THU 01 FEB 2018

Other News:

Economy: Bank lending growth slows in December

ICT: ICT starts operations in Papua New Guinea
MAXS: MAXS to bring Pancake House brand to Saudi Arabia (AS OF JAN 31, 2018)
Economy: Domestic liquidity (M3) expands by 11.9% y/y in December INDICES
Close Points % YTD%
Market Summary PSEi 8,764.01 -146.47 -1.64 2.40
All Shares 5,124.83 -69.81 -1.34 2.70
Financials 2,223.98 -20.05 -0.89 -0.28
The PSEi declined last Wednesday, losing 146.47 points or 1.64% to close at 8,764.01.
Holding Firms 8,957.81 -231.96 -2.52 3.96
Industrial 11,790.56 -58.47 -0.49 4.98
Index decliners led gainers 20 to 7, while 3 issues remained unchanged. Most sectors ended in Mining & Oil 11,937.95 -73.57 -0.61 3.78
red with Holding Firms (-2.52%) leading the group. Significant index decliners were SM (-5.96%), Property 3,939.56 -88.82 -2.20 -0.97
Services 1,710.73 4.05 0.24 5.61
RRHI (-3.37%), ALI (-2.86%), SMPH (-2.51%), and LTG (-2.18%). Meanwhile, the significant index
gainers were ICT (+3.18%), GLO (+2.15%), and DMC (+0.70%). Dow Jones 26,149.39 72.50 0.28 5.79
S&P 500 2,823.81 1.38 0.05 5.62
Value turnover increased to Php11.5Bil from Php10.1Bil in the previous session. Meanwhile, Nasdaq 7,411.48 9.00 0.12 7.36

foreigners continue to be net sellers for the fourth consecutive day, liquidating Php2.3Bil worth
of shares. INDEX GAINERS
Ticker Company Price %
ICT Int'l Container Term 113.50 3.18
GLO Globe Telecom Inc 1900.00 2.15
DMC DMCI Hldgs Inc 14.40 0.70
AGI Alliance Global Inc 15.34 0.26
AP Aboitiz Power Corp 41.00 0.24

INDEX LOSERS
Ticker Company Price %
SM SM Investments Corp 1025 -5.96
RRHI Robinsons Retail Hldgs Inc 94.6 -3.37
ALI Ayala Land Inc 44.25 -2.96
SMPH SM Prime Hldgs Inc 36.9 -2.51
LTG LT Group Inc 22.45 -2.18

TOP 5 MOST ACTIVE STOCKS

Ticker Company Turnover
SM SM Investments Corp 1,267,581,000
ALI Ayala Land Inc 983,983,600
BDO BDO Unibank Inc 741,958,000
SMPH SM Prime Hldgs Inc 537,771,500
AC Ayala Corporation 276,639,600

Disclaimer: All content provided in COL Reports are meant to be read in the COL Financial website. Accuracy and completeness of content cannot be guaranteed if reports are viewed outside of
the COL Financial website as these may be subject to tampering or unauthorized alterations.
 DAILY NOTES I PHILIPPINE EQUITY RESEARCH

THU 01 FEB 2018

Other News:

RESEARCH ANALYSTS Economy: Bank lending growth slows in December

FRANCES ROLFA NICOLAS
ANDY DELA CRUZ
Credit growth during the month of December expanded at a slower rate of 19.0% from 19.3%
JUSTIN RICHMOND CHENG
(revised) in the previous month. Loans for production activities grew by 18.5%, driven mainly
KYLE VELASCO
by the increased lending to the following sectors: real estate activities (+19.3%); electricity,
JOHN MARTIN LUCIANO
ADRIAN ALEXANDER YU gas, steam and airconditioning supply (+25.4%); wholesale and retail trade, repair of motor
vehicles and motorcycles (+20.1%); manufacturing (+11.7%); and, financial and insurance
activities (+16.8%). Meanwhile, growth in loans for household consumption moderated to
17.2% in December from 20.6% in November as the slower increase in motor vehicle loans
and salary-based general purpose loans offset the faster growth in credit card loans and other
types of household loans. (Source: BSP)

ICT: ICT starts operations in Papua New Guinea

ICT said it has started operations (based on a 25 year terminal operation agreement) at the
Lae Tidal Basin in Papua New Guinea. ICT will first roll out the terminal’s new operating system
followed by the delivery of mobile harbor cranes.

MAXS: MAXS to bring Pancake House brand to Saudi Arabia

MAXS has partnered with Al-Bader National Establishment for Real-Estate Development,
a Jeddah-based company, to open 12 Pancake House branches in Saudi Arabia. Al-Bader
National Establishment has been searching for a renowned brand to spearhead its venture
into the food sector and believes that Pancake House’s assorted menu mix and all-day dining
concept should be appealing to various demographic profiles. This is also part of MAXS effort
to open around 20 to 30 international stores this year with a target of around 200 international
stores by 2020. (source: BusinessWorld)

Economy: Domestic liquidity (M3) expands by 11.9% y/y in December

Preliminary data from the BSP showed that domestic liquidity (M3) grew by 11.9% y/y to
Php10.6Tril in December 2017, slower than the 14.0% expansion in the previous month. On
a m/m seasonally-adjusted basis, M3 increased by 0.7%. Domestic claims grew by 13.4% in
December, lower than the 14.7% increase in November, as growth in credit to the private
sector eased to 15.7% from 16.0%. Likewise, net claims on the central government grew at
a slower pace of 2.2% from 10.2% as the deposits of the National Government with the BSP
increased. Net foreign assets (NFA) in peso terms grew by 2.3% y/y in December from 1.9% in

COL Financial Group, Inc. 2

 DAILY NOTES I PHILIPPINE EQUITY RESEARCH

THU 01 FEB 2018

the previous month. The increase in BSP’s NFA position was driven by foreign exchange inflows
from overseas Filipinos’ remittances, business process outsourcing receipts, and foreign
portfolio investments. On the other hand, the NFA of banks also continued to expand but at a
slower pace as growth in banks’ foreign assets eased on account of lower interbank loans and
deposits with other banks. (source: BSP)

COL Financial Group, Inc. 3

 DAILY NOTES I PHILIPPINE EQUITY RESEARCH

THU 01 FEB 2018

IMPORTANT RATING DEFINITIONS

BUY
Stocks that have a BUY rating have attractive fundamentals and valuations based on our analysis. We expect the share price to outperform the market in the next six to
12 months.

HOLD
Stocks that have a HOLD rating have either 1) attractive fundamentals but expensive valuations 2) attractive valuations but near-term earnings outlook might be poor
or vulnerable to numerous risks. Given the said factors, the share price of the stock may perform merely in line or underperform in the market in the next six to twelve
months.

SELL
We dislike both the valuations and fundamentals of stocks with a SELL rating. We expect the share price to underperform in the next six to12 months.

IMPORTANT DISCLAIMER
Securities recommended, offered or sold by COL Financial Group, Inc. are subject to investment risks, including the possible loss of the principal amount invested.
Although information has been obtained from and is based upon sources we believe to be reliable, we do not guarantee its accuracy and said information may be
incomplete or condensed. All opinions and estimates constitute the judgment of COL’s Equity Research Department as of the date of the report and are subject to change
without prior notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of a security. COL Financial and/
or its employees not involved in the preparation of this report may have investments in securities of derivatives of the companies mentioned in this report and may trade
them in ways different from those discussed in this report.

COL RESEARCH TEAM

APRIL LYNN TAN, CFA

VP & HEAD OF RESEARCH
april.tan@colfinancial.com

CHARLES WILLIAM ANG, CFA GEORGE CHING RICHARD LAÑEDA, CFA

DEPUTY HEAD OF RESEARCH SENIOR RESEARCH MANAGER SENIOR RESEARCH MANAGER
charles.ang@colfinancial.com george.ching@colfinancial.com richard.laneda@colfinancial.com

FRANCES ROLFA NICOLAS ANDY DELA CRUZ JUSTIN RICHMOND CHENG

RESEARCH ANALYST RESEARCH ANALYST RESEARCH ANALYST
rolfa.nicolas@colfinancial.com andy.delacruz@colfinancial.com justin.cheng@colfinancial.com

KYLE JEMMRIC VELASCO JOHN MARTIN LUCIANO ADRIAN ALEXANDER YU

RESEARCH ANALYST RESEARCH ANALYST RESEARCH ANALYST
kyle.velasco@colfinancial.com john.luciano@colfinancial.com adrian.yu@colfinancial.com

COL FINANCIAL GROUP, INC.

2402-D EAST TOWER, PHILIPPINE STOCK EXCHANGE CENTRE,
EXCHANGE ROAD, ORTIGAS CENTER, PASIG CITY
PHILIPPINES 1605
TEL NO. +632 636-5411
FAX NO. +632 635-4632
WEBSITE: www.colfinancial.com

COL Financial Group, Inc. 5