FRI 18 DEC 2020

Top Story:

Economy: BSP holds key rates steady

(AS OF DEC 17, 2020)
INDICES

Other News: Close Points % YTD%

PSEi 7,298.02 -1.68 -0.02 -6.62
All Shares 4,350.29 -0.16 0.00 -6.44
PIP: PIP secures approval of PSE for voluntary delisting of shares Financials 1,506.22 -8.09 -0.53 -19.18
SECB: Moody’s affirms SECB’s rating, outlook Holding Firms 7,560.99 50.05 0.67 -0.41
Industrial 9,477.91 -51.82 -0.54 -1.63
Mining & Oil 9,538.98 -23.45 -0.25 17.88
Property 3,693.70 -34.31 -0.92 -11.09
COVID-19 Update: Services 1,537.49 10.37 0.68 0.42

Total Cases Total Deaths Total Recoveries Dow Jones 30,154.54 -45 -0.15 5.66
S&P 500 3,701.17 6.55 0.18 14.56
Philippines 454,447 (+1,470) 8,850 (+17) 419,902 (+620) Nasdaq 12,658.19 63.13 0.50 41.08

USA 17,607,212 (+210,315) 317,620 (+2,969) 10,142,917 (+154,099)

INDEX GAINERS

Worldwide 75,237,471 (+697,343) 1,667,084 (+12,475) 52,314,482 (+490,678) Ticker Company Price %
DMC DMCI Hldgs Inc 6.15 2.16
GLO Globe Telecom Inc 2040.00 2.00
SM SM Investments Corp 1094.00 1.77
RRHI Robinsons Retail Hldgs 68.00 1.49
Market Summary: ICT Int'l Container Term 124.00 0.81

The local equities market ended flat on Thursday, supported only by last-minute buying
INDEX LOSERS
of blue chip stocks. Ticker Company Price %
SMPH SM Prime Hldgs Inc 37.85 -2.45
The PSEi inched down 1.68 points or 0.02% to end at 7,298.02. The main drags were SECB Security Bank Corp 141.00 -1.88
RLC Robinsons Land Corp 21.30 -1.84
SMPH (-2.45%), SECB (-1.88%), RLC (-1.84%), MPI (-1.82%), and PGOLD (-1.56%). On the
MPI Metro Pacific Inv Corp 4.32 -1.82
other hand, these were mostly offset by gainers such as DMC (+2.16%), GLO (+2.00%), PGOLD Puregold Price Club Inc 40.90 -1.56
SM (+1.77%), RRHI (+1.49%), and ICT (+0.81%).

TOP 5 MOST ACTIVE STOCKS

Value turnover was flat at Php9.3Bil. Meanwhile, foreigners remained net sellers, disposing
Ticker Company Turnover
Php739.8Mil worth of shares. SMPH SM Prime Hldgs Inc 631,859,300
SM SM Investments Corp 410,016,200
MBT Metrobank 357,034,400
BDO BDO Unibank Inc 272,344,700
AC Ayala Corporation 265,607,000

Disclaimer: All content provided in COL Reports are meant to be read in the COL Financial website. Accuracy and completeness of content cannot be guaranteed if reports are viewed outside of the
COL Financial website as these may be subject to tampering or unauthorized alterations.
 DAILY NOTES I PHILIPPINE EQUITY RESEARCH

FRI 18 DEC 2020

Top Story:

John Martin Luciano, CFA Economy: BSP holds key rates steady
Senior Research Analyst

The Monetary Board decided to maintain the interest rate on the BSP’s overnight reverse
repurchase facility at 2.0%. The interest rates on the overnight deposit and lending
facilities were likewise kept at 1.5% and 2.5%, respectively. The decision was based
on its assessment that the inflation environment remains benign. The latest baseline
forecasts have risen slightly due to the sharp increase in global crude oil prices and
the higher-than-expected food inflation in November. However, since the rise in food
prices is transitory, it is expected that the future inflation path will remain firmly within
the government’s 2-4% target over the policy horizon. Meanwhile, the balance of risks
to the inflation outlook leans toward the downside from 2020 to 2022 owing largely
to potential disruptions to domestic and global economic activity amid the ongoing
pandemic. The Monetary Board noted that the resurgence of COVID-19 cases globally
has tempered economic activity with the reimposition of preventive measures in recent
weeks. However, optimism over the delivery of vaccines has lifted market confidence,
supporting improved prospects for global growth. On the domestic front, the Monetary
Board also observed early indications of improved mobility and sentiment. While
recent natural calamities could pose strong headwinds to growth, the further easing of
quarantine measures should help facilitate the recovery of the economy in the coming
months. Given these considerations, the Monetary Board believes that current monetary
policy settings remain appropriate. (Source: BSP)

Other News:

Research Analysts PIP: PIP secures approval of PSE for voluntary delisting of shares

John Martin Luciano, CFA PIP disclosed that the Philippine Stock Exchange (PSE) has approved its petition for
Frances Rolfa Nicolas voluntary delisting, which was filed on September 15. The PSE has accordingly ordered the
Justin Richmond Cheng
delisting of PIP’s shares from their official registry and the delisting shall be effective on
Adrian Alexander Yu
December 18, 2020. Recall that PIP decided to voluntarily delist after its public ownership
Kerwin Malcolm Chan
fell to 2.1%, below the 10% minimum public float required by the PSE. This came after
Lotte Chilsung acquired 30.7% of PIP’s total issued and outstanding shares, equivalent to
1.13Bil common shares, through a tender offer. (Source: PIP, Bworldonline)

COL Financial Group, Inc. 2

 DAILY NOTES I PHILIPPINE EQUITY RESEARCH

FRI 18 DEC 2020

SECB: Moody’s affirms SECB’s rating, outlook

Moody’s Investors Service affirmed SECB’s long-term debt rating of Baa2, citing the
lender’s strong capitalization and profitability. The debt watcher also retained its “stable”
outlook for the bank’s rating, which means the grade could be retained for the next
12 to 18 months. Moody’s said the rating reflects their assumption of moderate level
of systemic support from the government given SECB’s position as one of the biggest
medium-sized banks in the Philippines. It said the bank’s credit strengths lie in its robust
capitalization and stable profitability, supported by lower cost of funds. Meanwhile,
according to Moody’s, an upgrade for the bank’s rating is unlikely in the near future as its
Baa2 grade already matches the country’s sovereign rating. Following this, a downgrade
of the country’s rating could also lead to a lower rating for the bank. (Source: Businessworld)

Changes in Shareholdings
Date of Acquired or Price per
Stock Volume Person (Designation)
Disclosure Disposed share
Alexander C. Yu
18-Dec COL 600 A 28.50
(Vice Chairman)
Source: PSE

COL Financial Group, Inc. 3

 DAILY NOTES I PHILIPPINE EQUITY RESEARCH

FRI 18 DEC 2020

I M P O R TA N T R AT ING DEFINITIONS
BUY
Stocks that have a BUY rating have attractive fundamentals and valuations based on our analysis. We expect the share price to outperform the market in the
next six to 12 months.

HOLD
Stocks that have a HOLD rating have either 1) attractive fundamentals but expensive valuations 2) attractive valuations but near-term earnings outlook might
be poor or vulnerable to numerous risks. Given the said factors, the share price of the stock may perform merely in line or underperform in the market in the
next six to twelve months.

SELL
We dislike both the valuations and fundamentals of stocks with a SELL rating. We expect the share price to underperform in the next six to12 months.

I M P O R TA N T DISC L AIM ER
Securities recommended, offered or sold by COL Financial Group, Inc. are subject to investment risks, including the possible loss of the principal amount invested.
Although information has been obtained from and is based upon sources we believe to be reliable, we do not guarantee its accuracy and said information may
be incomplete or condensed. All opinions and estimates constitute the judgment of COL’s Equity Research Department as of the date of the report and are
subject to change without prior notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of
a security. COL Financial and/or its employees not involved in the preparation of this report may have investments in securities of derivatives of the companies
mentioned in this report and may trade them in ways different from those discussed in this report.

CO L R E S EAR C H T EAM

APRIL LYNN TAN, CFA

VP & HEAD OF RESEARCH
[email protected]

CHARLES WILLIAM ANG, CFA GEORGE CHING RICHARD LAÑEDA, CFA

DEPUTY HEAD OF RESEARCH SENIOR RESEARCH MANAGER SENIOR RESEARCH MANAGER
[email protected] [email protected] [email protected]

JOHN MARTIN LUCIANO, CFA FRANCES ROLFA NICOLAS JUSTIN RICHMOND CHENG, CFA
SENIOR RESEARCH ANALYST RESEARCH ANALYST RESEARCH ANALYST
[email protected] [email protected] [email protected]

ADRIAN ALEXANDER YU KERWIN MALCOLM CHAN

RESEARCH ANALYST RESEARCH ANALYST
[email protected] [email protected]

CO L F IN ANC IAL G R O UP, IN C.

2402-D EAST TOWER, PHILIPPINE STOCK EXCHANGE CENTRE,
EXCHANGE ROAD, ORTIGAS CENTER, PASIG CITY
PHILIPPINES 1605
TEL NO. +632 636-5411
FAX NO. +632 635-4632
WEBSITE: www.colfinancial.com

COL Financial Group, Inc. 5