The PSE index move up by 2.81%  but albeit due to selective bargain hunting of blue chip stocks that had massive drop last Friday trading.

Bargain hunting during the pre-close period sent the index upward by as much as 1.4%. Todays trading showed good recovery for some of the Blue chip stocks. The index close at 6,446.31

Universal Robina corporation led the group with an upward movement of 6.55% reversing its big drop last Friday due to the news of selling its business in Australia and New Zealand Intersnack. On the other side of the disclosure as well, is its massive share buy back of 3 Billion pesos and 5% increase in dividends value.

1URC6.55%

2JGS5.36%

3BDO4.41%

4ALI3.98%

5SM3.79%

6ICT3.54%

7BPI3.11%

8SMPH2.70%

9TEL2.61%

10MBT2.56%

11SMC2.40%

12AC2.40%

13AEV2.39%

14EMP2.29%

15GLO2.15%

Mining led the drop of the index with -2.55% while holdings (2.97%) and property sector (2.89%) led the index movement

General sentiment of the market is still bearish a we are still about to enter the more strict enhanced community quarantine starting August 6-20, 2021

New vaccines arrival this Aug 3 from COVAX facility could help alleviate a bit the fearfulness on the Delta Variant type Covid virus. This batch of vaccines will come from the distribution centers managed by World Health Organization

On his speech Eduardo Ano said “Yes, bukas darating (they will arrive tomorrow) and the President will be one of those who will welcome the arrival of the vaccines,”

Most of these vaccines will be distributed in national capital region

Last week metro manila mayors’ initiation of implementing ECQ was agreed upon by the national government as the rising cases of Covid is expected to increase by the coming few weeks. Local transmission of the Delta Variant have been noted from the past few days as more data are coming out from the Genome Sequence Center.

In its disclosure last Friday, URC declared a 5% increase in dividends for 2021 as it had higher income. First half of the year earnings had a net income of Php8.5 Billion, which is higher 42% as compared last year. This was due to the one time sell off on its one piece land as well as the tax reliefs coming form the CREATE law.

This years net sales reached P68.5Billion a 2% increment from last years performance.

URC also announce that it is going to divest its interest to one of its partners for a line of snack products in Australia and New Zealand

Disclosure stated that “URC’s strong financial position is also expected to be further bolstered by cash proceeds from the sale of its remaining 60% stake in the Unisnack Oceania joint venture, when regulatory approvals are completed. At the end of the first half of 2021, URC’s balance sheet had a healthy cash balance of Php 17.3 billion, net debt of Php 26.3 billion and a low gearing ratio of 0.42. With continued strong cash flow foreseen, URC is raising 2021 dividends to Php 3.30 per share versus Php 3.15 per share in recent years.

In addition, returns to shareholders will be increased through a share buy-back plan initially targeted at Php 3 billion”

Intersnack

URC also stated that it has organized its share buy back for its own shares amounting to Three Billion (P3,000,000,000.00) worth of the Company’s common shares

It said on its disclosure “The objectives of the share buyback program are to enhance shareholder value and to manifest confidence in the Company’s value and prospects through the repurchase of the common shares of the Company and through the return of a portion of the Company’s capital to its shareholders”

Outstanding shares are as below;

Issued shares: 2,230,160,190
Outstanding shares: 2,204,161,868
Listed shares: 2,227,638,933
Treasury shares: 25,998,322

Price of URC drop by 4.38% after the run off period amid renewed fears on the upcoming Enhanced Community Quarantine in NCR region. It broke the support at 131 peso level and is now nearing its next support at 120 pesos