Daily Notes INDEX

DAILY MARKET STATS

VALUE PTS PCT YTD

Wednesday, July 22, 2020
PSEI 6,136.31 -14.39 0.23% -21.48%
Reference: Claire T. Alviar ALL 3,599.72 -5.96 -0.17% -22.58%

Eagle Cement Corporation [pse:EAGLE] FIN 1,184.97 -12.43 -1.04% -36.42%

IND 7,470.99 -36.60 -0.49% -22.46%

HOLD TP (TA): Php 10.00 HDG 6,479.88 17.15 0.27% -14.65%

PRO 2,979.93 -22.21 -0.74% -28.27%

SVC 1,429.96 8.11 0.57% -6.61%

STOCK SNIPPETS
M&O 5,093.76 48.41 0.96% -37.05%
Last Traded Price (PHP) 9.90

P/E Ratio (x) 9.08

• It strengthens balance sheet to face ASIAN MARKETS (AS 04:52 PM)

the impact of Covid-19 pandemic. INDEX VALUE PTS PCT YTD

P/B Ratio (x) 1.40
• Expansion plan continues to secure Nikkei 225 22,884.22 166.74 0.73% -3.27%
Support 9.75
future growth.
Hang Seng 25,635.66 577.67 2.31% -9.06%
Resistance 11.00
• Liquidity, however, is low. Shanghai 3,320.89 6.75 0.20% 8.88%
MTD Performance (%) 0.00%
KOSPI 2,228.83 30.63 1.39% 1.42%
YTD Performance (%) -33.38%
HCM 861.69 0.29 0.03% -10.33%

SET 1,372.89 14.60 1.07% 13.10%

STI 2,632.10 15.80 0.60% -18.33%

OUR VIEW KLCI 1,595.12 5.67 0.36% 0.40%

JCI 5,114.71 63.60 1.26% -18.81%

INTERNALS

VOL 2,521,869,527 ADV 95

VAL 4,361,096,428.07 DEC 89

BLOCK 94,705,481.75 UNCH 51

Hunt for bargains amid positive sentiment abroad brought by the vaccine hopes. But still, be cau-
tious as most investors remained on the sidelines given the uncertainty on the next quarantine
measures while Covid-19 cases in Metro Manila increasing. Value turnover for this week has been
declining vs last week's average.

Psychological support is at 6,000.

TOP 5 GAINERS TOP 5 LOSERS

AEV 4.14% URC –2.94%

ICT 4.12% RLC –2.88%

AC 2.00% GTCAP –2.70%

Source: TradingView
MEG 1.92% SMPH –2.21%

MARKET WRAP JGS 1.79% BDO –1.94%

OTHER MARKET SNAPSHOTS (AS 05:00 PM)

Monday’s weak rally triggered profit taking yesterday, pulling PSEi to 6,136.31 (-0.23%) or –14.39
Brent Crude 44.27 2.29%
points down. Most investors were on the wait-and-see mode as they closely monitor the daily report
of Covid-19 cases, particularly in Metro Manila since if cases did not slowdown, there would be a WTI Crude 41.78 2.10%
higher chance of stricter lockdown measures in NCR. Gold 1,825.70 0.46%

There's also a recommendation from some senators to revert NCR to enhanced community quar- Silver 20.82 3.13%

antine (ECQ) which is the most stringent measures, spilling more negative sentiment in the market. Copper 2.93 0.75%
ECQ would cost substantial damage in the economy that's why the palace may not consider this US$:Php 49.38 0.01%
since we're still in the middle of economic recovery. However, Modified Enhanced Community quar-
US 10 Yr Yield 0.62% -3.13%
antine (MECQ) would still put damages, or it may hinder the gradual recovery but lesser damage
than ECQ's potential losses. Take note that, Metro Manila recorded 5 straight days of 1000+ cases
in a single day, increasing the chances of stricter guidelines.

Philstocks Research 2020 1 |Page

LOCAL NEWS Philstocks Research
JUSTINO B. CALAYCAY, JR
Infrastructure and capital spending declined in May. Department of Budget and Management AVP-Head, Research & Engagement
(DBM) data showed that infrastructure and capital spending dropped to P38.9 billion or 36.7% down +63 (2) 8588-1962
from P61.5 billion in the same month last year, and lower than April’s spending of P40.1 billion this
year. Given this, it pulls the year-to-date data, declining 12.2% to P235.2 billion from P267.9 billion JAPHET LOUIS O. TANTIANGCO
last year. The department says that the May figure resulted from the construction ban during the Sr. Research Analyst
enhanced community quarantine in most of Luzon and some areas in the Visayas regions. While for +63 (2) 8588-1927
the first five months, high base effect was also one of the reasons.
PIPER CHAUCER E. TAN
First half earnings of construction firms and allied services may not come good given the suspension Engagement Officer/Research Associate
of construction activities but this is one of the sectors that most likely will recover soon in the second +63 (2) 8588-1928
half as the government urged to prioritize infrastructure projects as it would largely help in the
CLAIRE T. ALVIAR
economic recovery.
Research Associate
+63 (2) 8588-1925

Ground Floor, East Tower

PSE Center, Tektite Towers
GLOBAL NEWS Ortigas Center, Pasig City
PHILIPPINES
Pfizer-BioNTech showed positive additional data. German biotech form BioNTech and US
drugmaker Pfizer showed additional data from their experimental Covid-19 vaccine that it is safe
DISCLAIMER
and induced an immune response in patients.
The opinion, views and recommendations
Positive results coming from vaccine trials would provide positive sentiment in the market and we contained in this material were prepared by
may see a short term rally as investors priced in these developments. On the other hand, if these the Philstocks Research Team, individually
turned to disappoint investors, be cautious as sell-off may trigger. But as of the moment, vaccine and separately, based on their specific
hopes helped the market to recover. sector assignments, contextual framework,
personal judgments, biases and prejudices,
time horizons, methods and other factors.
The reader is enjoined to take this into
COMPANY NEWS account when perusing and considering the
contents of the report as a basis for their
stock investment or trading decisions.
HOLD Eagle Cement Corporation [pse:EAGLE] Furthermore, projection made and presented
in this report may change or be updated in
The company strengthened its balance sheet in the first quarter to cushion the impact of Covid-19 between the periods of release. Ergo, the
pandemic on the economy and continues major expansions plans to secure future growth. Eagle allot- validity of the projections and/or estimates
ted P1.5 billion capital expenditure for the construction of its fifth cement mill in San Ildefonso, Bulac- mentioned are good as of the date indicated
and may be changed without immediate
an.
notification.
First half financial result will not be good given the stoppage of construction works mainly during the This report is primarily intended for
Enhanced Community Quarantine (ECQ), but we think that construction activities will recover in the information purposes only and should not be
second half and earnings recovery will follow as well. But this stock has low liquidity. considered as an exclusive basis for making
investment decision. The recommendations
Currently in sideways movement. Support is at P9.75, next support is at P8.80. Resistance, mean- contained in this report is not tailored-fit any
while, is peg at P11.00. particular investor type, situation, or
objective and must not be taken as such.
Determining the suitability of an investment
remains within the province of the investor.
Our estimates are based on information we
believe to be reliable. Nevertheless, nothing
in this report shall be construed as an offer
of a guarantee of a return of any kind and at
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

Source: TradingView
price in the next 9-12 months
TRADE - A potential 10% and above short-term upside
base on entry price and selling price.

Philstocks Research 2020 2 |Page