March 9, 2018

Market Summary Philippines Value Points % Change

The Philippine Stock Exchange index (PSEi) slipped back to negative territory on
Thursday, as investors absorbed data from the US Federal Reserve’s Beige Book.
USD/PHP 52.030 0.05 0.10
The main index went down 0.27% or 22.84 points to close at 8,381.85 today, PSEi 8,381.85 (22.84) (0.27)
March 8, failing to sustain gains seen in the previous session.The broader all-
shares index, meanwhile, rose 0.19% or 9.61 points to 5,065.48. All 5,065.48 9.61 0.19

Four sectors were down today, led by financials which dipped 0.89% or 19.84 Financials 2,186.40 (19.84) (0.90)
points to close at 2,186.40. Industrials followed with a decrease of 0.74% or 85.92 Holding Firms 8,394.30 (9.57) (0.11)
points to 11,442.52; property gave up 0.20% or 7.71 points to 3,747.23; while
holding firms lost 0.11% or 9.57 points to 8,394.30.Services on the other hand Industrial 11,442.52 (85.92) (0.75)
jumped by 1.03% or 18.08 points to 1,762.28, while mining and oil added 0.10% or
11.66 points to 11,538.19. Mining & Oil 11,538.19 11.66 0.10

(Business World) Property 3,747.23 (7.71) (0.21)

Company Brief Services 1,762.28 18.08 1.04

US
PLDT, Inc. (TEL) Last Price: 1,560
DJIA 24,895.21 93.85 0.38
PLDT, Inc. (TEL) expects a better year after earnings took a hit in 2017 from
accelerated depreciation costs, with the dominant telco mulling the sale of its stake S&P 500 2,738.97 12.17 0.45
in German start-up Rocket Internet AG to finance its record capital expenditure
(capex) program. NASDAQ 7,427.95 31.30 0.42
COMMODITIES
In a briefing in Makati City on Thursday, TEL Chairman Manuel V. Pangilinan said
recurring core income will grow to as much as P24 billion this year from the P22.3 Dubai Crude 60.66 (0.84) (1.37)
billion registered last year, slightly ahead of its P22-billion target for the entire
2017. Oil (WTI) 60.12 (1.03) (1.68)

Gold 1,321.97 (3.55) (0.27)

The profit guidance is supported by an anticipated 4% growth in service revenues
that will reverse the 3% drop seen in 2017, Mr. Pangilinan said, anchored on the Nickel 13,213.50 (320.50) (2.37)
double-digit expansion of the home and enterprise segments and the “flattish if not
Prices as of: March 8, 2018 Source: Bloomberg
slight improvement” in the wireless business.
Talking Points
Shares in TEL added P35 or 2.3% to end at P1,560 apiece on Thursday, bucking
the 0.27% slide in the Philippine Stock Exchange index. PLDT Chief Revenue The greenback and Treasuries rallied as traders awaited President
Officer Ernesto R. Alberto said the telco has arrested the decline in service Donald Trump’s tariff announcement Thursday. The Canadian
revenues through 2017, posting three quarters of modest sequential increases dollar and Mexican peso both posted late session rallies amid
starting in the second quarter. reports the nations will be indefinitely exempted from metals
duties. The dollar built on early gains spurred by the European
“Things are beginning to look up for the group. I am not saying we are completely Central Bank, which unexpectedly dropped its easing bias but
out of the woods, but we are getting there,” Mr. Pangilinan said. cautioned that its asset-purchasing program will continue until
(Business World) inflation is solidly on the path to the bank’s target. Treasuries
climbed across the curve, backed by heavy futures volume
World Highlights The dollar gained as much as 0.6%, rising against most of its G-10
peers. EUR/USD slumped 0.8%, while USD/JPY rose 0.2%.
US: The three major U.S. stock indexes closed higher on Thursday after President
USD/CAD and USD/MXN reversed gains after the tariff news
Donald Trump appeared to soften his stance on trade tariffs, easing trade war
fears that had had the market on edge for a week.
Treasuries rallied, with the belly leading gains. U.S. 10Y yield
narrowed 1.3 bps to 2.8699%
The Dow Jones Industrial Average rose 93.85 points, or 0.38%, to close at
24,895.21, the S&P 500 gained 12.17 points, or 0.45%, to 2,738.97 and the
Currency Outlook
Nasdaq Composite added 31.30 points, or 0.42%, to 7,427.95.
USD/PHP at 52.03 implies consolidation within 51.90/52.10 range
could persist. But a break the 51.70 levels is needed to support
COMMODITIES: Oil prices fell on Thursday, headed for a second straight weekly
further appreciation. Otherwise, risk of a move back to 52.25/52.50
drop on a stronger dollar, signs of an inventory build at the U.S. storage hub in
levels could arise.
Cushing, Oklahoma, surging U.S. crude production and investor jitters about a
potential trade war.
Expect currency to range with the 51.90/52.10 levels.
U.S. crude at 60.12. Gold is at 1,321.97.
(Reuters)

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