DA Market Securities 
No Comments DA Market Securities Morning Brief January 25, 2013
S&P little changed after topping 1,500 earlier; Apple posted its worst slump in four years. AP, CEB, CPG, JGS, SMC, AC, AEV, MPI, PEC, PX, PXP, URC, Cement, Construction, Policy Rates, SDA, Inflation, GDP, FDI.
International
S&P 500 was little changed, after topping 1,500 earlier in the day, as the worst slump for Apple Inc. in four years pulled technology shares lower and overshadowed better-than-forecast earnings.
Local / News
AP downgraded to “Neutral” from “Overweight” at JPMorgan by equity analyst; target price P36/share.
CEB missed 14-million passenger target for 2012 but managed to grow traffic by double-digits. CEB flew 13.26 million passengers last year, or 11 percent more than the 11.93 million in 2011. The increase is attributed to the expansion of its domestic and international operations.
CPG exceeded its P20-billion pre-sales target for 2012, hitting P21.4 billion, up 16.6% from the P18.4 billion recorded the previous year. In 2013, Century plans to complete and turn over five buildings with 4,607 units with 200,564 square meters of net saleable area.
http://business.inquirer.net/104241/century-properties-exceeded-p20b-sales-target-for-2012
Carrier operators JGS, SMC would be barred from participating in the bidding for the expansion and operation of the Mactan-Cebu International Airport possible conflict of interest. If the ban is not lifted, only the AC-AEV consortium and MPI will be left in the running for the project.
PEC expects to start operating within the year its two new compressed natural gas (CNG) facilities. These stations will be the first batch of projects under the DOE’s planned P400-million capital investment for the construction of CNG facilities all over Luzon. It was, however, not made clear how much will PNOC-EC price the CNG, which was previously sold for P14.25 a liter.
http://business.inquirer.net/104237/new-cng-facilities-to-start-running-in-13
PX received instead an order barring it from using its tailings pond and to pay a P92.8 Million fine from the Pollution Adjudication Board (PAB). The notice of issuance by the PAB said the order shall remain in effect until the Tailings Pond No. 3 shall have been completely restored and its structural integrity ensured as confirmed and certified by the Mines and Geoscience Bureau (MGB).
(PXP) The PHL government’s recent decision to elevate its sea dispute with China to a United Nations tribunal has put MVP’s business interests in SC72 at a standstill. “The arbitration proceedings in the UN could take years — 3? 4? or 10? I have no idea. I guess the natural question to ask is, will our governments — both the Chinese government (and the Philippine government) — allow CNOOC and ourselves to enter into commercial discussions. At this stage we don’t know,” said MVP.
URC approved the company’s entry into the power generation business. The company will put up a 40MW cogeneration plant alongside its sugar mill in Negros. The company is looking to invest $1.5 million per MW for the facility, which will run on sugarcane byproducts. URC will use internally generated funds to bankroll the project; completion of first phase slated for 2014.
URC may also put up similar facilities in other company-owned sugar mills “if it becomes successful and if we can expand other mills.” URC has five mills located in Negros, Iloilo and Cagayan Valley. URC is also looking at anything that is a major sector and power is a major sector
Local / Sector
Cement, Construction
The Cement Manufacturers’ Association of the Philippines (CeMAP): Sales of cement hit a record in 2012 boosted by the real estate boom and government infrastructure spending – 18.4 million metric tons (mmt) of cement were sold in 2012, reflecting a 17.5% increase from the previous year’s 15.6 mmt. The group expects cement sales to remain strong in 2013, an election year. Ordoñez noted that cement demand traditionally increases during an election year.
CeMAP groups CEMEX Philippines, Holcim Philippines Inc, Lafarge Republic Inc, Northern Cement Corp, Pacific Cement Philippines Inc and Taiheiyo Cement Philippines Inc
Local / Economy
BSP kept policy rates steady at 3.5% for overnight borrowing and 5.5% for overnight lending but slashed interest rates on special deposit accounts (SDAs) to 3%, regardless of tenor, effective immediately, to discourage dollar inflows that have been pushing up the peso to uncompetitive levels. SDA placements are nearly at Php 1.7 trillion.
Latest BSP estimates: Inflation may average at 3% this year and 3.2% next year. The government sees the economy growing (GDP) by 6 to 7% this year.
http://business.inquirer.net/104275/bsp-maintains-policy-rates-cuts-sda-yield
UNCTAD: Despite an overall 7% decline in Foreign Direct Investment (FDI) inflows to the Association of Southeast Asian Nations, preliminary data show that inflows to Cambodia, Myanmar, the Philippines (+15%), Thailand (3.9%) and Vietnam (+12.5%) grew in 2012. Indonesia posted flat growth, Singapore fell 15.1%. But the PHL trails behind in terms of absolute figures posting P1.5 billion vs. Vietnam $8.4 billion; Thailand, $8.1 billion; Indonesia, $19.2 billion; and Singapore, $54.4 billion.
FDI flows to developing economies remained relatively resilient in 2012, reaching $680 billion, the second highest on record. Developing economies absorbed an unprecedented $130 billion more than developed countries. Global FDI flows, however, fell by 18% to an estimated $1.3 trillion from a revised $1.6 trillion in 2011, as significant investor uncertainty continued to hamper recovery.
http://www.interaksyon.com/business/53463/fdi-flows-to-philippines-outpace-asean-neighbors-in-2012
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