MON 14 JUN 2021

Top Story:

(AS OF JUN 11, 2020)

CNVRG: CNVRG included in two FTSE indices INDICES

Close Points % YTD%

PSEi 6,907.79 32.08 0.47 -3.25

Other News:
All Shares 4,174.65 20.29 0.49 -2.29
Financials 1,468.19 11.76 0.81 1.42
Holding Firms 6,959.00 41.14 0.59 -5.38
Industrial 9,302.40 51.10 0.55 -0.97
CLI: CLI to develop Php20Bil techno-business park Mining & Oil 9,457.55 -13.79 -0.15 -0.74
Property 3,423.36 4.59 0.13 -6.58
Economy: OCTA Group backs plan to ease metro lockdown Services 1,542.54 2.37 0.15 1.88

Economy: End-May 2021 GIR level settles at US$106.98Bil Dow Jones 34,479.60 13 0.04 12.65

Economy: Fitch sees PH budget deficit to remain wide S&P 500 4,247.44 8.26 0.19 13.08
Nasdaq 14,069.42 49.09 0.35 9.16

INDEX GAINERS

COVID-19 Update: Ticker Company Price %

FGEN First Gen Corporation 30.70 1.66
Total Cases Total Deaths Total Recoveries ALI Ayala Land Inc 38.30 1.59
MBT Metrobank 49.85 1.53
Philippines 1,315,639 (+7,302) 22,788 (+137) 1,232,986 (+7,701) MEG Megaworld Corporation 3.21 1.26
AC Ayala Corporation 818.00 1.18
USA 34,302,775 (+4,902) 615,057 (+98) 28,400,062 (+18,439)

Worldwide 176,696,650 (+289,325) 3,818,791 (+8,285) 160,729,280 (+358,776) INDEX LOSERS

Ticker Company Price %
RRHI Robinsons Retail Hldgs Inc 51.05 -2.95
LTG LT Group Inc 13.10 -1.50
Market Summary: SMPH SM Prime Hldgs Inc 37.00 -1.20
DMC DMCI Hldgs Inc 5.96 -1.00
SMC San Miguel Corporation 119.00 -0.83
The local stock market rose on Friday amidst the continued rollout of the country’s
vaccination program.
TOP 5 MOST ACTIVE STOCKS
Ticker Company Turnover

The PSEi gained 32.08 points or 0.46% to close at 6,907.79. The top movers were FGEN GLO Globe Telecom Inc 345,902,000
ALI Ayala Land Inc 271,314,100
(+1.66%), ALI (+1.59%), MBT (+1.53%), MEG (+1.26%), and AC (+1.18%). On the other ICT Intl Container Term 207,502,100
hand, the main drags were RRHI (-2.95%), LTG (-1.50%), SMPH (-1.20%), DMC (-1.00%), BDO BDO Unibank Inc 187,691,200
BPI Bank of the Phil Islands 183,065,900
and SMC (-0.83%).

Value turnover declined to Php5.8Bil from the Php7.4Bil seen in the previous session.
Meanwhile, net foreign selling grew to Php155.4Mil from the Php2.7Mil registered in the
previous day.

Disclaimer: All content provided in COL Reports are meant to be read in the COL Financial website. Accuracy and completeness of content cannot be guaranteed if reports are viewed outside of the
COL Financial website as these may be subject to tampering or unauthorized alterations.

MON 14 JUN 2021
Adrian Alexander Yu
Research Analyst
Kerwin Malcolm Chan
Research Analyst
Converge ICT Solutions Inc.
HOLD
Php21.70
Research Analysts
John Martin Luciano, CFA
Frances Rolfa Nicolas
Justin Richmond Cheng
Adrian Alexander Yu
Kerwin Malcolm Chan
COL Financial Group, Inc.
DAILY NOTES I PHILIPPINE EQUITY RESEARCH
Top Story:
CNVRG: CNVRG included in two FTSE indices
Global index provider Financial Times Stock Exchange Russell (FTSE Russell), a unit of the
London Stock Exchange, has included CNVRG in two FTSE indices: the FTSE Renaissance
IPO Index and the FTSE ASEAN All-Share Index. The FTSE Renaissance IPO Index is
designed to track the performance of the global IPO market and covers institutionally-
investable IPOs in developed and emerging markets with an initial market cap of at least
US$100Mil. Recall that the telco recently had its IPO in October last year. Meanwhile,
the FTSE ASEAN All-Share Index was established to promote ASEAN as a regional equity
market grouping. This index represents the performance of large, mid, and small cap
ASEAN companies listed on the exchanges. (Source: CNVRG)
Other News:
CLI: CLI to develop Php20Bil techno-business park
The Philippine Reclamation Authority (PRA) has approved the 100 Ha reclamation project
in Cebu, paving the way for CLI to develop a Php20Bil techno-business park in the area.
The PRA and Minglanilla local government unit signed the agreement for the Ming-Mori
Techno-Business Park. Meanwhile, CLI noted it has solid support from equity and bank
partners for the project. The company was also able to secure Php3Bil notes to fund the
first phase of construction, which is eyed to begin in the fourth quarter. The Ming-Mori
project is planned to be completed within three to five years. (Source: Businessworld)
Economy: OCTA Group backs plan to ease metro lockdown
OCTA Research Group backed a plan to ease the lockdown in Metro Manila as coronavirus
infections continue to fall. The presidential palace earlier said the capital region and
nearby provinces including Bulacan, Cavite, Laguna and Rizal could be placed under a
looser general community quarantine this week. The share of daily coronavirus cases in
Metro Manila have gone down to 27% of the national tally from 94% during the peak
on March 29 to April 4. The report also showed that the reproduction number in the
NCR for the previous week was at 0.72 while the average daily attack rate (ADAR) was
6.7, which means the risk level in the region is moderate. The positivity rate in NCR also
decreased to 8%, while the hospital care utilization rate also decreased to 36% with an
ICU occupancy rate of 49%. (Source: Businessworld, Inquirer)
2
 DAILY NOTES I PHILIPPINE EQUITY RESEARCH

MON 14 JUN 2021

Economy: End-May 2021 GIR level settles at US$106.98Bil

Based on preliminary data, the country’s end-May 2021 gross international reserves (GIR)
level settled at US$106.98Bil, slightly lower than the end-April level of US$107.71Bil.
The month-on-month decline reflected outflows arising from the foreign currency
withdrawals of the National Government to pay its foreign currency debt obligations.
Nonetheless, these outflows were partly offset by the inflows from the BSP’s foreign
exchange operations, income from investments abroad, and the increase in value of BSP’s
gold holdings. At the current level, the GIR represents a more than adequate external
liquidity buffer, which can cover around 12.2 months’ worth of imports of goods and
services and payments of primary income. This is also equivalent to 7.4x the country’s
short-term external debt based on original maturity. (Source: BSP)

Economy: Fitch sees PH budget deficit to remain wide

Fitch Solutions said the Philippine government’s budget deficit will likely remain wide
until 2022 as the country supports its economy amid the COVID-19 pandemic. Fitch also
said it sees limited risk from running a wide deficit in the short term given the economy’s
need for demand and investment. However, it noted that in the medium term there will
be a need for substantial fiscal tightening with the long term pressure on public finances.
(Source: BusinessWorld)

Changes in Shareholdings
Date of Acquired or Price per
Stock Volume Person (Designation)
Disclosure Disposed share
Georgina Carolina Y. Martinez
14-Jun NIKL 2,000 A 5.11 (Senior Vice President - Corporate Support
Services and Compliance)
Source: PSE

COL Financial Group, Inc. 3

 DAILY NOTES I PHILIPPINE EQUITY RESEARCH

MON 14 JUN 2021

I M P O R TA N T R AT ING DEFINITIONS
BUY
Stocks that have a BUY rating have attractive fundamentals and valuations based on our analysis. We expect the share price to outperform the market in the
next six to 12 months.

HOLD
Stocks that have a HOLD rating have either 1) attractive fundamentals but expensive valuations 2) attractive valuations but near-term earnings outlook might
be poor or vulnerable to numerous risks. Given the said factors, the share price of the stock may perform merely in line or underperform in the market in the
next six to twelve months.

SELL
We dislike both the valuations and fundamentals of stocks with a SELL rating. We expect the share price to underperform in the next six to12 months.

I M P O R TA N T DISC L AIM ER
Securities recommended, offered or sold by COL Financial Group, Inc. are subject to investment risks, including the possible loss of the principal amount invested.
Although information has been obtained from and is based upon sources we believe to be reliable, we do not guarantee its accuracy and said information may
be incomplete or condensed. All opinions and estimates constitute the judgment of COL’s Equity Research Department as of the date of the report and are
subject to change without prior notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of
a security. COL Financial and/or its employees not involved in the preparation of this report may have investments in securities of derivatives of the companies
mentioned in this report and may trade them in ways different from those discussed in this report.

CO L R E S EAR C H T EAM

APRIL LYNN TAN, CFA

VP & HEAD OF RESEARCH
april.tan@colfinancial.com

CHARLES WILLIAM ANG, CFA GEORGE CHING RICHARD LAÑEDA, CFA

DEPUTY HEAD OF RESEARCH SENIOR RESEARCH MANAGER SENIOR RESEARCH MANAGER
charles.ang@colfinancial.com george.ching@colfinancial.com richard.laneda@colfinancial.com

JOHN MARTIN LUCIANO, CFA FRANCES ROLFA NICOLAS JUSTIN RICHMOND CHENG, CFA
SENIOR RESEARCH ANALYST RESEARCH ANALYST RESEARCH ANALYST
john.luciano@colfinancial.com rolfa.nicolas@colfinancial.com justin.cheng@colfinancial.com

ADRIAN ALEXANDER YU KERWIN MALCOLM CHAN

RESEARCH ANALYST RESEARCH ANALYST
adrian.yu@colfinancial.com kerwin.chan@colfinancial.com

CO L F IN ANC IAL G R O UP, IN C.

2402-D EAST TOWER, PHILIPPINE STOCK EXCHANGE CENTRE,
EXCHANGE ROAD, ORTIGAS CENTER, PASIG CITY
PHILIPPINES 1605
TEL NO. +632 636-5411
FAX NO. +632 635-4632
WEBSITE: www.colfinancial.com

COL Financial Group, Inc. 5