PSE Stocks of the Week: The BPI-PNB-ABC Merger

The Philippine Stocks Market reached another new highs last week amid talks of merger between Bank of the Philippine Islands (PSE:BPI) and Philippine National Bank (PSE:PNB). PNB in itself is in the final stages of a merger with Allied Banking Corporation (PSE:ABC) with PNB as the surviving entity. 

Needless to say the market was ecstatic on the news. Financials sub-index alone jumped by 5.08% or 71.55 within a week. The merger, once finalized, will create the biggest bank in terms of asset. BDO Unibank (PSE:BDO) currently hold the distinction with P1.15 trillion. BPI, PNB and ABC's combined assets is estimated at P1.20 trillion. The merger also brings in two big names in business today. Ayala group (PSE:AC) currently own the largest stake in BPI while PNB and ABC are both owned by Lucio Tan's LT group (PSE:LTG). Early reports say that the proposed merger will be done via share swap, which will make LTG the second largest owner of BPI with 20% stake, while AC will own 33%.

For investors, what's important to note is how much will BPI prices the acquisition. LTG eyes the deal at around P95-P96 or 1.8 times PNB's book value of P56. PNB stocks last traded at P84.30 so there's still significant upside for profit. An alternative would be to buy BPI shares, last traded at P92.80. Both parties target to push through with the merger before year ends, so the consolidation would mean higher reported profits for BPI. 

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Disclaimer: This article is solely the opinion of the blogger based on personal research. Any statement made is not a conclusion of absolute fact and is not intended to impose or persuade anyone's judgement.

PSE Round-Up: November 21, 2012

PSE Market Summary:

The Philippine Stocks Market is up for the fourth straight day, reaching another all time high at 5,534.18. Total trades were slightly up to 27,794 with 92 stocks advances, 75 declines and 41 remaining unchanged.

 BPI to Acquire PNB

The Bank of the Philippine Islands (PSE:BPI) is reportedly in advanced talks to acquire a majority stake in Lucio Tan's Philippine National Bank (PSE:PNB). Internal valuations initially priced PNB at P100 per share but a deal may be inked at P96 per share. PNB stocks last closed at P84.10 per share, giving a 14% premium to current prices. BPI and PNB both issued voluntary trading suspension for the day.

MBC Declares Cash Dividend

Manila Broadcasting Company (PSE:MBC) declared cash dividend as follow:

cash                          =                P.18 per share

ex-date                     =                Dec. 5, 2012

record date              =                Dec 10, 2012

payment date          =                 Dec. 21, 2012

PSE Round-Up: October 30, 2012

PSE Market Summary:

The Philippine Stocks Market rallied toward the end of day to close higher by 29.25 at 5,426.67 points. Total trades recorded were only 24,600 with 84 stocks advances, 78 declines and 43 stocks unchanged.

BPI Posts 37% Increase

Bank of the Philippine Islands (PSE:BPI) reported a net income of P13.2 billion for the first nine months, up 37% same period last year. The strong performance was mainly due to the increase in interest income, up by 17%. BPI stocks closed at P83.30, up by P.20 for the day.

FMIC Net Inome up 47%

First Metro Investment Corporation (PSE:FMIC) reported consolidated net income of P2.6 billion as of end of third quarter from P1.8 billion or 47% higher than last year. The increase was mainly due to higher interest income from fixed securities, trading gains, distribution fee income and brokerage fees.

TEL Receives Moody's Upgrade to Baa2

The Philippine Long Distance Telephone Company (PSE:TEL) received credit rating upgrade from Moody's from Baa3 to Baa2. The rating upgrade signifies a stable outlook and PLDT's dominant market position, strong financial metrics, and excellent liquidity". TEL shares were up by P22 to close at P2,656 today.

ALI Launches Redeveloped Glorietta

Ayala Land, Inc. (PSE:ALI) announced the launnch of the redeveloped Glorietta mall including the surrounding residential, hotel and office projects in Ayala Center. The redevelopment is estimated to cost around P3.1 billion which will open by December. ALI stocks was down P.15 to P23.50 to close the day.

LR Acquires 50% of Midas Hotel Operator

Leisure and Resorts World Corporation (PSE:LR) signed a preliminary agreement to acquire 50% of Hotel Enterprises of the Philippines, Inc. which owns and operates the Midas Hotel and Casino in Roxas Boulevard. LR stocks were up P.48 to P9.68 to close the day, after a one-hour voluntary trading halt.  

PRC Declares Cash Dividend

Philippine Racing Club declared dividend as follows:

cash                         =                      P.05 per share

ex-date                    =                      Nov. 23, 2012

record date             =                      Nov. 28,2012

Payment date         =                      Dec. 21, 2012

PSE Round-Up: October 12, 2012

PSE Market Summary:

The Philippine Stocks Market was up by 16.25 points to close at 5,369.72. The PSEi was down by 1.29% from 5,439.84 for the week. 89 stocks advanced and 74 closed lower, with 34 stocks remaining unchanged. Total trades reached 22,799.

TEL Acquires IP Converge

Philippine Long Distance Telephone Company (PSE:TEL) announced that its subsidiary ePLDT, Inc. has acquired 100% outstanding capital stocks of IP Converge Data Services, Inc. IP Converge operates as an internet data center and cater to managing data and cloud services.

AC to Increase Stake in BPI

Ayala Corporation (PSE:AC) will acquire an additional 10.4% ownership interest in the Bank of the Philippine Islands (PSE:BPI) from DBS Bank, Ltd. Both companies are owned by the Zobel de Ayala clan. 

NIKL Shipment Volume Up 16%

Nickel Asia (PSE:NIKL) sold an Aggregate of 9.56 wet metric tons of nickel ore as of Sept. 30, 2012, up by  16% from same period last year. The estimate value of the sale declined to P9.24 billion from P 9.83 billion due to lower nickel prices.

PSE Round-Up: August 10, 2012

ICTSI Signs Sub-concession in Nigeria

International Container Terminal Services, Inc. (PSE:ICT) and Lekki Port LFTZ Enterperise (LPLE) reached a sub-concession agreement for a container terminal in Nigeria. This grants ICTSI exclusive right to develop, operate and provide handling equipment and container terminal services for a period of 21 years.

Ayala Corp 1st Half Profits Up 23%

Ayala Corporation (PSE:AC) reported P6.1 Billion consolidated net income, 23% higher than same period last year. This was driven by higher equity earnings from Ayala Land, Bank of the Philippine Islands and Manila Water. Full report can be found here.

Sun Life announces Cash Dividend

Sun Life Financial Inc. (PSE:SLF) declared cash dividend as follows:

Cash = C$ .36 per common share

Ex-date  Aug. 23, 2012

Record Date Aug. 29, 2012

Payment Date Sept. 28, 2012

MPTC Clarifies Delisting Issue

Metro Pacific Tollways Corporation issued a clarification that they are still evaluating whether to comply with PSE minimum public ownership or to delist the company. The statement came after reports came up that the company is favoring on delisting. 

PCOR Income down in first half of 2012

Petron Corporation (PSE:PCOR) reported consolidated income of P432 Million for its Philippines and Malaysia operations. This was significantly down from P 6.04 Billion same period last year due to volatility in global oil markets. 

Manulife Delacres Cash Dividend

Manulife Financial Corporation declared cash dividend per below:

Cash = C$ .13 per common share

Ex-date  Aug. 16, 2012

Record Date Aug. 21, 2012

Payment Date Sept. 19, 2012

STOCK OF THE WEEK: BPI Continues Strong Growth

Starting this week, I will issue a weekly article to pick a particular company and discuss salient points on its performance. This will serve as a guide whether it is a good or bad investment to hold, and some other factors that should be considered that may have an impact in the company's future. I'll make it clear and concise as possible and try not to dwell much on the technical stuff. We start off this week with BPI.

Bank of the Philippine Islands (PSE:BPI) the third largest bank in terms of assets, continue to post good results as it reported P9.4 Billion in net income which is 52% higher than last period. Profits were driven by a strong loan performance and securities trading. Lending rose by 17.36% to P 480 Billion with equally good results in SME (19%), corporate (15%) and consumer (17%). 

BPI stock price chart: 1 year

 BPI stock price chart: All time

The company's stock price closed at 75.05, 2.065% higher than last week. While its stock valuation is near its all time high of 76.80, I continue to like BPI because of its continued strong growth performance. It has also stayed committed to sharing the profits with investors as it has not failed to issue dividends since 2006. 

Overall I am confident that BPI will continue to deliver good results throughout the year. While there is no guarantee that its strong company performance will translate to higher stock valuation, it is a safe investment to hold for the long term. For day traders, it is probably best to wait until the excitement from the good first half performance subsides and for the stock price to dip a bit before having it in your portfolio.  

Disclaimer: This article is solely the opinion of the blogger based on personal research. Any statement made is not a conclusion of absolute fact and is not intended to impose or persuade anyone's judgement.

BPI Posts 52% higher Income for 2Q2012

The Bank of the Philippine Islands (PSE:BPI) reported a 9.4 Billion Net Income, 52% Higher in the same period last year. The company's market cap was P265 Billion, largest among all domestic banks. Basel 2 Capital Adequacy Ratio is at 14.5%