Will Metro Pacific Investments Corp. (MPI) Benefit The Government Stimulus Package?
The Filipinos contaminated with COVID-19 (WUHAN-400) increased daily, were out of proportions and it seems that the contagion has worsened than contained.
The extended enhanced community quarantines, travel restrictions, and social-distancing measures drive a sharp fall in consumer and business spending until the end of Q2, producing a recession. Although the outbreak comes under control in most parts of the world by late in Q2, the self-reinforcing dynamics of a recession kick in and prolong the slump until the end of 2020.
Consumers stay home, businesses lose revenue and lay off workers, and unemployment levels rise sharply. Business investment contracts, and corporate bankruptcies soar, putting significant pressure on the banking and financial system.
If the Philippines congress will approve the proposed ₱200 Billion (US$3.93 Billion) stimulus package, will MPI benefit in this government aid? What industries will benefit the most?
This monetary policy is further eased in Q1 but has limited impact, given the prevailing low-interest rates. Modest fiscal responses prove insufficient to overcome economic damage in Q2 and Q3. Global GDP in 2020 falls drastically. It takes until Q4 for the Philippines and the world economies to see a genuine recovery.
The global economic impact is severe, even worse than the global financial crisis of 2008–09. GDP shrinks significantly in most major economies in 2020 and recovery begins only in Q4 of 2021.
Technically, although the daily graph starts to gain traction, the weekly and monthly graph remains in the bearish territory. In the said daily graph, today’s low price is the fourth time consecutive higher lows. If this pattern continues next week for another week of successive sessions, I’m confident that the low and closed price at 2.28 on the 23-Mar-2020 is a history. Otherwise, as I stated in my previous blog, Metro Pacific Investments Corp. (MPI) share price bottom? The possibility of revisiting the price to its lowest on 28-Oct-2008 at 1.82 isn’t afar from reality.
Again, how will MPI benefit this stimulus? MPI’s main source of income from the operation of the following businesses; Power 53%, Toll Operation 22%, Water 19%, Healthcare 4% and Rail (LRT/MRT) 2%.
Panigurado naman na ang bawat Pilipino ay nagbabayad ng kuryente, tubig, at karamihan ay dumadaan sa tollway, nagpapagamot lalo na sa salot na Wuhan-400 at pangkaraniwang Pinoy ay sumasakay ng LRT/MRT. Walang duda na si MPI ay makikinabang talaga. Ang tanong lang ay saan makakarating ang ayudang na ₱5,000.00 – 8,000.00. Sabi nga ng iba, kahit papaano ay may ayuda.
KONKLUSYON: Paano na ang mga nasa laylayan ng lipunan? Paano na kung wala nang kita si Juan Tamad? Ang Ayuda ba ng ating pamahalaan na ₱5,000.00 - ₱8,000.00 ay sasapat hanggang sa humupa ang salot na ito na ang buong mundo ang apektado. Sana napaghandaan ng husto nang ating mga opisyales sa gobyerno kung gaano kalawak ang WUHAN-400 krisis na ito. Sana din kung may naihanda man silang ayuda, ito ay pangmatagalan dahil kung hindi rayot sa bawat sulok ng Pilipinas at asahan na ang malalang krimen para malamanan lang ang sikmura ni Juan Tamad at nang kanyang mahal na pamilya.
DISCLAIMER: I'm not a Certified Financial Planner. Published herein is my personal opinion and should not be construed as a recommendation, an offer, or solicitation for the subscription, purchase or sale of this security.
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