The Philippine Stock Exchange index (PSEi) closed at 7,102 on Wednesday, December 9, lower by 1.4%, with the lack of catalysts to entice traders to buy stocks.

Half of the blue chips shed value, as investors generally thought that the index stocks were already overbought.

Despite the fall on Wednesday, Arnel Pepito, portfolio manager of Eastern Securities and co-founder of Stocks Ed, said the PSEi’s “bullish trend is still intact above major moving averages.”

“Market is expected to mirror its signal from global markets this month, along with holiday consumer spending,” Pepito said.

He noted that the current psychological support is at the 7,000 level, while the resistance area is at the 7,300 to 7,400 level.

Pepito said conglomerate stocks are expected to keep pulling back this week and might give a good buy entry.

A total of 99.2 billion shares valued at P9.88 billion were traded on Wednesday. Foreign buying stood at P3.68 billion, while foreign selling was at P4.37 billion.

Corporate news

DFNN – DFNN, through its subsidiary Inter-Active Entertainment Solutions Technologies, was granted the Philippines’ first license to operate an online gaming platform.

However, its new remote gaming platform called InPlay is only available to VIP players.

DFNN chief executive officer Calvin Lim emphasized that players undergo eligibility and registration procedures. The platform also ensures that all transactions are legal and won’t be prone to money laundering.

“The main focus now should be combating illegals and the industry should work in unison to do so. Illegal online casino has been flourishing, becoming so creative as to engage agents/affiliates in order to differentiate themselves by forming clubs to recruit players,” Lim said.

MPIC – Metro Pacific Investments Corporation (MPIC) and partner Keppel Infrastructure Trust (KIT) are set to acquire Philippine Coastal Storage and Pipeline Corporation (PCSPC), the largest petroleum products import terminal in the country.

MPIC will initially hold a 20% stake in Philippine Tank Storage International Holdings, the parent of PCSPC, for $67 million (P3.2 billion).

MPIC and KIT are discussing giving MPIC an option to increase its interest in PCSPC up to 50%.

PCSPC is the largest independent petroleum storage facility in the Philippines with a storage capacity of over 6 million barrels, when it completes an expansion in 2021.

Century Pacific – Food company Century Pacific Food (CNPF) extended and expanded its long-term agreement with Vita Coco.

CNPF said the multiyear contract, valued at $165 million (around P8.2 billion), is part of the expansion program of its coconut business.

CNPF is investing an additional P300 million for its coconut products as global demand rises amid the pandemic.

“For CNPF, our growing presence in the global coconut market is in line with our long-term vision of a diversified portfolio of shelf-stable food and beverage products,” said CNPF executive chairman Christopher Po.

“We will continue to leverage on our manufacturing expertise to capitalize on emerging global trends, particularly towards health and wellness products.” – Rappler.com