high interest rates, and elevated inflation,
are contributing to the challenging market conditions. The Bangko Sentral ng Pilipinas (BSP) expects to
miss the targeted GDP growth of six to seven percent for the year due to these factors.

- Value turnover in the market has dropped significantly by 55.2 percent week-on-week, and net foreign
selling has increased by 229.31 percent week-on-week, indicating reduced investor confidence.

SO WHAT:

- The ongoing bearish sentiment suggests that investors are adopting a cautious approach, possibly to
the uncertainties posed by the global economic environment and domestic economic challenges.

- The drop in value turnover and increased net foreign selling reflect a lack of strong buying interest and
potential concerns among foreign investors about the market's performance.

- Despite the negative outlook, financial institutions like Unicapital Securities and 2TradeAsia suggest
that investors should explore potential investment opportunities in the market, as some valuations are
becoming more appealing given the recent decline.

- Upcoming events, such as banks' loan growth data, domestic liquidity growth data, and manufacturing
data releases, are expected to provide insight into the economic health of the country and may
influence market direction.

- The actions of the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve are anticipated to
have an impact on the market. The BSP's policy rate-setting meeting and the potential alignment of its
decision with the next Fed rate decision indicate efforts to manage interest rate differentials.

- Market experts, like Michael Ricafort, highlight specific resistance and support levels, offering
guidance to investors on potential market movement.
Economic news:
Lyka: Aug 29, 2023

https://www.bworldonline.comleconomy/2023/08/28/541974/doe-sets-sept-28-deadline-for-geot

hermal-hydro-wind-bids/

What: DoE sets Sept. 28 deadline for geothermal, hydro, wind bids

- The DoE is offering three geothermal sites for development, with potential capacity of about 160
megawatts (MW). The DoE has also identified 13 predetermined areas for hydropower projects with an
overall capacity of 86.25 MW. Wind sites on offer are in San Jose City, Nueva Ecija; Pantabangan,
Nueva Ecija; and Bagac, Bataan. The target potential capacity has yet to be determined. (pwede ra di e
memorize)

Why:

 The DoE moved the deadline from Aug. 29. The fourth round will feature 19 sites on offer.
 THE Department of Energy (DoE) said the new deadline to submit bids for the fourth round of
the open and competitive selection process (OCSP-4) is Sept. 28, with the bids to be opened on
the same day.

So, what:

 Energy Assistant Secretary Mylene C. Capongcol said the extension will "ensure the widest
participation in the OCSP4" and provide enough time for prospective bidders to prepare and
submit their proposals.
 Renewable Energy can propose a number of benefits to the community such as: Less Global
warming, Improved Public Health, Inexhaustible energy, Jobs and other economic benefits.
This means that, on average, more jobs are created for each unit of electricity generated from
renewable sources than from fossil fuels. Local governments also benefit from clean energy,
most often in the form of property and income taxes and other payments from renewable energy
project owners.
Corporate/ Finance news:
Lyka:

https://www.bworldonline.com/corporate/2023/08/28/541819/ayala-share-price-rises-as-investor

s-pick-bargains/

What: "Ayala share price rises as investors pick bargains

AYALA CORP'S stock price gained last week as investors bargain-hunted after four consecutive weeks
of net selling from foreign market participants.

Why:

 Globalinks Securities and Stocks, Inc. Senior Trader Mark V. Santarina said in a Viber message
that he saw foreign selling from foreign investors of Ayala's stock for the past few weeks that
pushed its stock price downward. (mao nag bargain hunting)
 Another potential factor influencing this price movement is the recent announcement regarding the
collaboration between Ayala Corp., 917Ventures, and Gogoro Network. This partnership focuses on
the development of two-wheeled EV swapping technology, which has likely contributed to market
dynamics," he added.

So what:

 "[Ayala's] share price went up for the week due to bargain-hunting activities after the stock declined
week-on-week for the past four consecutive weeks," RCBC Securities, Inc. Equity Research Analyst
John Renz S. Alvarado said in an e-mail note.
 Analysts said that although Ayala's diverse variety of companies producing profitable results
ensured the holding company's growth trajectory for the year, downward pressures continued
because its stock price was still impacted by the mood of the whole market.
 Ayala's consolidated revenues rose by 19% in the second quarter, bringing its top line in the first
half growing by 19.3% (ambot if relevant ni)
 "However, the persistence of foreign selling might result in further sideways trading for the stock.
Another concerning factor is the subdued trading activity across the market," he said. Bernadette
Therese M. Gadon