Some random news tidbits.
Those that I hope you’ve read about somewhere.
If it’s the first time you’re hearing these, then I suggest you Google some more so you can read the details.
SMDC and SMPH are already finished with their annual stockholders meetings. Was hoping to get more concrete news on a possible merger of the former to the latter. But not much details were provided really. Still a work in progress I suppose. For the meantime, stocks rise and fall with the tides of the market. Some have observed that the two stocks tend to move to opposite directions, maybe because if SMDC becomes more and more expensive, SMPH will have to shell out more.
SM Aura Premier in Global City opened this month. It opened with the bang and flair it wanted, plus some more unintended publicity. It currently has issues with BCDA (or maybe it’s Taguig LGU vs BCDA?) over the piece of land where it was built and the necessary roads for further construction. Some even opined that this is a proxy war between Ayalas (behind BCDA) and SM (which benefited from the land donated to Taguig government which SMPH bought / leased). Let’s see how this progresses, but if you ask me, welcome to Global City SM Aura (someone actually asked me if it’s walking distance from Grace Residences. So excited). But as trade-off, more traffic jams in BGC!
Not the bird but the smuggling case against Phoenix Petroleum was somewhat reborn, as the case was reopened again. As expected, this sent the stock price tumbling down. But oil prices continue to go up.
As many expected but not too soon, S&P upgraded the credit rating of the Philippines, shortly after Fitch initiated its own upgrade. Some would say that with this second upgrade, we are now officially under the radar of fund management companies abroad as they usually require that investments be made only on ‘investment grade countries.’ And that the Fitch upgrade is usually used more for tie-breaking / 2nd opinion purposes, the ratings provided by S&P and Moody’s are what they usually rely on. So now we’re waiting for Moody’s to further lighten the mood with their own upgrade. And of course the FDI concern and trickle down effects of these upgrades to the common Juan.
PSE recently breached another psychological barrier of 7400 but did not stay there for long. Recent days have in fact shown some serious correction, with market today ending in bloody reddish sub7000! Ended at 6953 today. Market seemed to ignore the very good GDP growth for the quarter as concerns on China, Japan and US plus profit taking dominated our small market. Hoping that this healthy correction ends soon.
This is no new news. National Bookstore shall enlist backdoor via Vulcan Industrial and Mining Corp (VUL). First official news actually came out around last month which sent the VUL stock price erupting upwards due to speculation and anticipation. Well VUL finally had its annual stockholder’s meeting yesterday approving the enlistment of NBS (and the change in stock code, capital infusion, change in corporate structure, nature of business etc). The catch, target date is 1Q2014 which prompted the sell down of VUL stock today. Market was expecting that it would come sooner but as some would say, documentation and preparations need enough time for this to be done right. Add the fact that the whole market is correcting in general so stock was really battered NBS-red today.
Mining, Gambling este Gaming
Some progress on government policies on gambling and mining, in terms of revenue sharing and taxation. At least it helps minimize the impact of this deep correction for gaming and mining stocks. On the other hand, PX will be fined with more penalties as filed by Napocor.
12 New Senators
Good luck to those who won and good luck to us for electing them. Whether we voted for them or not, they are our Senators now. And if we want a deserving and competent President by 2016, Jim Paredes is right. We have 3 years to do massive voter’s education.