Daily Notes INDEX

DAILY MARKET STATS

VALUE PTS PCT YTD

Tuesday, June 30, 2020 PSEI 6,105.18 -86.66 -1.40% -21.88%
Reference: Claire T. Alviar ALL 3,586.86 -34.29 -0.94% -22.86%

Wilcon Depot, Inc. [pse:WLCON] FIN

IND
1,204.72

7,613.85
-34.24

-13.22
-2.76%

-0.17%
-35.36%

-20.98%

TRADE TP (TA): Php 16.00 HDG 6,313.22 -131.25 -2.04% -16.84%

PRO 3,045.59 -2.73 -0.09% -26.69%

SVC 1,382.93 -11.57 -0.83% -9.68%

STOCK SNIPPETS
M&O 5,147.91 -21.95 -0.42% -36.38%
Last Traded Price (PHP) 15.18
ASIAN MARKETS
P/E Ratio (x) 31.63 • Revenues to get boost by opening
(AS O1:55 PM)

of new store and launching of new INDEX VALUE PTS PCT YTD
P/B Ratio (x) 4.36
feature where customers can shop Nikkei 225 22,071.82 -440.26 -1.96% -6.70%
Support 15.00 online.
Hang Seng 24,253.55 -296.44 -1.21% -13.96%
Resistance 16.00 • Slowdown of earnings growth is Shanghai 2,956.27 -23.29 -0.78% -3.08%
MTD Performance (%) -0.13 expected following the temporarily
KOSPI 2,103.26 -31.39 -1.47% -4.30%
suspension of construction activities
YTD Performance (%) -15.67 HCM 833.31 -18.67 -2.19% -13.29%
during the ECQ.
SET 1,322.16 -8.18 -0.61% -16.31%

STI 2,576.39 -28.12 -1.08% -20.06%

OUR VIEW KLCI 1,477.42 -10.72 -0.72% -7.01%

JCI 4,863.14 -40.95 -0.83% -22.80%

INTERNALS
VOL 1,013,141,496 ADV 63

VAL 5,551,434,822.79 DEC 142

BLOCK 372,773,927.93 UNCH 43

Watch for possible rebound from psychological support of 6,000, and 50-day exponential moving
average (EMA) dynamic support. But be cautious at the same time as the rising number of Covid-
19 cases onshore and offshore brings fears to the investors, while waiting for the community quar-
antine guidelines of the government for July. Immediate resistance is at 6,344.75. RSI (14) is losing
momentum already.

TOP 5 GAINERS TOP 5 LOSERS

RRHI 3.23% BLOOM –7.65%

PGOLD 2.27% BDO –4.67%

FGEN 1.78% MEG –3.99%

Source: TradingView
SMPH 0.95% AEV –3.42%

MARKET WRAP JGS 0.81% RLC –3.41%

OTHER MARKET SNAPSHOTS

The PSEi dropped 86.66 points or 1.40%, to 6,105.18 as sentiment dragged by the Bangko Sen- Brent Crude 40.16 -1.88%
tral ng Piilipinas’ GDP growth projection of –5.7% to -6.7% for the second quarter, this was on the
WTI Crude 37.64 -2.21%
back of harsher negative impact than the prior expectation, while Covid-19 cases are still increas-
ing. Gold 1,786.40 0.34%

Silver 18.08 0.25%

Value turnover was a little lower at P5.55 billion, vs the year-to-date average of around P8.00 bil-
Copper 2.68 0.56%
lion, as investors await the government’s decision on community quarantine measures. Decliners
led advancers at 142 to 63, while 43 issues were unchanged. US$:Php 49.85 -0.16%

US 10 Yr Yield 0.64% -6.00%

All sectors ended in the red territory. Financials had the biggest lost of 2.76% amid controversy
over Wirecard’s missing $2.1 billion which dented investors’ sentiment.

Philstocks Research 2020 1 |Page

LOCAL NEWS Philstocks Research
JUSTINO B. CALAYCAY, JR
POGOs seen to exit PHL. According to the Bureau of Internal Revenue (BIR), two Philippine AVP-Head, Research & Engagement
offshore gaming operators (POGOs) have left the country, and others may follow. Some POGO +63 (2) 8588-1962
companies also plan to cancel their licenses, but according to the PAGCOR Assistant Vice-President
for Offshore Gaming and Licensing Department Jose S. Tria, he has not received yet their official JAPHET LOUIS O. TANTIANGCO
letters. The reason behind according to Mr. Tria, is the stringent tax rules from the BIR, particularly Sr. Research Analyst
on the franchise tax. +63 (2) 8588-1927

Property companies that lease office spaces to POGO firms are the first to badly hit if more POGOs PIPER CHAUCER E. TAN
will leave the country. Revenues of which may decline that could weigh further on the bottom line. Engagement Officer/Research Associate
One of the highly affected companies is Megaworld Corporation which accounts 17% of its revenues +63 (2) 8588-1928
from the POGO sector, or approximately 1.1 million of its gross leasable area (GLA), as of Dec 31,
CLAIRE T. ALVIAR
2019.
Research Associate
+63 (2) 8588-1925

Ground Floor, East Tower

GLOBAL NEWS PSE Center, Tektite Towers
Ortigas Center, Pasig City
Global Covid-19 deaths reached 500,000. While other countries are still suffering from the first PHILIPPINES
wave, some fears the resurgence of the virus that top half a million of death tolls. It was dangerous
for the elderly, but there are other adults and children that died due to the Covid-19. More than DISCLAIMER
4,700 people died every 24 hours from the virus based on an average from June 1-27.
The opinion, views and recommendations
Investors will continue to monitor the developments on Covid-19 pandemic, along with the rising contained in this material were prepared by
infections and death tolls. Fears of another total lockdown will linger amid the increasing cases as the Philstocks Research Team, individually
most countries reopened their economies. and separately, based on their specific
sector assignments, contextual framework,
personal judgments, biases and prejudices,
time horizons, methods and other factors.
The reader is enjoined to take this into
COMPANY NEWS account when perusing and considering the
contents of the report as a basis for their
stock investment or trading decisions.
TRADE Wilcon Depot, Inc. [pse:WLCON] Furthermore, projection made and presented
in this report may change or be updated in
On June 26, Wilcon opens 60th store at Calumpit, Bulacan as it continues expansion plans despite between the periods of release. Ergo, the
the pandemic. With its #FlyinghighTo100 store expansion campaign which aims to expand to 100 validity of the projections and/or estimates
locations nationwide by 2025, the opening of its new branch move it closer to its goal. To adapt to the mentioned are good as of the date indicated
and may be changed without immediate
new normal, WLCON introduced Browse, Call, and Collect/Deliver feature. Customers can pick items
notification.
through the Wilcon website then they will place order via call, text or Viber Wilcon, and finally they can
collect at the store or get delivered their purchases. Payments can be made via bank transfer, This report is primarily intended for
GCash,Paymaya, Instapay, PesoNet, Wechat and AliPay. information purposes only and should not be
considered as an exclusive basis for making
The new stores can boost the revenue of the company, along with the new feature that will attract investment decision. The recommendations
more customers to shop. However, we still expect a slowdown in earnings growth this year after lock- contained in this report is not tailored-fit any
particular investor type, situation, or
down measure temporarily suspends construction activities, and demand could still be weak despite
objective and must not be taken as such.
the resumption of the operations. Determining the suitability of an investment
remains within the province of the investor.
We see trading range from P15.00 to P16.00, after it breaks the trend support of uptrend channel. If it
Our estimates are based on information we
does not sustain to stay above 0.50 of Fibonacci retracement, next support is around P14.00. On- believe to be reliable. Nevertheless, nothing
balance-volume (OBV) moves inversely with the share price. in this report shall be construed as an offer
of a guarantee of a return of any kind and at
Target Price (TA): P16.00 any time.

Rating Definitions:
BUY - More than 15% upside base on the target price
in the next 9-12 months

HOLD - 15% or less upside or downside in the next

9-12 months

SELL - More than 15% downside base on the target

price in the next 9-12 months
TRADE - A potential 10% and above short-term upside
base on entry price and selling price.

Source: TradingView

Philstocks Research 2020 2 |Page