I Philippine Equity Research Weekly Notes

Monday, 17 March 2025

MARKET COMMENTARY: April Tan, CFA

Chief Equity Strategist

Market rebound on pause due to U.S. market

weakness Indices
Close Points % YTD%
After rising strongly the previous week, the market moved sideways over PSEi 6,294.11 -4.18 -0.1% -3.6%
the past five trading days, with the PSEi index correcting 4.18 points or 0.1% All Shares 3,721.60 -2.60 -0.1% -0.7%
Financials 2,434.90 71.43 3.0% 12.9%
to 6,294.11.
Holding Firms 5,210.88 -40.32 -0.8% -7.6%
Industrial 8,753.66 -20.01 -0.2% -6.0%
The market’s momentum was negatively affected by the poor performance Mining & Oil 8,941.03 366.24 4.3% 14.2%
of U.S. stocks. Last week, the S&P 500 fell by 2.3% and is now down by Property 2,229.46 -44.90 -2.0% -6.2%
4.1% for the year-to-date period. U.S. stocks fell in response to President Services 2,052.49 -29.28 -1.4% -1.4%

Trump’s order to impose sizeable tariffs on imports from various countries

Dow Jones 41,488.19 -1,313.53 -3.1% -2.5%
led by Canada and Mexico and on numerous products including aluminum S&P 500 5,638.94 -131.26 -2.3% -4.1%
and steel. Most of the U.S.’s trading partners ordered retaliatory tariffs in Nasdaq 17,754.09 -442.13 -2.4% -8.1%
response.
PHP:USD 57.26 0.05 0.1% -1.0%
Dollar Index 103.72 -0.12 -0.1% -4.4%
On the positive side, foreign investors remained net buyers for the second
Oil ($) 67.18 0.14 0.2% -6.3%
week in a row, acquiring Php1.9 Bil worth of stocks.
Gold ($) 2984.16 75.06 2.6% 13.7%

Average daily value turnover remained thin at Php6.4 Bil. BPS BPS
Close W/W YTD
The top five index losers were MONDE (-7.3%), GLO (-5.7%), PGOLD (-5.0%),
PH 10-Yr Yield (%) 6.23 2.04 5.37
LTG (-5.0%), and ALI (-4.9%). US 10-Yr Yield (%) 4.31 1.10 -25.69

GLO fell on news earlier this month that the BSP has introduced draft Index Gainers
guidelines for digital marketplace activities prohibiting electronic money Ticker Company Price %
issuers (EMIs) such as GCash from offering any products linked to gambling. BLOOM Bloomberry Resorts Corp 3.66 10.9%
Meanwhile, LTG and ALI corrected after posting significant gains the week BDO BDO Unibank Inc 165.00 4.8%
AC Ayala Corp 605.00 4.0%
before.
BPI Bank of the Philippine Islands 136.00 3.5%
JFC Jollibee Foods Corp 260.00 2.8%
On the other hand, the top five index gainers were BLOOM (+10.9%), BDO
(+5.4%), MER (+4.5%), AC (+3.9%), and BPI (+3.5%). Index Losers
Ticker Company Price %
BLOOM rebounded after performing poorly earlier this year due to its MONDE Monde Nissin Corp 7.20 -7.3%
disappointing earnings performance and speculation that it would be GLO Globe Telecom Inc 2106.00 -5.7%
PGOLD Puregold Price Club Inc 26.70 -5.0%
removed from the PSEi index in the next rebalancing. The stock also
LTG LT Group Inc 11.88 -5.0%
responded favorably to the company’s disclosure that it is preparing to ALI Ayala Land Inc 22.30 -4.9%
launch an online platform that will expand its presence in the electronic
gaming space. Top 5 Most Active Stocks
Ticker Company Turnover
All eyes are now focused on the U.S. market to see whether its ongoing BDO BDO Unibank Inc 4,420.92

weakness is only temporary or if it is the start of a more serious correction. ICT International Container Termin 2,784.21
ALI Ayala Land Inc 2,597.97
After all, the Philippine market has always suffered from a contagion every BPI Bank of the Philippine Islands 2,305.51
time the U.S. market performs poorly. JFC Jollibee Foods Corp 991.22

(as of March 10-14, 2025)

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Weekly Notes I Philippine Equity Research Monday, 17 March 2025

NOTABLE HEADLINES:

Fourth quarter earnings season: Misses outnumber beats DigiPlus Interactive

Corp.

Seven more companies released their fourth quarter earnings last week. Ticker: PLUS

Out of the seven, only two beat expectations (PLUS, LTG), while four Rating: HOLD

performed worse than expected (ACEN, AEV, JFC, DMC). RLC performed FV: Php5.57

in line with COL expectations although it missed consensus estimates.

LT Group Inc.

Exhibit 1: Last week’s earnings results Ticker: LTG

Rating: N/A
Company 4Q Income Growth FY Income Growth Vs COL Estimates FV: N/A
PLUS 93.00% 209.00% Above
LTG 47.30% 13.80% Above Robinsons Land Corporation
RLC -1.00% 3.50% In line Ticker: RLC
ACEN 46.40% 26.60% Below
Rating: BUY
AEV 39.00% 15.00% Below
JFC -4.80% 17.70% Below FV: Php19.90
DMC -24.10% -21.00% Below

Source: Listed companies, COL estimates

AC Energy Corporation
Ticker: ACEN

Out of the 31 companies that have released their fourth quarter earnings so Rating: HOLD

far, outperformers still outnumbered underperformers at 12 vs 9, although FV: Php6.12

the margin in shrinking. Ten performed in line with expectations.

Below is a summary of the latest companies’ earnings results: Aboitiz Equity Ventures, Inc.
Ticker: AEV
Rating: HOLD

PLUS: Profits beat expectations, but risks abound FV: Php62.80

Digiplus’s 4Q24 profits grew 9.6% Q/Q and 93% Y/Y as revenues jumped Jollibee Foods Corporation

24.4% Q/Q to Php23.6 Bil, the highest quarterly revenues on record. This Ticker: JFC

resulted to full year net income to surged 209% to Php12.6 Bil, beating both Rating: BUY

COL and consensus estimates. FV: Php319.00

Despite intensifying competition, PLUS managed to grow 4Q24 revenues DMCI Holdings, Inc.

by launching the first live-streamed drop ball game in the country during Ticker: DMC

the third quarter. It also benefited from the popularity of other Filipino Rating: BUY

carnival or perya games. Management also said that Super Ace Jackpot, FV: Php14.60

which was introduced in mid-2024, became a key driver of engagement,

solidifying the company’s leadership in digital gaming.