PSEi Index strong 7,000 level.
PSEi down 2.2% in August
The government announced yesterday the reduction in processing time for new business registration from five days to 1 ½ days to encourage more foreign and local investors. Trade Secretary Ramon Lopez signed a revised joint memorandum circular enjoining all local government units and relevant government agencies to streamline business permits and licensing system using revised standards. Lopez said under the circular, the processing time for new business registration would be cut from five days to 1 ½ days for new business registration and one day for renewals. The circular set the maximum number of procedures for registration at three steps for both new applicants and renewals, with only two signatories from eight signatories previously. The circular also encouraged LGUs to automate and computerize business transactions to hasten frontline services. The revised joint memorandum circular was the result of the combined efforts of the Trade, Information and Communications Technology, Local Government Department and the National Competitiveness Council. Under the new circular, the Information and Communications Technology Department will roll out a common automated platform that will be available first to the Trade Department and the Interior and Local Government Department and soon to all LGUs. The move serves to follow the directive issued by President Duterte for all government offices to cut red tape in their processes and allow the public to have quicker service in all transactions with government units.
The local mart ended slightly lower on late buying after trading deeper in the red for much of the day. The PSEi ended lower by 0.1% to 7,787.37 on value turnover of PhP13bn with eight shares up against ten that declined. The main index closed lower by 2.2% for the month of August. Foreign investors continue to take profits on the market particularly after the announcement of the 1H16/2Q16 GDP last August 18. Since that time, the local stocks ended lower in seven of the last 8 sessions preceding the GDP result. The stock market could be weighed on premium valuations compared to peer-stocks in Thailand and Indonesia. URC emerged most active as it ended unchanged at PhP187. Notable declines today include index shares such as MBT (PhP83.50, - 4%), MPI (6.92, -2.5%), JFC (245, -1.9%), and ICT (84, -1.3%). TEL gained 0.33% to PhP1836 as the Court of Appeals has stopped the PCC from reviewing the PhP70bn deal involving them and rival GLO (1970, -2.5%) acquiring the telecom assets of SMC (84.50, 0%). The court ruled that any decision may have dire impact on the said transaction hence they prohibit any review till the petitions of the telecoms’ are decided by the court. BLOOM (5.58, -4.6%) led the decline of gaming shares as Pagcor had ruled that it would higher fees on the GGR of the casinos operating in the Entertainment City. Recall that Pagcor lowered the tariffs by 10% in 2014 after the BIR decided to impose corporate taxes on the casinos.
Top Foreign Buys- TEL, URC
Top Foreign Sells- AEV, ALI, GTCAP, JFC, MBT, MPI