Quick Take: PSE's planned indices and 2 more market updates
Robinsons Land [RLC 14.06 0.7%; 167% avgVol] [link] receives PRS Aaa rating for its new P15-B bond issuance. This is the second tranche of RLC’s P30-B shelf registration. The rating given by PhilRatings is its highest credit rating for a debt issuance, and it means that (according to PhilRatings) RLC’s capacity to meet its financial obligations is extremely strong and that with a “stable” outlook, that opinion is to remain in place for at least another 12 months.
MB Quick Take: Proceeds will go to refinance debt, so this is just a little bit of corporate debt hygiene from the Gokongwei Family.
Union Bank [UBP 84.85; 20% avgVol] [link] teases Q1/23 net income of P3.4 billion, up 30% over FY21. Net revenues were up 57% y/y, with net interest income up 43% partially driven by the contribution of P3 billion from the acquired Citi consumer business. UBP’s net interest margin grew to 5.21%, up 54 basis points from last year. UBP said that it expects its core income to continue to grow through 2023, but that its expenses might remain elevated through the year because of “one-offs” related to running two systems at the same time (UBP and Citi), and that UBP will “once again generate double-digit Return on Equity” once the integration is complete later this year.
MB Quick Take: The most aggressive bank on the board is showing that it can handle the big bites that it has taken, and still deliver a profit free of chaos and uncertainty. I want a chance to really dig into the segmented analysis of the full earnings report, but this is the kind of news that should embolden UBP and its shareholders as they prepare for another round of fundraising.
PSE [PSE 167.70 4.8%; 4% avgVol] [link] plans to introduce two new sectoral indices by Q4 of this year, as part of a rejuvenation of its existing sectoral indices. When the revamp is completed, the PSE will have eight sectoral indices: Property, Holding Firms, Financials, Industrial, Consumer, Energy and Utilities, Mining and Materials, and Technology, Media and Communications.
MB Quick Take: Not going to lie, the sectors as they are now are almost entirely useless, and the PSE has taken so long to make these updates and adjustments that anyone who could possibly use a sectoral breakdown of the market has already moved on to figure out their own solutions. I’m an optimist about the upside and a realist about the downside.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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