Daily Report

February 2, 2018
What’s Brewing
@ FirstMetroSec Equities Summary | Commentary | Corporate Calendar | Economic Calendar

PSE Index (12-month period) Equities Summary

9,500 The PSEi failed to hold on to gains during late trade and fell to
negative territory after the auction, after -28 points were shed
PSEi
9,000 due to MOC sell-downs. Foreigners ended as net sellers for a 5th
day, on higher inflation bets after BSP said it sees Jan. CPI settling
8,500
within 3.5% to 4%. Market breadth, however, ended positive,
8,000 following US stocks after the Fed left rates unchanged.

7,500 PSEi 8,738.72 (-25.29pts; -0.29%); Val T/O: P6.85 Bn;

$133.05Mn (ex-block)
7,000

6,500
*Net foreign selling ended at P-1,359.16Mn, P2,838.76Mn pur-
Feb-17 Mar-17 May-17 Jul-17 Aug-17 Oct-17 Dec-17 Jan-18 chases, P4,197.91Mn sales.
Index V alue T urnov er (in P mn)
Last 8,738.7 Last (ex-blocks) 6,847.3 *Index Breadth: 8 up; 19 down; 3 unchanged.
% Change (0.29)% 3-Month Average 7,319.3
YTD % Change 2.1% 6-Month Average 7,208.1
*Market Breadth: 113 up; 88 down; 54 unchanged.
V aluat ion (x) M ark et Breadt h
Price-to-Earnings T12M 23.0 Gainers 113
Price-to-Earnings F12M
Price-to-Book
19.1
2.8
Losers
Unchanged
88
54
*Index Leaders: ALI (+2.49%), BPI (+0.59%), JFC (+0.84%), MPI
Dividend Yield (%) 1.4 (+0.62%), PCOR (+1.56%)
F oreign A ct iv it y (in P mn) PLDT
Buy 2,838.8 TEL Last Price (PhP) 1,556.0
Sell
Net Foreign
4,197.9
(1,359.2)
TEL ADR Last Price (US$)
in PhP
30.4
1,567.0
*Index Laggards: AEV (-2.02%), SMPH (-1.08%), AC (-1.14%),
ICT (-2.38%), JGS (-0.65%)
Global Indices
US M a rk e ts Price Chg DoD % YT D % P/E T 12M P/E 2017F INTERNATIONAL
Dow Jones Industrial Ave. Index US 26,186.71 37.3 0.1% 5.9% 27.4x 18.1x Stocks close lower in choppy session as higher rates snuff out
S&P 500 Index US 2,821.98 (1.8) (0.1)% 5.5% 24.2x 18.3x
Nasdaq Comp. Index US 7,385.86 (25.6) (0.3)% 7.0% 26.3x 21.0x
rally
Europe a n M a rk e ts
Oil rises as OPEC compliance eclipses boom in U.S. output
Euro Stoxx 50 Index EU 3,577.35 (31.9) (0.9)% 2.1% 17.0x 14.2x Yellen leaving Fed Saturday, Powell to be sworn as new Fed
HDAX index
FTSE 100 Index
GER
UK
7,082.51
7,490.39
(91.6)
(43.2)
(1.3)%
(0.6)%
1.1%
(2.6)%
16.9x
20.2x
14.4x
14.4x
chair on Monday
CAC 40 Index FR 5,454.55 (27.4) (0.5)% 2.7% 16.9x 14.8x

As ia Pa cific LOCAL
Philippine Stock Exchange Index PH 8,738.72 (25.3) (0.3)% 2.1% 23.0x 19.1x
Tax hikes temper demand, manufacturing sector growth
Nikkei 225 JPN 23,486.11 387.8 1.7% 3.2% 19.0x 17.8x
Hang Seng Index HK 32,642.09 (245.2) (0.7)% 9.1% 14.9x 12.8x BSP vows to cut bank deposit reserves
FTSE Straits Times Index SG 3,547.23 13.2 0.4% 4.2% 12.1x 14.5x BSP buys P1.5M worth of Cordillera gold amid lower withhold-
ASX 200 Index AUS 6,090.10 52.4 0.9% 0.4% 16.3x 12.6x
Shanghai SE Comp Index CHN 3,446.98 (33.9) (1.0)% 4.2% 15.8x 12.9x
ing tax
Korea SE KOSPI Index SKR 2,568.54 2.1 0.1% 4.1% 12.1x 11.1x DOE to hold power players accountable during forced outages
Jakarta SE Comp. Index
FTSE Bursa Malaysia KLCI Index
IDN
MY
6,598.46
1,868.58
(7.2)
(1.9)
(0.1)%
(0.1)%
3.8%
4.0%
19.3x
16.6x
17.1x
16.8x
Tourist arrivals up 11% in 2017
SET Index TH 1,833.60 6.7 0.4% 4.6% 17.7x 16.4x Mighty deal boosted ‘sin’ tax take in ’17

First Metro Phil. Equity ETF (FMETF) CORPORATE

Report Date Thursday, February 1, 2018
Metrobank’s 2017 Core Income up 10%
NAV per share 132.33 SM backs out of Goldilocks takeover deal
Closing Price 133.00
Max’s to open Pancake House in Saudi Arabia
Total # of Issued Shrs (in '000) 11,072 RLC opens office hub in Ilocos Norte
Total # of Outstanding Shrs (in '000) 11,122 DoubleDragon to open Hotel101 in Boracay
Tracking Error 0.05% PAL ramps up China operations

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 Daily Report
Equities Summary | Commentary | Corporate Calendar | Economic Calendar

Corporate
Metrobank’s 2017 Core Income up 10%
Metropolitan Bank & Trust Co (MBT) reported FY17 earnings of P18.2bn (+0.6% y-o-y). Excluding the P1.8bn provisions
booked in relation to an internal fraud case, FY17 net income would have grown by 10% y-o-y. Net interest income (NII)
grew 16% y-o-y to P61.4bn on the back of 19% loan growth and 21-bp increase in net interest margin (NIM). Expansion
in loans was mainly driven by the commercial segment, which grew by 20% y-o-y. The consumer segment, which makes
up 26% of the total loan portfolio, rose by 17% y-o-y. NIM reportedly rose by 21bps to 3.75%, lifted by higher asset
yields from increase in term loans as some corporates borrowed ahead of the anticipated increase in interest rates. Fur-
thermore, the bank ended FY17 with cost-to-income ratio at 56% as opex growth of 6% was slower than our assumed
10% growth. Management cited reduced hiring and merged branches as main cause of slower opex growth. Mean-
while, MBT ended FY17 with total CAR at 14.4% and consolidated CET1 ratio at 11.8%, 100bps and 30bps lower q-o-q
respectively.

SM backs out of Goldilocks takeover deal

SM Investments Corporation’s (SM) subsidiary, SM Retail Inc. (SM Retail) has abandoned its plan to buy the country's
largest bakeshop chain, Goldilocks Bakeshop Inc. (Goldilocks). Circumstances surrounding both parties have changed
and SM Retail had to reassess the commercial aspects of the transaction. Both companies confirmed that this was a mu-
tual decision.

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 Daily Report
Equities Summary | Commentary | Corporate Calendar | Economic Calendar

Corporate Calendar

February 2018
SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY

1 2 3
SRS- RLC

4 5 6 7 8 9 10
CD- PSE ABD- GLO CD- UBP SRE- RLC
SMD- VMC
CD- ALCO

11 12 13 14 15 16 17
ABD- ALI

18 19 20 21 22 23 24
SMD- ROX

25 26 27 28 29 30
CD- LR

Legend: ABD = Analysts’ Briefing EOE = ETF Offer End

SRD = SRO Ex-Date SRE = SRO End PD = Property Ex-Date
SMD = Stockholders’ Meeting EOS = ETF Offer Start SRL = SRO Listing
SRS = SRO Start STD = Stock Ex-Date OFE = Offer End
LD = Listing Date EDD = ETF Dividend Ex-Date WED = Warrant Exp Date
CD = Cash Ex-Date OFS = Offer Start

Source: Philippine Stock Exchange

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 Daily Report
Equities Summary | Commentary | Corporate Calendar | Economic Calendar

Economic Calendar

February 2018
SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY

1 2 3
PH- PMI Manufacturing US- Jobs Report
Index
US- Jobless Claims
US- PMI Manufacturing
Index

4 5 6 7 8 9 10
PH- CPI PH- Forex Reserves PH- Monetary PH- Balance of Trade
US- International Trade Board(MB) Meeting
US- Jobless Claims

11 12 13 14 15 16 17
PH- Foreign Direct US- CPI PH- OF Remittances
Investments US- Retail Sales US- Jobless Claims

18 19 20 21 22 23 24
PH- Balance of US- FOMC Minutes US- Jobless Claims
Payments Position US- Existing Home
Sales

25 26 27 28 29 30
US- New Home Sales US- Durable Goods US- GDP US- Jobless Claims
Orders

Source: Wall Street Journal, Bloomberg

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 Daily Report

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accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however,
the information is provided “as is” without warranty of any kind and First Metro Securities, in particular, makes
no representation or warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability,
or fitness for any particular purpose of any such information. Under no circumstances shall First Metro Securities
have any liability to any person or entity for any loss or damage in whole or in part caused by, resulting from, or
relating to, any error (negligent or otherwise) or other circumstance or contingency within or outside the control
of First Metro Securities. The information contained herein is, and must be construed solely as, statements of
opinion and not statements of fact or recommendations to purchase, sell, or hold any securities. This document,
and any opinion contained herein, must be weighed solely as one factor in any investment decision made by or
on behalf of any user of the information contained herein, and each such user must accordingly make his/her
own study and evaluation of each security and of each issuer that it may consider purchasing, selling, or holding.

First Metro Securities Brokerage Corp.

Research Department
18/F PSBank Center

777 Paseo de Roxas cor. Sedeño St.

Makati City 1226

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