• First Pacific’s P202-B one-day ‘loss’ in Philex

    Emeterio Sd. Perez

    Emeterio Sd. Perez

    Disclosure. In my previous piece in which I wrote about Wind Residences in Tagaytay City, I failed to disclose that my mother-in-law, Emeline Estanol, owns a unit in said condominium developed by SM Development Corp. Despite having fully paid SMDC for her unit way back in 2013, she has yet to receive the title to it.

    From the reactions of readers of The Manila Times, it seems the non-issuance of titles is not an SMDC monopoly. In their comments, they complained against certain condominium developers who reneged on their commitment to deliver to them the titles to their units.

    I can only sympathize with them. With no one to turn to for redress, they expressed their disgust and frustration thru Due Diligencer over the callousness of property companies that appear to be obsessed only with fattening their revenues but forget their responsibility to their clients.

    Perhaps the government, thru the Housing and Land Use Regulatory Board, should help buyers of condominium units and those who have purchased house-and-lot packages in subdivisions but have similarly been deprived of the titles to their acquisitions.

    Falling market
    With the market’s fall, it may be time to buy common shares in companies that pay regular dividends either in cash or in stock. In this way, investors could minimize the impact of their losses on their portfolios if they were unlucky to have been exposed to stocks that pulled down the market’s main barometer by 487.97 points or 6.7 percent on Monday.

    To illustrate: If you owned Metrobank shares, you must have observed how this stock performed on Monday. The bank’s share price opened and peaked at P82.50 but suddenly fell to P75, its session low. This translates to a loss P7.50 per share or a drop of 9.09 percent.

    If you did not panic, it could be because you expected Metrobank to recover. It did and closed the session at P80.80. You only lost P1.70 per share, or 2.06 percent. You really did not have a bad day if you did not go on panic selling.

    A paper loss of 2.06 percent within the session may not be bad at all. If you did not sell, the percentage meant only a paper loss that you need not worry about because you were not alone in such predicament on Monday.

    First Pacific’s loss

    If you were one of the unfortunate victims of the Philippine Stock Exchange index’s 6.7-percent decline on Monday, you are in good company. First Pacific Co. Ltd. of Indonesia also “lost” heavily that day. Philex Mining Corp., in which it owns 1.5 billion shares, or 31.2 percent, opened at P5.31, hit a high of P5.40, dropped to a low of P4.94 and closed at P4.97. This translates to a loss of P0.34 a share from the opening of trade to the end of the session.

    Within Monday’s trading alone, First Pacific lost P524.48 million in the market value of its shares.

    Here is another way to look at the First Pacific-owned Philex shares: At P4.97 per share, which was the closing price on Monday, the Hong Kong-based Indonesian conglomerate’s Philex shares had market value of P7.67 billion.

    Despite Philex’s plunge, Manuel V. Pangilinan, First Pacific’s nominee and chairman of the board of the mining company, did not sell. The report could have reflected his sale. Only 2.3 million Philex shares changed ownership on Monday.

    From the website of the Philippine Stock Exchange, you will notice that Philex’s share price dropped earlier on Aug. 19 to P4.64, the stock’s 52-week low, a drastic fall from its 52-week high of P11.66. Translated, this would mean First Pacific’s paper wealth plunged to P7.16 billion on Monday from P209.7 billion a year ago.

    The Indonesians must be that courageous in patiently holding on to Philex despite the burden of a falling market. From P209.7 billion a year ago to P7.67 billion, computed at the closing price of P4.64, meant that P202 billion vanished in one day from First Pacific’s paper wealth. Put another way, the Indonesian group lost 96.3 percent of its P209.7 billion paper wealth computed at P11.66 per share.

    Philex is not the only listed company in which First Pacific has substantial investments. It controls Metro Pacific Investments Corp. and has significant stakes in Philippine Long Distance Telephone Co. and Manila Electric Co. Its paper loss in them will be taken up in another piece.



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    1. I Remember... on

      “Despite having fully paid SMDC for her unit way back in 2013, she has yet to receive the title to it.”…

      I wrote days ago, here, that we are living that deceiving practice (not to say criminal offense… is it embezzlement in the Philippines?. In many countries it is the case…).

      Robinsons Land owes titles to many Units Owners of their projects… I was told my a unit owner in my condominium that he also had trouble with Megaworld…

      So the big ones take our money and continue to hold the title in their assets… NICE to keep their financials positive… not sure if criminal crooks can do better?

    2. Poch Villaluna on

      The difference between the 52 week high of 11.66 and 52 week low of 4.64 for PX shares is 7.02. If First Pacific owns 1.5B shares, then that translates to a drop in the market value of their holdings in PX of P10.53B over a one year period.

      It can’t be called a “P202B one day loss” since the difference is only P10.53 B and the two prices being compared to are one year apart.