Investors scoop up Monde Nissin shares on MSCI inclusion, better Q3 earnings

November 15, 2021 | 12:01 am

By Keren Concepcion G. Valmonte, Reporter

MONDE Nissin Corp. ended last week as the most actively traded stock after investor sentiment was spurred by improvements in its recent earnings report and its inclusion in the latest Morgan Stanley Capital International’s (MSCI) index rebalancing.

Data from the Philippine Stock Exchange (PSE) showed a total of 219.28 million Monde Nissin shares worth P3.72 billion were traded from Nov. 8 to 12, making the stock the most actively traded in the PSE last week.

Since its market debut on June 1, the stock’s price inched up 0.25%.

“[Monde Nissin] was included in the latest MSCI rebalancing. With a lot of speculation leading up to the announcement, it only further pushed trading activity on the stock,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message on Friday.

The MSCI announced last week that Monde Nissin was one of the two firms, with the other being Ayala-led AC Energy Corp., that will be added to the MSCI Philippine index by end-November. No companies previously included in the roster were deleted.

The MSCI prepares research and data to tack and construct indices for global investors.

Meanwhile, Monde Nissin’s improved quarterly earnings also boosted market sentiment last week, Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said.

“After the release of Monde’s earnings in the third quarter [last week], there were improvements in the performance, vis a vis, when compared to the second quarter of this year,” Mr. Pangan said in a text message on Friday.

“This enticed investors to trade on the stock reaching a high of P17.8 in price [on Friday] but profit taking ensued thereafter, closing at P16.96 as they lowered their guidance from mid-single-digit growth to low [to] mid-single digit, thus making it among the most actively traded,” he said.

Last week’s trading session saw Monde Nissin shares start the week declining by 0.12% from its Nov. 5 finish, then improving by 2.8% to close at P16.88 on Tuesday and Wednesday. Thursday saw its share prices decline by 1.66% before posting 2.17% gains on Friday.

In a disclosure to the exchange last week, Monde Nissin reported that it swung to profitability in the third quarter, generating an attributable net income of P2.86 billion from incurring a P2.15-billion net attributable loss in the second quarter. The company said its improved performance in the period was boosted by lower tax and interest rates.

Year on year, the company’s third-quarter attributable net income grew 8.7% to P2.86 billion, while sales for the period went up by 4.1% to P17.69 billion.

For the first nine months, Monde Nissin’s attributable net income declined by 5.3% as revenues declined to 3.6% to P11.1 billion. The company adjusted its revenue growth guidance as costs for raw materials such as power, labor, transportation, among others, increase.

“Near term, it will continue to be challenged on its margin pressures until it could turnaround its Quorn business possible in the medium term,” Diversified Securities’ Mr. Pangan said.

Meat alternatives brand, Quorn, declined by 3.8% from a year ago in the third quarter amid labor shortages in the United Kingdom. However, due to foreign exchange rates, Monde Nissin was able to book a 3.6% increase in revenues to P3.6 billion.

Mr. Pangan said he expects the company to continue reporting improved earnings results to achieve its lowered growth guidance. Meanwhile, Regina Capital’s Mr. Limlingan said the guidance might be possible.

“[Fourth-quarter Christmas] season and looser restrictions will definitely help so there is a possibility,” Mr. Limlingan said.

Mr. Pangan placed Monde Nissin stock’s immediate support at P16.60 and its resistance at P17.80.

“Like most stocks, the perception of how it will perform in [the fourth quarter] will be tied to economic mobility and inflation, among others,” Mr. Limlingan said.

Red tide warning for Carigara, Leyte lifted

November 15, 2021 | 12:01 am

THE Bureau of Fisheries and Aquatic Resources (BFAR) said it lifted the red tide warning for Carigara, Leyte after samples from the area tested negative for paralytic shellfish poison.

The BFAR said in its 30^th shellfish bulletin that new red tide warnings were also issued for Mariveles, Limay, Orion, Pilar, Balanga, Hermosa, Orani, Abucay, and Samal, Bataan.

Areas that are still positive for red tide are Dauis and Tagbilaran City, Bohol; Biliran Island; Daram Island, Maqueda, Villareal, Cambatutay, Irong-Irong, and San Pedro Bays, Western Samar; Cancabato Bay, Leyte; and Matarinao Bay, Eastern Samar.

Other areas with red tide are Dumanquillas Bay, Zamboanga del Sur; Baroy, Lanao del Norte; and Lianga Bay, Surigao del Sur.

All types of shellfish and Acetes sp. or alamang harvested from areas with red tide are deemed unfit for human consumption. Other marine species sourced from the same areas can still be eaten with proper handling.

Red tide occurs due to high concentrations of algae in the water. Human consumption of contaminated shellfish may cause paralytic shellfish poisoning, which affects the nervous system.

Typical symptoms of paralytic shellfish poisoning include headache, dizziness, and nausea. Severe cases may trigger muscular paralysis and respiratory problems. — Revin Mikhael D. Ochave

Analysts’ expectations on policy rates (Nov. 18)

November 15, 2021 | 12:00 am

THE BANGKO SENTRAL ng Pilipinas (BSP) is widely expected to keep rates steady on Thursday to continue supporting the Philippine economy’s recovery. Read the full story.

GMA Network, Inc. to hold annual stockholders’ meeting on Dec. 9

November 15, 2021 | 12:00 am

How PSEi member stocks performed — November 12, 2021

November 15, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Friday, November 12, 2021.

How does the Philippines compare with regional peers in terms of access to decent water, sanitation and hygiene facilities?

November 15, 2021 | 12:00 am

Peso may rise on remittances, BSP review

November 14, 2021 | 11:02 pm

THE PESO is seen to extend its climb versus the greenback this week on expectations of robust remittance inflows and a continued accommodative stance from the central bank.

The local unit finished trading at P49.85 per dollar on Friday, gaining 31.5 centavos from its P50.165 close on Thursday, based on data from the Bankers Association of the Philippines.

The currency also appreciated by 48 centavos compared with its close of P50.33 per dollar a week earlier.

The peso’s close on Friday was its strongest in nearly two months or since it ended at P49.79 per dollar on Sept. 15, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The increase in the country’s foreign exchange buffers caused bullish sentiment and supported the peso, he said.

The Bangko Sentral ng Pilipinas (BSP) on Friday reported that gross international reserves as of end-October increased month on month by 1.3% to $107.946 billion. It likewise gained by 4% from the $103.802 billion a year earlier.

At this level, the dollar buffers are enough to cover 7.8 times the country’s short-term external debt based on original maturity and 5.4 times based on residual maturity. It is also equivalent to 10.8 months’ worth of imports of goods and payments of services and primary income.

Another major lead last week was the stronger-than-expected economic growth in the previous quarter, a trader said.

The country’s gross domestic product rose by 7.1% year on year in the July to September period, turning around from the 11.6% decline a year earlier but slower than the 12% annual expansion in the second quarter due to the strict lockdown in August amid a surge in cases.

The trader said the market will monitor the upcoming remittance data this week. The BSP is scheduled to release September remittance data on Monday.

In August, cash remittances rose annually for the seventh straight month by 5.1% to $2.609 billion. This brought inflows for the first eight months to $20.38 billion, up by 5.7% from the same period of 2020.

Meanwhile, Mr. Ricafort said investors will also be monitoring the BSP’s monetary policy meeting on Thursday.

All 20 analysts polled by BusinessWorld last week expect the Monetary Board to keep interest rates unchanged at its policy review on Thursday. Economists said the BSP will keep its policy support as there is still not enough evidence that economic recovery is already self-sustaining.

BSP Governor Benjamin E. Diokno in October said there appears to be no need to adjust policy settings at least until the end of 2021 and stressed prematurely hiking interest rates could harm economic recovery. He said the elevated inflation seen currently is driven by low supply and is better addressed by non-monetary measures.

For this week, Mr. Ricafort gave a forecast range of P49.50 to 50.10 per dollar, while the trader expects the local unit to move within P49.65 to P50. — Luz Wendy T. Noble

Earnings, BSP meet to drive this week’s trading

November 14, 2021 | 11:00 pm

THE market will look to the release of remaining financial reports of listed firms as the earnings season ends on Monday, as well as the Bangko Sentral ng Pilipinas (BSP) policy meeting on Thursday for leads this week.

The 30-member Philippine Stock Exchange index (PSEi) rose 51.19 points or 0.69% to close at 7,382.84 on Friday, while the broader all shares index went up by 11.78 points or 0.29% to end at 3,964.68.

Week on week, the benchmark index gained 42.07 points from its 7,340.77 finish on Nov. 5.

“Higher-than-expected [third-quarter] GDP (gross domestic product) print carried last week’s momentum in local equities, only to fall short after hitting 7,400,” 2TradeAsia.com noted in an e-mailed market note on Friday.

Last week, the Philippine Statistics Authority reported the economy grew 7.1% in the third quarter, better than the 11.6% contraction from a year ago but slower than the revised 12% GDP print in the second quarter.

For this week, market sentiment is expected to be spurred by the third-quarter financial results of listed firms as well as the central bank’s policy review.

“Investors will be waiting for a few more earnings. With inflation and GDP already released, attention will be given to the next BSP meeting,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message on Saturday.

“Global inflation has been a growing concern, so any economic data that will provide clues to the prices of goods will influence local movements as well,” he said.

The BSP is set to hold its monetary policy meeting on Nov. 18, Thursday.

“The number of cases will still be monitored, which will give hints as to whether the alert level will be heightened or loosened,” Mr. Limlingan added.

The Health department logged 1,997 new coronavirus disease 2019 (COVID-19) cases on Saturday, which brought active cases to 29,332. The Philippines has reported nearly 2.82 million COVID-19 infections since the pandemic struck.

Meanwhile, Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said the deadline of same-party substitution for candidates in the upcoming national elections could also be a major catalyst for this week’s trading.

“Market sentiment could also be shaped by some leads related to the May 9, 2022 presidential elections,” Mr. Ricafort said in an e-mail on Friday.

The last day for the filing of substitution of candidates is Monday, Nov. 15.

“The political climate should heat up dramatically over the next few weeks — as the candidate pool gets finalized, so will speculations over regulatory and business risks of the next six years,” 2TradeAsia.com said.

RCBC’s Mr. Ricafort placed the PSEi’s immediate support at the 7,040-7,120 range, while resistance is pegged between 7,400 to 7,500.

Meanwhile, 2TradeAsia.com said immediate support is at 7,300, secondary at 7,200, while resistance is at 7,450. — Keren Concepcion G. Valmonte

Mbappé bags four as France thumps Kazakhstan 8-0 to qualify

November 14, 2021 | 8:20 pm

MBAPPE — FRANCE’S Kylian Mbappé scores his eighth goal. — REUTERS

PARIS — Holders France ran riot to reach the 2022 World Cup finals with a match to spare after four goals from Kylian Mbappé helped them to an 8-0 home demolition of Kazakhstan in their Group D qualifier on Saturday.

The result left France top of the group on 15 points from seven games, four ahead of second-placed Finland who they visit in their final match on Tuesday.

Karim Benzema added two goals while Adrien Rabiot and Antoine Griezmann netted one each to cap an impressive performance at the Parc des Princes and seal France’s berth in next year’s 32-nation tournament in Qatar.

Coach Didier Deschamps heaped praise on an effervescent performance and singled out France’s front line, who ripped the visitors apart with crisp one-touch passing.

“The aim was to qualify, but we did it in style too and you could see the enjoyment the players got from playing together and how they shared things, notably the forwards,” he told on French television.

“It’s good, everyone got their slice of the cake. It’s a result that rewards everything we did well in both halves. The risk at half time is to drop off a bit, but we continued, that’s also about respecting your opponent.”

Mbappé, who was instrumental in winning the 2018 tournament in Russia, added: “We wanted to give ourselves a chance to defend our title. Even for those who have played in it and won it, it’s an ultimate dream to play in a World Cup.”

Deschamps fielded a 3-4-3 formation with Kingsley Coman deployed as a right wing-back and the attack-minded strategy produced an avalanche of goals as France’s natural talent shone.

The floodgates opened after Mbappé fired France into a sixth-minute lead with a superb first-time shot from a Theo Hernandez assist, with the home side always two gears ahead of the Kazakhs.

Mbappé added the second in the 12^th minute with a simple finish into an empty net past a defender after Coman raced down the right, and he completed a first-half hat trick in the 32^nd when he headed home an inch-perfect cross from Coman.

The French never took their foot off the pedal after the break and soon increased their advantage with two quickfire goals from Benzema, who poked in the fourth from a Hernandez assist before Mbappé turned provider.

Rabiot scored his first international goal in the 75^th minute as he headed in Griezmann’s corner before the latter netted his 42^nd with a penalty, overtaking Michel Platini as his country’s third-highest top scorer.

The brilliant Mbappé put the icing on the cake three minutes before the end with a sublime finish into the bottom-right corner from a fine assist by substitute Moussa Diaby, with the home crowd already in full swing.

Benzema was delighted after combining with Mbappé to devastating effect up front.

“We’ve shown that we are compatible, that we can play together and have fun while scoring, creating goals and playing for the team,” he said. “I am so happy to have played as I did and above all to have won.” — Reuters

Washington Wizards beat Orlando Magic for 4^th straight win, 104-92

November 14, 2021 | 8:18 pm

SPENCER Dinwiddie’s double-double featured a game-high 23 points and 11 rebounds, and the undermanned Washington Wizards continued their best start in seven years with a 104-92 victory over the host Orlando Magic on Saturday night.

Washington played without leading scorer Bradley Beal (personal reasons) following the passing of his grandmother earlier in the week. Aaron Holiday moved into the starting lineup against Orlando and had 11 points on 5-for-9 shooting as the Wizards extended their winning streak to four games.

Washington’s Montrezl Harrell had another productive game off the bench with 20 points, seven assists and six rebounds. Injured forward Davis Bertans (ankle) also missed his fifth straight game for the Wizards, who totaled 21 of their 39 bench points in the second half.

The Southeast Division-leading Wizards, who kept their fourth straight opponent under 95 points, have the best winning percentage in the Eastern Conference (.750). And their nine wins in 12 games this season equals the start of Washington’s 2014-15 team.

Kyle Kuzma scored 12 consecutive points in the third quarter as Washington carried an 82-59 lead into the final period. He finished with 17 points, including three 3-pointers, and 10 rebounds, Kentavious Caldwell-Pope had 10 points and Dinwiddie chipped in six assists.

Washington shot 12-for-35 from beyond the arc and 42-for-84 from the field.

Orlando ended a five-game homestand with just one victory. Wendell Carter, Jr., who exited in the third quarter of Wednesday’s loss to Brooklyn due to a left-eye abrasion, donned protective goggles Saturday and finished with 17 points.

Cole Anthony (eight assists) made 11 of 12 free throws and had 22 points for the Magic, who shot 34 percent (31-for-92) from the field. Mo Bamba’s double-double comprised 14 points and 17 rebounds.

Orlando rookie Jalen Suggs, who scored eight points on 4-for-10 shooting, rolled his right ankle during the opening minute of the fourth quarter and did not return.

The Wizards had an early 20-0 run, building a 34-18 lead on Dinwiddie’s jumper with 9:30 left in the second quarter. The Magic, who went scoreless during an 8:23 span in the first half, responded with a 15-4 burst and closed to 38-33 behind R.J. Hampton’s six points and Anthony’s 3-point play. — Reuters

Jim Furyk takes one-shot lead into final round at Charles Schwab Cup

November 14, 2021 | 8:18 pm

JIM Furyk is 18 holes away from adding a Champions Tour points title to his impressive resume.

Furyk fired a 65 on Saturday in the third round of the Charles Schwab Cup Championship, holding on to a one-stroke lead heading into Sunday’s final round. Furyk sits at 16-under 197.

If Furyk holds on for the victory in Phoenix, he claims the season points title.

However, Bernhard Langer rebounded from back pain and a poor round Friday to card a 63, vaulting 22 spots back up the leaderboard to sit tied for ninth at 10 under. Though winning the tourney is likely out of the question, Langer put himself in position to claim a sixth Charles Schwab Cup if Furyk can’t bring home the victory.

Furyk turned in a clean card Saturday and has just three bogeys through 54 holes.

Langer put together four birdies and two eagles on a bogey-free day and was effusive about his round after shooting 72 on Friday.

Kirk Triplett, solo leader after 36 holes, shot 69 to sit alone in second at 15 under, one shot behind Furyk. Canada’s Stephen Ames (65) and New Zealand’s Steven Alker (68) are tied for third two shots back.

Phil Mickelson posted a 68 and is at 13 under, three shots back. Scott Parel (66) is four shots back alone in sixth. — Reuters

Badosa beats Sakkari to move into WTA Finals semis; Sabalenka survives Świątek test

November 14, 2021 | 8:17 pm

SPAIN’S Paula Badosa ground out a 7-6(4), 6-4 victory over Maria Sakkari at the Women’s Tennis Association (WTA) Finals in Guadalajara, Mexico on Saturday and advanced to the semi-finals with two wins from two matches in Group Chichen Itza after Aryna Sabalenka beat Iga Świątek.

Facing one of the WTA Tour’s great battlers, the seventh-seeded Badosa showed she can also play with grit during a two-hour, four-minute slugfest in the Mexican heat, stretching her winning streak to eight matches.

Badosa blasted 10 aces past her Greek opponent and kept her under pressure, converting three of 12 break points. Sakkari could not consistently find the mark, committing 49 unforced errors compared to just 22 from Badosa.

“I suffered but I knew I was going to suffer against a player like Maria, she is an amazing fighter,” said Badosa, who will celebrate her 24^th birthday on Monday.

“I think the key was to fight as well, I’m the same as her I am a competitor, I like to compete.

“I had to stay very aggressive but here it is tough because of the altitude. I stayed aggressive and focused and fighting a lot and I think that was the game plan.”

Sakkari underlined her warrior reputation, clawing her way back from 5-2 down in the first set to force it to a tie-break.

But the fourth seed quickly lost the momentum when Badosa roared in front 4-0 on her way to claiming the breaker 7-4.

Badosa kept up the pressure in the second, securing the early break to jump in front 2-1.

A reeling Sakkari had to dig deep to keep from falling into an even bigger hole, fighting off six break points before holding serve at 3-2.

Sakkari finally got the break she needed to level at 4-4 but Badosa immediately broke back, then served out the match, clinching the victory on her third match point with a backhand winner.

SABALENKA PUSHED BY Świątek
Badosa’s victory did not guarantee a semifinal spot but she advanced as the group winner after top seed Sabalenka fought back from a set down to beat Świątek (2-6, 6-2, 7-5) later on Saturday.

Świątek, the 2020 French Open champion, started well and broke twice in the opening set as the Belarusian struggled with her first serve.

But Sabalenka stormed back into the contest in the second set and was spurred on by a raucous crowd as she found her range on serve and won five straight games, saving three break points in the final game to take it to a decider.

The two were locked at 5-5 in the third when Sabalenka broke Świątek and then served out to eliminate the Polish 20-year-old.

“Guys, you’re just amazing, I have never felt that good on court, I’ve never felt this support from the crowd,” Sabalenka said in a post-match interview as the crowd cheered her on.

“I honestly think that this win is because of you. You gave me this energy, the motivation to keep fighting and I love you guys.”

The final group match between Sabalenka and Sakkari on Monday will decide the second semifinalist from the group. — Reuters