Weekly Notes INDEX

WEEKLY MARKET STATS

VALUE PTS PCT YTD %

Monday, July 06, 2020 PSEI 6,372.66 180.82 2.92% -18.46%
Reference: Japhet Louis O. Tantiangco ALL 3,717.93 86.78 2.39% -20.04%

BDO Unibank, Inc. [PSE: BDO] FIN

IND
1,267.56

7,950.73
28.60

323.66
2.31%

4.24%
-31.99%

-17.48%

BUY LTP: Php 130.20 HDG 6,565.99 121.52 1.89% -13.52%

PRO 3,169.68 121.36 3.98% -23.71%

SVC 1,432.08 37.58 2.69% -6.47%

M&O 5,306.84 136.98 2.65% -34.42%

ASIAN MARKETS (AS OF JULY 03, 2020)

INDEX VALUE PTS PCT YTD %

 Raised P36 billion from fixed rate Peso bonds with a tenor of 1.75 years at a coupon rate of
Nikkei 225 22,306.48 (205.60) -0.91% -5.71%
3.125% per annum.
 Low borrowing cost to help in BDO’s margins. Hang Seng 25,373.12 823.13 3.35% -9.99%

 Uncertain economic outlook poses risks however. Shanghai 3,152.81 173.26 5.81% 3.37%

 Currently testing its 50-day exponential moving average. MACD is narrowing its gap with the KOSPI 2,152.41 17.76 0.83% -2.06%
signal line. a crossover would imply a possible rally in the short run. HCM 847.61 (4.37) -0.51% -11.80%

SET 1,372.27 41.93 3.15% -13.14%

OUR VIEW FOR THE WEEK
STI 2,652.94 48.43 1.86% -17.68%

KLCI 1,552.65 64.51 4.33% -2.27%

JCI 4,973.79 69.70 1.42% -21.05%

INTERNALS
VOL 42,415,658,321.25 ADV 119

Trade cautiously as the local market test the validity of current levels amid economic recovery VAL 8,483,131,664.25 DEC 113
hopes and lingering COVID-19 risks. BLOCK 11,150,506,046.90 UNCH 20

The challenge of the local bourse now is to sustain its ground above the 6,350 level to have a
better chance of testing its 6,600 resistance. Failure to sustain ground above the 6,350 level could
lead to a retesting of the 6,100 support. Economic recovery hopes are still seen to give support to
the market following the further easing of quarantine measures in the country. On the downside
however are the Coronavirus risks as local and global cases continue to rise with our country al-
ready at 44,254 and the world having more than 10.9 million. Anticipation of dismal 2nd quarter
earnings may also weigh on the local market this week. June inflation figures will also be out on
July 7 (Tuesday) with Philstocks’ forecast at 2.3%.

OTHER MARKET SNAPSHOTS

Brent Crude $42.77 5.01%

WTI Crude $40.28 5.45%

Source: TradingView
Gold $1,787.60 0.16%
MARKET WRAP Silver $18.32 2.06%

Copper $274.85 3.52%

The PSEi rose by 2.92% w/w to 6,372.66 primarily due to the the positive trial results of Pfizer and
BioNTech’s COVID-19 vaccine candidate. The easing contraction of the global manufacturing sector, US$:Php 49.57 -0.74%

together with the surge in US nonfarm payrolls, and strong expansion in China’s Service PMI also US 10 Yr Yield 0.68% 0.64% (June 26, 2020)
helped in the climb. Average net value turnover (net of block sales) for the week improved marginally
by 0.67% to P6.25 billion. Advancers led decliners, 119 to 113, while 20 issues remained unchanged.

Philstocks Research 2020 1 |Page

 Industrials led the rally gaining 4.24% w/w.
Philstocks Research
First Gen Corporation [PSE: FGEN] led the index climbing 19.33% w/w as the current energy chal-
lenges of the country give opportunities to the renewables sector. Valorous Asia Holdings Pte. Ltd. JUSTINO B. CALAYCAY, JR
also bought all FGEN tendered shares this week at P22.50 apiece. Metro Pacific Investments Cor- AVP-Head, Research & Engagement
+63 (2) 8588-1962
poration [PSE: MPI] was at the tail end shedding 3.16% w/w.
JAPHET LOUIS O. TANTIANGCO
Sr. Research Analyst
LOCAL NEWS +63 (2) 8588-1927
PIPER CHAUCER E. TAN
June 2020 Inflation rate to be released on July 7, 2020 (Tuesday) Engagement Officer/Research Associate
+63 (2) 8588-1928
Philstocks’ projects June inflation to settle at 2.3%, higher than the prior month’s 2.1% but lower
compared to June 2019’s 2.7%. The increase in oil prices as well as selected agricultural commodities CLAIRE T. ALVIAR
provided upside to June inflation. Meanwhile, the lower electricity rates and the stronger peso Research Associate
contributed to the downside. +63 (2) 8588-1925

Philstocks’ forecast is at the midpoint of BSP’s range projection of 1.9% to 2.7%. Ground Floor, East Tower
PSE Center, Tektite Towers
Ortigas Center, Pasig City
PHILIPPINES

GLOBAL NEWS DISCLAIMER

The opinion, views and recommendations
As per the World Health Organization’s data, Global Coronavirus cases rose 212,326 this past contained in this material were prepared by
Saturday, the fastest to date. This brings total COVID-19 cases around the world at 10.9 million the Philstocks Research Team, individually
with deaths registering 523,011. The US still has the highest number of COVID-19 cases at 2.7 and separately, based on their specific
million. sector assignments, contextual framework,
personal judgments, biases and prejudices,
The rise in COVID-19 cases is the unwanted consequence of the easing of social restrictions around time horizons, methods and other factors.
the world. Moving forward, we may see this trend continue as restrictions remain moderated. This in The reader is enjoined to take this into
account when perusing and considering the
turn would continue to challenge the global economy as it tries to claw its way back from the current
contents of the report as a basis for their
recession, weighing on sentiment towards equity markets in the process. stock investment or trading decisions.
Furthermore, projection made and presented
in this report may change or be updated in
COMPANY NEWS between the periods of release. Ergo, the
validity of the projections and/or estimates
mentioned are good as of the date indicated
BUY BDO Unibank, Inc. [PSE: BDO] and may be changed without immediate
Reference: Piper Tan notification.

BDO was able to raise P36 billion from fixed rate Peso bonds with a tenor of 1.75 years at a coupon rate This report is primarily intended for
information purposes only and should not be
of 3.125% per annum. The bond offer was originally at P5 billion oversubscribed by more than 7 times
considered as an exclusive basis for making
amid the strong demand from investors. investment decision. The recommendations
contained in this report is not tailored-fit any
BDO’s capital raising is seen to be done at the right time as interest rates lie at low levels due to policy
particular investor type, situation, or
easing measures taken by the BSP to combat the economic impact of the pandemic. This lowers the objective and must not be taken as such.
firm’s borrowing cost which will in turn help in their margins. The challenge would be to find borrowers Determining the suitability of an investment
while the economic outlook remains uncertain due to the pandemic. remains within the province of the investor.
Our estimates are based on information we
From its close of P85.00 last March 19, BDO has already climbed by 17.59%. Currently, it is trading believe to be reliable. Nevertheless, nothing
sideways within its 96.00 support and its 114.00 - 116.00 resistance range. At the same time, the share in this report shall be construed as an offer
is testing it’s 50-day exponential moving average which also serves as a dynamic resistance. It’s MACD of a guarantee of a return of any kind and at
line is narrowing its gap with the signal line. Crossing above this line would give BDO an upward bias. 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
TRADE - A potential 10% and above short-term upside
base on entry price and selling price.

Source: TradingView

Philstocks Research 2020 2 |Page

 DIVIDEND TABLE
COMPANY TYPE OF DIVIDEND RECORD
COMPANY EX-DATE PAYMENT DATE
TICKER SHARE PAYMENT DATE
FLI Filinvest Land Inc. COMMON 0.0324 07/07/2020 07/10/2020 08/05/2020
ALCO Arthaland Corporation COMMON 0.012 07/07/2020 07/10/2020 07/31/2020
MVC Mabuhay Vinyl Corporation COMMON 0.10 07/13/2020 07/16/2020 08/11/2020

FDC Filinvest Development Corporation COMMON 0.1384 07/17/2020 07/22/2020 08/17/2020

ACPB1 Ayala Corporation PREFERRED 6.56250 07/17/2020 07/22/2020 08/15/2020

OPM Oriental Petroleum and Minerals Corporation COMMON 0.0005 07/21/2020 07/24/2020 08/18/2020
CNPF Century Pacific Food Inc. COMMON 0.18 07/27/2020 07/30/2020 08/14/2020
GLOPP Globe Telecom Inc. PREFERRED 5.2006%* 07/23/2020 07/28/2020 08/24/2020

*US Dollars
Source : Philippine Stock Exchange (PSE)

TOP NET FOREIGN BUYING / SELLING STOCKS YTD

NET FOREIGN BUYING (IN MILLION NET FOREIGN SELLING (IN
PESOS) MILLION PESOS)
SM 7,303.08 BDO (7,852.27)
SMPH 810.41 EMP (5,480.85)
WLCON 532.36 MBT (5,300.85)
FB 446.19 URC (3,953.80)
BLOOM 244.13 ALI (3,657.61)

Source : PSE

Philstocks Research 2020 3 |Page