Quick takes from around the market
1. Bangko Sentral ng Pilipinas (BSP) [link] could start to cut rates as soon as Q1, according to Pantheon Macroeconomics, and cut rates by at least 100 basis points by the end of 2024.
MB quick take: The US Federal Reserve’s surprising speculation about when and how often it could cut rates in 2024 meant that it was only a matter of time before some analyst would do the same for the Philippines, and here it is. The BSP is not in the same situation as the US so I don’t think the analysis is as simple as “if US, then PH but just a bit later”. I’ve seen that logic a bit on social media. That’s not what Pantheon is saying here. They’re saying that the BSP could maintain a “sufficiently tight” stance while making rate cuts due to the mathematical fall of inflation in 2024.
2. SP New Energy [SPNEC 1.14 suspended] [link] has been suspended for one week already following SPNEC’s purchase of 100% of the shares of Prime Infrastructure in Terra Solar Philippines. SPNEC needs to provide “comprehensive disclosure” on the transaction, including the purpose of the transaction and the impact that the transaction will have on the operations of the company.
MB quick take: This shouldn’t be a complicated disclosure. It’s not like one of those Dennis Uy disclosures where everyone is waiting to see who the mysterious totally legitimate third-party buyer is, and the PSE’s bar for justification and impact disclosure is notoriously low. Not sure why it’s taking the company so long to nail this layup, but if we know anything about SPNEC, it’s that they don’t super care about the minority shareholder’s ability to trade their shares.
3. Robinsons Retail Holdings [RRHI 39.35, up 0.3%; 18% avgVol] [link] said that the merger between Robinsons Bank and BPI [BPI 102.20, up 0.6%; 62% avgVol], with BPI as the surviving entity, was approved by the BSP on December 15. Through the shares that RRHI will receive in return for its interest in Robinsons Bank, RRHI will own 6.5% of BPI post-merger.
MB quick take: The parties now expect the merger to take effect on January 1, subject to the approval of the SEC.
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