PSE Ticker

Tuesday, July 8, 2014

Market Talk (SECB, CHIB, NIKL)

Banks: SECB raises PHP10b in Tier 2 issuance. Security Bank Corp (SECB – BUY) raised PHP10b in Basel III-compliant Tier 2 notes. The coupon rate was set at 5.375% with a tenor of ten years and call option on the fifth year. Issue date is on 11 July. We expect capital adequacy ratio to rise to 18% in FY14. 

Banks: CHIB gets BSP approval for dividends. China Banking Corp (CHIB – HOLD) has received central bank (BSP) approval to issue PHP1/sh cash dividend or PHP1.6b, a 31% payout ratio based on PHP5.1b FY13 earnings and 8% stock dividend. At the current price, this translates to 1.8% dividend yield. Record and payment dates have yet to be set. 

Mining: DENR authorizes disposition of NIKL subsidiary’s limonite ore stockpile. Nickel Asia Corp (NIKL – HOLD) disclosed it received a letter from the Department of Environment and Natural Resources (DENR) last 1 July stating NIKL’s wholly-owned subsidiary Hinatuan Mining Corp (HMC) is authorized to dispose of nickel ore stockpiles in Manicani Island in Guiuan, Eastern Samar. The stockpiles, composed mainly of limonite ore, resulted from HMC’s operations in late 1990s which was subsequently suspended due to social issues and has remained on a care and maintenance status. Studies will be conducted by the company to establish volume and nickel grades of the stockpiles preparatory to determining shipment schedules.

-ATR KIM ENG

No comments:

Post a Comment