Weekly Notes Monday, June 21, 2021 WEEKLY MARKET STATS Reference: Japhet Louis O. Tantiangco INDEX VALUE PTS PCT YTD % PSEI 6,851.38 (56.41) -0.82% -4.04% [PSE: MEG] ALL 4,166.90 (7.75) -0.19% -2.47% FIN 1,491.40 23.21 1.58% 3.02% TRADE TP: Php 3.40 IND 9,364.03 61.63 0.66% -0.31%

HDG 6,936.33 (22.67) -0.33% -5.69%

PRO 3,293.30 (130.06) -3.80% -10.13%

SVC 1,558.65 16.11 1.04% 2.94%

M&O 9,311.04 (146.51) -1.55% -2.28%

ASIAN MARKETS (AS OF JUNE 18, 2021)  MEG plans to use the proceeds from the MREIT, Inc. initial public offering for 21 new office and commercial projects. INDEX VALUE PTS PCT YTD %  It is advised to wait for the share to regain its ground at 3.20 first before entering. If it fails to do Nikkei 225 28,964.08 15.35 0.05% 5.54% so, wait for it to fall to and confirm its 2.85 - 2.90 support. If it does, it could be traded within the Hang Seng 28,801.27 (40.86) -0.14% 5.77% 2.85 - 3.20 range. Shanghai 3,525.10 (64.65) -1.80% 1.50% OUR VIEW FOR THE WEEK KOSPI 3,267.93 18.61 0.57% 13.73% HCM 1377.77 26.03 1.93% 24.81%

SET 1,612.98 (23.58) -1.44% 11.29%

STI 3,144.16 (13.81) -0.44% 10.56%

KLCI 1,589.05 13.89 0.88% -2.35%

JCI 6,007.12 (88.38) -1.45% 0.47% As of June 18, 2021, the local market is up by 11.29% from its May 24, 2021 trough of 6,156.20, INTERNALS making it susceptible still to profit taking. Thus, if there will be no catalyst this week, then selling pressures are expected to continue to dominate the market. For catalysts, investors are seen to TOTAL VALUE 49,048,761,283.17 FOREIGN BUYING 17,980,290,444.17 watch out for developments on our country’s vaccination campaign. A further progress on our vac- AVE VALUE 9,809,752,256.63 FOREIGN SELLING 24,705,155,406.27

cine procurement, and a further speed up in the number of individuals inoculated may spur positive BLOCK 10,864,801,918.15 NET FOREIGN (6,724,864,962.10) sentiment. Investors may also monitor the country’s COVID-19 case counts. A slowdown in the daily increase of our cases may also help lift sentiment. Finally, the market is seen to take cues from the upcoming meeting of the Monetary Board of the Bangko Sentral ng Pilipinas. While the policy rate is projected to remain unchanged in the upcoming meeting, investors are seen to watch out for the BSP’s inflation expectations. A decline in expectations may also give a boost to the local market.

Chartwise, the PSEi’s 50-day exponential moving average has already crossed above its 200-day counterpart. This forms a Golden Cross which is a bullish signal for the local bourse. Last week however, the market has given up its ground at the 6,900 level. With this, we see the market’s sup- port now at 6,600 while its resistance is seen at 6,900.

OTHER MARKET SNAPSHOTS

Brent Crude $73.19 0.83%

WTI Crude $71.29 0.68%

Gold $1,764.30 -6.12% Source: TradingView Silver $25.83 -7.91% MARKET WRAP Copper $412.05 -9.45% The local bourse declined last week amid the pessimistic sentiment towards the local economy. This US$:Php 48.43 1.53% came amid the International Monetary Fund’s downgraded 2021 Philippine economic growth forecast from 6.9% to 5.4%, and the fall in the Philippines’ ranking from 45th to 52nd in the International Insti- US 10 Yr Yield 1.45% 1.47% (June 11, 2021) tute for Management Development’s 2021 World Competitiveness Report. The negative cues from Wall Street amid the Federal Reserve’s upgraded inflation forecast for the US economy, and its sig- nal of possible policy rate hikes in 2023 also weighed on the local bourse.

Philstocks Research 2021 1 |Page Foreigners were net sellers with net outflows for the week totaling P6.72 billion. Trading activity strengthened with net value turnover averaging P7.64 billion per day last week, up by 35.4% w/w. Philstocks Research This was still lower however compared to the year-to-date average of P7.92 billion

Banks gained the most of all sectors adding 1.58% w/w. Properties lost the most shedding 3.80% w/w. JAPHET LOUIS O. TANTIANGCO Senior Supervisor—Research International Container Terminal Services, Inc. [PSE: ICT] led the index jumping 5.96% w/w to +63 (2) 8588-1927 P160.00. Bloomberry Resorts Corporation [PSE: BLOOM] was at the tail end plunging 6.34%% w/w to P6.80. CLAIRE T. ALVIAR Senior Research and Engagement Officer MARKET NEWS +63 (2) 8588-1925

As of the end of the 1st quarter of 2021, the Philippines’ external debt stood at $97.05 billion, down 1.5% from end-2020 levels. The year-to-date decline was primarily due to the private local Ground Floor, East Tower banks’ settlement of obligations, and the national government’s redemption of its maturing bonds. On PSE Center, Tektite Towers a year-on-year basis, the country’s external debt increased by 19.2%. As of the end of the 1st quarter Ortigas Center, Pasig City of 2021, our external debt to GDP was at 26.7%, down from end-2020’s 27.2% but up from the same PHILIPPINES period last year’s 21.4%. (Bangko Sentral ng Pilipinas)

Moving forward, the Philippines external debt for full year 2021 could still end up higher than 2020. DISCLAIMER This is as the government may borrow strongly offshore for the remainder of the year to fund its public expenditure programs to support the economy. As of April 2021, the national government’s The opinion, views and recommendations outstanding external debt is at P3.18 trillion, up by 2.5% year-to-date. contained in this material were prepared by the Philstocks Research Team, individually In the 2021 World Competitiveness Report by the International Institute for Management and separately, based on their specific Development, the Philippines ranked 52nd out of 64 countries, declining 7 spots. This is also sector assignments, contextual framework, personal judgments, biases and prejudices, its lowest in 5 years. (BusinessWorld) time horizons, methods and other factors. According to Bangko Sentral ng Pilipinas Governor Benjamin Diokno, the Bangko Sentral ng Pilipinas The reader is enjoined to take this into account when perusing and considering the has already released P2.2 trillion worth of liquidity into the financial system through its eased contents of the report as a basis for their monetary policies. This is equivalent to 12.13% of the GDP. (Philstar) stock investment or trading decisions. Furthermore, projection made and presented

in this report may change or be updated in between the periods of release. Ergo, the validity of the projections and/or estimates mentioned are good as of the date indicated and may be changed without immediate COMPANY NEWS notification. This report is primarily intended for Trade Megaworld Corporation [PSE: MEG] information purposes only and should not be Target Price: P3.40 considered as an exclusive basis for making investment decision. The recommendations contained in this report is not tailored-fit any MEG plans to use the proceeds coming from the up to P27.3 billion initial public offering of its particular investor type, situation, or subsidiary MREIT, Inc. in 21 new projects in the next 5 years. This will include 15 office developments objective and must not be taken as such. in: Uptown Bonifacio and McKinley West, Taguig City; , Pasig City; , Determining the suitability of an investment Iloilo City; The Upper East, City; Capital Town, Pampanga; The Mactan Newtown, Cebu; and remains within the province of the investor. Davao Park District, Davao City. It will also include 5 lifestyle malls in: The Upper East and Northill Our estimates are based on information we Gateway, Bacolod; Capital Town, Pampanga; Maple Grove, Cavite; and Highland City, Rizal. Finally, believe to be reliable. Nevertheless, nothing the project pipeline includes one hotel in the Mactan Newtown. (PSE Edge) in this report shall be construed as an offer of a guarantee of a return of any kind and at These 21 planned projects is seen to strengthen MEG’s property portfolio. It also sets the company for any time. bright prospects as it is seen to boost its earnings, primarily its recurring income. This is also seen to be timely given that the economy is expected to recover moving forward with the underlying assumption that the Philippines’ vaccination campaign will continue to progress and that restrictions Rating Definitions: will be further eased. BUY - More than 15% upside base on the target price in the next 9-12 months Chartwise, MEG has just crossed below the 3.20 level as well as its 10-day and 50-day exponential moving average last week. With this, it is advised to wait and see if MEG can regain its ground above HOLD - 15% or less upside or downside in the next the said lines, especially the 3.20 level. If it is able to do so, the share may target its next resistance at 9-12 months 3.40. If MEG fails to get back above 3.20 however, wait for the share to fall to and confirm its support SELL - More than 15% downside base on the target at the 2.85 - 2.90 range. If it does, then it may trade within the 2.85 - 3.20 range. Currently, the share’s price in the next 9-12 months MACD line is still above the signal line implying that there’s still upward momentum. The gap between TRADE - A potential 10% and above short-term upside the two is narrowing however indicating that the said momentum is already waning. Remember to set base on entry price and selling price. a cut loss point 5% below your acquisition price.

Philstocks Research 2021 2 |Page Source: TradingView

DIVIDEND TABLE

COMPANY TYPE OF TYPE OF DIVIDEND COMPANY EX-DATE RECORD DATE PAYMENT DATE TICKER SECURITY DIVIDEND PAYMENT

LTG LT Group, Inc. COMMON Cash 0.24 Jun 22, 2021 Jun 25, 2021 Jul 9, 2021

DDPR DoubleDragon Properties Corp. PREFERRED Cash 1.61945 Jun 24, 2021 Jun 29, 2021 Jul 14, 2021

ACR Alsons Consolidated Resources, COMMON Cash 0.02 Jun 25, 2021 Jun 30, 2021 Jul 23, 2021

SMC San Miguel Corporation COMMON Cash 0.35 Jun 29, 2021 Jul 2, 2021 Jul 28, 2021

LAND City & Land Developers, Incorpo- COMMON Cash 0.01392 Jun 29, 2021 Jul 2, 2021 Jul 28, 2021

GTPPB GT Capital Holdings, Inc. PREFERRED Cash 12.73725 Jun 30, 2021 Jul 5, 2021 Jul 27, 2021

GTPPA GT Capital Holdings, Inc. PREFERRED Cash 11.57475 Jun 30, 2021 Jul 5, 2021 Jul 27, 2021

*US Dollars Source: Philippine Stock Exchange (PSE)

TOP 5 NET FOREIGN BUYING / SELLING STOCKS YTD

NET FOREIGN BUYING (IN MILLION PESOS) NET FOREIGN SELLING (IN MILLION PESOS)

ACEN 1,640.72 ALI (7,984.56) ICT 1,601.12 AC (4,175.55) NIKL 551.56 SM (3,810.25) CEB 526.13 AP (3,315.08) HOME 461.45 GLO (3,076.29)

Source : PSE

3

Philstocks Research 2021 |Page Market Calendar June-July 2021 Monday Tuesday Wednesday Thursday Friday 21-June-2021 22-June-2021 23-June-2021 24-June-2021 25-June-2021 PRC, WLCON: ASM CDC: ASM CSB, NRCP: ASM ALHI,SPM, AXLM, DMW, ACR: CD NOW, SGI, GERI, BRN, LTG:CD PH: Retail Price Index AUB, PXP, VITA, PRMX, DWC, EAGLE: ASM (APR) PBB, LSC, PLC, ALCO, PH: Budget Balance (May) DD:CD HOME,SBS, PX, SLI, COSCO, BEL, JFC: ASM DELM: AB

PH: Interest rate decision 28-June-2021 29-June-2021 30-June-2021 01-July-2021 02-July-2021 STR, RCB: ASM KEP,MJC, OPM, SSI: ASM RFM, RLT, FNI, ROCK, CPG:CD I, PSE: ASM MWIDE, APX, CNPF: ASM PH: Consumer Confidence LAND, SMC: CD PH: Markit Manufacturing PH: Consumer Confidence Q2 GTCAP: CD PMI (June), Foreign Ex- change Reserves (June)

05-July-2021 06-July-2021 07-July-2021 08-July-2021 09-July-2021 PCOR: CD PH: Inflation Rate MRC: ASM TUGS, IMP: ASM TFHI: ASM

PH: Balance of Trade

12-July-2021 13-July-2021 14-July-2021 15-July-2021 16-July-2021 LAND: CD CIC:ASM PIZZA, SEVN, HVN: ASM PMPC: ASM

Source : Philippine Stock Exchange (PSE) , Bloomberg , Investing.com

Legend

AB - Analyst Briefing US - United States of America ASM - Annual Stockholders Meeting PH - Philippines LD - Listing Date JP - Japan CD - Cash Dividend (Ex-Date) PMI - Purchasing Managers Index SD - Stock Dividend (Ex-Date) NFP - Non-Farm Payroll SRD: Stock Rights Offering (Ex-date) UR - Unemployment Rate CHN - China

Note: Earnings results are usually published during Analyst Briefing (AB).

Philstocks Research 2021 4 |Page SHARE BUY-BACK TABLE (AS OF JUNE 18, 2021)

COMPANY OUTSTANDING TOTAL SHARES TOTAL AMOUNT AVERAGE BUY-BACK FUND BALANCE % COMPLET- % OF TOTAL O/ COMPANY TICKER SHARES BOUGHT (PHP) (PHP) PRICE (PHP) (PHP) (PHP) ED (%) S*

PGOLD Puregold Price Club, Inc. 2,883,432,615 1,825,000 65,413,452.18 35.8430 5,000,000,000 4,934,586,548 1.31% 0.06% Metro Retail Store Group, MRSGI 3,417,375,000 12,000,000 18,227,786.01 1.5190 300,000,000 281,772,214 6.08% 0.35% Inc.

AGI Alliance Global Group Inc. 9,650,045,579 89,381,800 875,032,491.00 9.7898 2,500,000,000 1,624,967,509 35.00% 0.93%

AXLM Axelum Resources Corp. 3,875,269,500 124,730,500 364,384,967.00 2.9214 500,000,000 135,615,033 72.88% 3.22%

MEG Megaworld Corporation 31,864,950,872 375,995,000 1,126,871,380.00 2.9970 5,000,000,000 3,873,128,620 22.54% 1.18%

Metro Pacific Investment MPI 30,668,798,752 687,057,000 2,714,514,300.65 3.9509 5,000,000,000 2,285,485,699 54.29% 2.24% Corp.

BRN A Brown Company, Inc. 2,414,680,911 62,987,000 56,279,230.00 0.8935 900,000,000 843,720,770 6.25% 2.61%

CLI Cebu Landmasters, Inc. 1,552,400,000 161,600,000 746,483,638.70 4.6193 750,000,000 3,516,361 99.53% 10.41%

PHN Phinma Corporation 272,289,565 14,053,979 2,844,308.00 0.2024 165,500,000 151,446,021 8.49% 5.16%

Robinsons Retail Holdings, RRHI 1,537,104,850 39,384,510 2,271,525,153.00 57.6756 2,000,000,000 -271,525,153 113.58% 2.56% Inc.

RFM RFM Corporation 3,369,549,358 243,031,200 1,078,330,782.00 4.4370 1,400,000,000 321,669,218 77.02% 7.21%

PPC Pryce Corporation 1,927,783,869 96,716,131 460,789,231.30 4.7643 500,000,000 39,210,769 92.16% 5.02%

First Philippine Holdings FPH 498,695,274 110,954,365 7,432,202,295.00 66.9843 11,750,000,000 4,317,797,705 63.25% 22.25% Corp.

CIC Concepcion Industrial Corp 401,855,091 3,650,100 98,349,039.00 26.9442 300,000,000 201,650,961 32.78% 0.91%

ACEN AC Energy Philippines, Inc. 7,507,274,922 14,500,000 28,657,240.00 1.9764 1,000,000,000 971,342,760 2.87% 0.19%

EMP Emperador Inc. 15,739,870,538 98,319,500 964,041,511.00 9.8052 1,000,000,000 35,958,489 96.40% 0.62%

NIKL Nickel Asia Corporation 13,630,850,117 54,422,000 133,653,430.00 2.4559 1,500,000,000 1,366,346,570 8.91% 0.40%

Bloombery Resorts Corpora- BLOOM 10,911,830,257 210,624,002 2,012,715,604.00 9.5560 0.50% tion

HOUSE 8990 Holdings, Inc. 5,391,399,020 126,591,700 1,806,540,154.00 14.2706 2,000,000,000 193,459,846 90.33% 2.35%

AC Ayala Corporation 619,695,649 10,389,210 7,190,198,485.17 692.0833 10,000,000,000 2,809,801,515 71.90% 1.68%

SSI SSI Group, Inc. 3,298,408,430 14,456,000 30,883,310.00 2.1364 200,000,000 169,116,690 15.44% 0.44%

Keppel Philippines Holdings KPH 21,552,349 84,100 462,550.00 5.5000 14,850,000 14,387,450 3.11% 0.39% Inc. A

AEV Aboitiz Equity Ventures, Inc. 5,630,225,457 176,294,900 1,418,236,005.00 8.0447 3.13%

COSCO Cosco Capital, Inc. 7,192,660,964 212,602,600 1,399,482,921.30 6.5826 2,000,000,000 600,517,079 69.97% 2.96%

Megawide Construction MWIDE 2,013,409,717 125,167,780 1,982,567,716.80 15.8393 5,000,000,000 3,017,432,283 39.65% 6.22% Corp.

ALI Ayala Land, Inc. 14,704,895,599 134,784,746 2,927,240,693.00 21.7179 26,070,000,000 23,142,759,307 11.23% 0.92%

FGEN First Gen Corporation 3,597,914,505 63,029,052 1,309,870,658.10 20.7820 300,000,000 236,970,948 21.01% 1.75%

FNI Global Ferronickel Holdings 5,210,312,829 989,628,414 2,415,674,267.00 2.4410 18.99%

Source : Philippine Stock Exchange (PSE), Philstocks Research

Philstocks Research 2021 5 |Page