France Media Agency
November 7, 2022 | 09:00
Ok, so now that we know that the US Federal Reserve has raised interest rates by 75 basis points and signaled that it may need to raise rates higher and for longer than previously thought, our eyes should return to the domestic market to see how this decision plays out for REITs (probably not great) and the exchange rate (probably not great, especially for companies carrying heavy US dollar-denominated debt).
Fortunately, the BSP removed much of the uncertainty by stating that it will also raise rates by 75 basis points at its November 17 meeting, but a lot can happen between now and then.
Coming to the calendar, I expect to hear something Same [DITO 2.80 0.71%] and PLDT [TEL 1614.00 0.37%] over their ongoing debt dispute, as TEL previously gave DITO a November 4 deadline to repay the 430 million pesos it allegedly owed TEL.
The delay was strategic, not legal, so it’s possible nothing actually happened. On Wednesdays, Liberty Flour Mills [LFM 18.00 unch] will float its real estate subsidiary on the stock market, LFM Properties Corp [LPC 0.107 pre-IPO]using the “as an intro” method, which should result in some ridiculous moments that will be fun (or heartbreaking) to watch.
Other than that, expect a flurry of earnings from companies looking to quietly release third-quarter earnings reports before the Nov. 14 deadline.
I talk about it a lot, but I really can’t underestimate how arbitrary and bizarre the PSE rules are when it comes to price action on the first day of trading for a PSE-listed company.” As an introduction”.
In case you didn’t catch one of my previous rants, the key here is that an introductory list has no ceiling or floor price on the first day of trading.
It can go up thousands of percent. It can drop 99%. He can do both of these things on the same day.
I can’t think of another circumstance where a stock’s price is left so exposed to basically do what the market wants, and the only reason I can think of for allowing it is simply because “it always has been done that way”, which is a terrible reason to keep doing something that is so violently out of alignment with the PES interest in maintaining an orderly market.