Successful SMP Charity Held Last May 26 Saturday Jaro Metropolitan Cathedral, ILOILO. Thank You Donors

The PSEi - PSE Composite Index & The Economy
...GDP 4th Qtr/2017 Full Year released tomorrow...SELL on news Tongue

Philippine economy likely grew by 6.7% in Q4 — Moody’s

The country’s economy likely grew by 6.7 percent in the last quarter of 2017, according to Moody’s Analytics.

In its latest Asia-Pacific Economic Preview report, the economic research and analysis arm of Moody’s said the Philippines’ gross domestic product in the last three months of the year may have expanded by 6.7 percent, slower than the revised seven percent GDP growth the previous quarter.

This is, however, higher than the 6.6 percent growth recorded in the comparative quarter of 2016.

“The Philippine economy likely grew 6.7 percent year-on-year in the December quarter, after a 6.5 percent lift in the prior three quarters. Domestic demand likely remained the major driver of growth, with exports also providing lift thanks to strong demand for electronics and components,” Moody’s Analytics said.

In particular, Moody’s said consumer spending likely remained firm as households benefited from steady inflows of overseas Filipino remittances and a healthy labor market.

Investments also stayed solid on the back of the government’s Build Build Build program, which got a further boost late last year with the passage of the Tax Reform for Acceleration and Inclusion Act.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1
“Growth prospects got a further boost late last year with the passage of the first tax reform bill, which will help fund President Rodrigo Duterte’s ambitious infrastructure development program,” the research firm said.

Currently, the estimated incremental revenues to be raised from the law is about P89.9 billion.

According to the Department of Finance (DOF), part of the additional revenues to be generated from the tax reform law will be used to fund the government’s Build Build Build program.

Under this program, the Duterte administration is planning to spend up to P9 trillion on infrastructure until 2022.

“That will go some way to improving the country’s poor infrastructure, which has long prevented the Philippines from reaching its potential,” Moody’s said.

The Philippine economy expanded by seven percent in the third quarter of 2017, based on the revised figures of the Philippine Statistics Authority. This puts the government on track to meet its 6.5 percent to 7.5 percent full-year growth target.

The government is scheduled to announce the country’s last quarter and full-year GDP growth on Jan. 23.

No change in PSE index; sectors undergo revamp

THE 30-MEMBER Philippine Stock Exchange index (PSEi) will remain unchanged, according to the bourse’s latest review covering full year 2017.

The Philippine Stock Exchange (PSE) announced in a statement on Monday that while there will be no changes to the main index’ composition, it has increased the minimum free float level requirement to 15% from 12% previously.

“This adjustment was made in anticipation of the plan of the Securities and Exchange Commission (SEC) to increase the minimum public ownership (MPO) for publicly-listed companies,” PSE President and Chief Executive Officer Ramon S. Monzon was quoted as saying in a statement.

The SEC had released a memorandum circular last November 2017 requiring companies seeking to conduct an initial public offering to have an MPO of at least 20%.

The corporate regulator has yet to release guidelines on how publicly listed companies should comply with the new rules, but noted in a draft circular that publicly listed firm will first be directed to reach a public float of at least 15% this year, before further raising it to 20% by 2020.

The PSE takes into account a company’s public float, liquidity, and capitalization in order to determine its suitability to be part of the index, which is seen as a gauge for investor sentiment.

“To ensure the sustainability and viability of companies that form the index, we shall also take into account the financial condition of companies that are potentially first time entrants to the main index and companies that form part of the sector indices,” Mr. Monzon added.

On the other hand, PSE’s six sectoral indices will be revamped.

The sub-index for holding firms will lose Lodestar Investment Holdings Corp., Pacifica, Inc., and Ramon S. Ang-led Top Frontier Investment Holdings, Inc.

Philippine Realty and Holdings Corp. will be added to the property sector, while Araneta Properties, Inc., Cyber Bay Corp., and MRC Allied, Inc. will be dropped.

To be included in the index for services are MacroAsia Corp., PhilWeb Corp. and Waterfront Philippines, Inc. On the other hand, 2GO Group, Inc., Apollo Global Capital, Inc., Island Information and Technology, Inc., Premiere Horizon Alliance Corp., Travellers International Hotel Group, Inc., and SBS Philippines Corp. will no longer be part of the services index.

Medco Holdings, Inc. will no longer be part of the financial index.

The industrial index will add two firms: Shakey’s Pizza Asia Ventures, Inc. and SFA Semicon Philippines Corp., while removing six firms, namely Crown Asia Chemicals Corp., Energy Development Corp., Holcim Philippines, Inc., Pepsi-Cola Products Philippines, Inc., Pryce Corp., and RFM Corp.

Atlas Consolidated Mining and Development Corp. and Century Peak Metals Holdings Corp. entered the mining and oil sector, while Marcventures Holdings, Inc. has been removed from the sub-index.

The changes will be implemented on Feb. 19. This is in line with the PSE’s policy that changed the recomposition schedule to February and August, instead of the previous March and September schedules.

comm...yung sa MSCI index rebalancing may news ata..di ko lang makita pa ung link
...nakalipat na pala sila sa BGC 'no?

At new BGC office, PSE to finally open unified trading floor

THE Philippine Stock Exchange, Inc. (PSE) will finally have a unified trading floor today, as it moves its operations to Bonifacio Global City, Taguig.

The PSE’s new office building, called One Bonifacio High Street, stands 26-storeys high with a gross leasable area of 30,000 square meters. The tower forms part of the Ayala Land Premier’s mixed-use estate along 5th Avenue corner 28th Street.

Plans to transfer to BGC to establish a single headquarters for the PSE started back in 2012, when the exchange inked a deal with Ayala Land, Inc. for the purchase of new office spaces in the rising financial district.

“As we move to our new office at the Bonifacio Global City, we shall embark on recording new history for the stock market and for our country,” PSE Chairman Jose T. Pardo said during the last closing bell at the Ayala Tower One trading floor.

Prior to moving to One Bonifacio High Street, the PSE had two separate trading floors located in the PSE Tektite Building in Ortigas Center, and Ayala Tower One in Makati City. 

The PSE Tektite Building was occupied by traders of what was formerly the Manila Stock Exchange. Founded in 1927, the first equities market in the country originally held office in Insular Life Building on Plaza Cervantes, Binondo, Manila. 

On the other hand, traders at the PSE Ayala were from the Makati Stock Exchange, which was established much later in 1963. These traders conducted their business at the Insular Life Building in Makati, before moving to the Ayala Tower in 1971.

While both exchanges traded the same stocks of the same companies, there were discrepancies in their prices, prompting then President Fidel V. Ramos to intervene and launch efforts to unite the two exchanges. 

With this, the PSE was established on July 14, 1992. Five months later on Dec. 23, the Manila and Makati Stock Exchanges were merged as one. It is only today, however, that the two trading floors would be physically united under one roof.

“A united exchange has always been a goal and finally we have achieved it. Hopefully it will be more cost efficient,” Regina Capital Development Corp. President Marita Limlingan said.

Ms. Limlingan, however, noted that the two exchanges were already unified prior to the transfer through technology.

“Unification to me is more symbolic because are actually united through technology,” she said.

In preparation for the transfer of its offices to BGC, the PSE last week held the final ceremonial ringing of the closing bell at the Tektite and Ayala towers. The Ortigas offices were sold back to its developer, Philippine Realty and Holdings, Corp., while the PSE has yet to decide what to do with the Ayala offices.

“The move is symbolic of a move towards a united capital market. After the unification of the trading floors, the next step would be for PSE to complete its acquisition of the PDS group which would result in a one-stop market for various financial assets,” PNB Securities, Inc. President Manuel Antonio G. Lisbona said. 

Aside from transferring to a new headquarters, the PSE is also working on its merger with the Philippine Dealing Systems Holding Corp. The move is seen to further strengthen the country’s capital markets as it achieves synergies in operations.

...scam na naman?

SEC cautions public against investing in Unitynet

THE Securities and Exchange Commission (SEC) has advised the public against investing in Unitynet Corp., which has not secured the necessary license to solicit any form of investment.

In an advisory posted on its Web site last week, the SEC said it has received reports that Unitynet has been enticing people to invest P2,990 in the company in exchange for access to a system that will guide them on how to conduct business better.

The country’s corporate regulator clarified that Unitynet does not have the authority to engage the public into any form of investment scheme. While Unitynet has a primary registration as a corporation with the SEC, it does not have a secondary license that allows it to offer, solicit, sell, or distribute any investment or securities.

Further, the investment products sold by the company must also be registered with the SEC, as per the Securities Regulation Code.

“In view thereof, the public is hereby advised to exercise caution before investing in these kinds of activities and to take the necessary precaution in dealing with Unitynet Corp. or its representatives,” the SEC said.

Unitynet allegedly gives investors access to the Ascending Profit System (APS) for an investment of P2,990. Originally priced at P70,000, this system contains items such as the 10 Steps Training Kit and One-on-One Coaching.

Through the APS, Unitynet will train investors on how to recruit or sponsor more downlines into their network marketing business, how to sell products online effectively, and how to promote their traditional businesses.

The SEC said that Unitynet tells prospective investors that they can earn as much as P11,000 for the investment, provided that they join the company immediately as there are limited slots. A member of Unitynet will also earn P1,000 for every person he refers into the system.

The methods of recruitment are primarily done online through a member’s social media account or Web site, where members are told to upload videos with catchy titles such as “Gusto mo bang kumita ng extrang P10,000?”

The SEC warned those who act as salesmen, brokers, dealers, or agents of Unitynet may be held criminally liable as per Section 28 of the SRC, in addition to a fine of up to P5 million or a penalty of 21 years in prison.

The commission may also sanction those who simply invite or recruit people into Unitynet.

The SEC added that any information relating to Unitynet should be immediately reported to its Enforcement and Investor Protection Department.
...ayan may bagong papartner sa third telco di lang chinese at korean, pati indian na Tongue

Indian firm wants to join PH telco market — Duterte

President Rodrigo R. Duterte announced on Tuesday, Feb. 20, that an Indian firm is seeking to invest in the Philippines’ telecommunications industry.

“So, we now talk about why we are here. Most of you are here because you are in business. And in this world of big business now, most of you or some of you are already in the Philippines, even in the construction business. There’s a new application from an Indian company,” Mr. Duterte said during his speech at the induction ceremony of the new board of directors of the Federation of Indian Chambers of Commerce Phils. Inc. (FICCI) held at the Malacañan Palace on Tuesday evening.

He added: “India is also interested to enter into the telecom industry, and we are considering… I invited them during my talks with the businessmen in India during my official visit.”

The selection of a third telecommunications service provider is one of the top priorities of Mr. Duterte’s administration for the first quarter of the year.

The Department of Information and Communications Technology (DICT) has recently released the draft criteria for the selection of the third telco player, and it is set to be presented to the stakeholders in a consultation on Feb. 27.

Also during his speech, the President reminded the Filipino-Indian businessmen that he has “opened up the third frequency for telecommunications.”

“If you are the representative there, you can always go to them and discuss business. But if you are asked to shell out money or there is a transaction which involves corruption for a favor or for a permit, then let me know,” Mr. Duterte said. “Unless you are ready to give it, then just shut up because it’s yours. But you are not supposed to spend for anything unless it’s part of the official fees and the collections of government, regulatory fees most of it.”

...I really hope so, parang gusto ko na mag-cash na lang muna ah Tongue pero sabi ni Miss April wala daw bear market, sana totoo

Bourse expected to weather global volatility

PHILIPPINE EQUITIES are unlikely to return to bear territory for some time despite volatility in global markets, with the country’s long-term economic growth prospects remaining intact against a backdrop of normalizing interest rates and mounting inflation pressure, stock market analysts said on Tuesday.

After a dizzying ascent to record levels at the start of the year, global equity markets have recently succumbed to a sharp sell-off after the United States Treasury yields hit a four-year high.

This revived concerns of a repeat of the 2013 “taper tantrum” that prompted the Federal Reserve to gradually scale back its monetary stimulus program, eventually roiling worldwide financial markets.

The local market was not spared, with the Philippine Stock Exchange index (PSEi) — a barometer of investor confidence — erasing its gains early this month at the height of the correction.

During the BusinessWorld Stock Market Roundtable at the Makati Shangri-La, COL Financial Group, Inc. Vice-President and Head of Research April Lynn L. Tan said the online brokerage downgraded its 2018 forecast for the PSEi to 8,750 from 9,300 after factoring in the impact of higher borrowing costs.

Philstocks Financial, Inc. Head of Research and Engagement Justino B. Calaycay, Jr. also hinted that a revision of its base-case forecast of 7,900-8,200 and best-case projection of 10,700-11,000 is in the cards after the release of the first-quarter corporate earnings.

Taking into account past corrections, COL Financial’s Ms. Tan expects the PSEi to bottom out at the 7,881 and 8,062 levels around March and May. The benchmark PSEi added 0.14% to close at 8,722.70 on Tuesday after spending most of the day in the red.

“Those waiting for a bear market, I’m sorry, I think you will be disappointed,” Ms. Tan said.

The Philippines, while vulnerable to wild price swings because of the sharp rally at the start of the year, deserves to trade at a premium over other Asian markets, said Michael Gerard D. Enriquez, chief investment officer at Sun Life of Canada Philippines, Inc., citing the robust domestic economy, acceleration of the government’s infrastructure program and the passage of other tax reform packages.

“As a long-term investor, we are excited about how infrastructure will play a role in the GDP. Right now, it’s 70% consumption, but if the government starts to spend and investments come into play, we can see our (gross domestic product) growth breaching seven percent,” Mr. Enriquez said.

First Metro Asset Management, Inc. President Augusto M. Cosio said the global asset allocation for emerging markets has been increasing in recent years, even as international fund managers are still underinvested in the Philippines.

“Emerging markets are the trade of the decade. Emerging markets, indeed, are the place to be,” Mr. Cosio said.

Another key risk this year is higher inflation as a result of weak peso and a new tax reform law, which threatens to dent consumer spending, Ms. Tan said. Consumption is one of the key drivers of the economy, accounting for two-thirds of gross domestic product (GDP).

The central bank expects inflation to average 4.3% this year, topping the 2-4% target range due to price pressures from fuel, cars, tobacco, coal and sugar-sweetened drinks.

“This too will pass. It is not a runaway inflation,” Ms. Tan said. “The Bangko Sentral has the tools to control inflation. It is not a long-term problem. It is a short-term issue.”

Aside from the possibility of more aggressive pace of rate hikes by the Fed and faster inflation, Sun Life’s Mr. Enriquez tagged the peso’s depreciation, worsening current account deficit and government execution of projects as the other key risks.

“There’s a lot of near-term potential disruptors, but over the medium-term, we continue to be constructive on equities market in general,” Mr. Enriquez said.

The analysts were overweight on banks because of rising interest rates, lower reserve requirement and fast loan growth.

The consumer sector may be “challenged” because of quickening inflation, and the infrastructure sector faces some “uncertainty” over how the government pursues big-ticket projects, they said.

“Whether the world is going up or going down, there are always opportunities out there. It’s only a matter of looking for them,” Philstocks’ Mr. Calaycay said.


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