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Giltbox re-launches its online store

Here’s good news for makeup enthusiasts and online shoppers: Giltbox, the Philippines’ first and leading lifestyle subscription box service, is re-launching their online store!
But wait a minute, if you haven’t heard what Giltbox is, allow us to introduce it to you!
It’s a 360-degree lifestyle discovery platform — when one subscribes to their sampling service, they will receive a monthly delivery of the best beauty, grooming, and lifestyle products from prestige brands around the world. Yes, you read that right, around the world!

You probably never heard of “discovery subscription” — well, Giltbox is essentially like that. With Giltbox, you will have the chance to discover beauty and lifestyle products that are personalized just for you! By filling out your very own “beauty profile” (for women) and “grooming profile” (for men) — the Giltbox team will customize products according to your preference and data.  Isn’t that amazing? You know it is! 😉
In the Giltbox Shop, customers can buy find full-size versions of some of the products sampled as well as other editor-approved products from a vast list of brands. Shop from their list of 100+ brands and 1000+ products!
The Giltbox Shop is actually very user-friendly. You can easily find what you’re looking for in the “Shop”tab such as makeup, skin care, bath & body, hair, fragrance, and lifestyle.

You can also check out the contents of the previous boxes under the “Featured” tab. If you want to know the products that are currently on sale, don’t worry! Just click on the “Sale” button under the “Featured” tab.

Since Giltbox also has an online magazine designed to educate and inspire customers, from how-to videos, to beauty and style articles, to influencer collaborations — one can really appreciate and try out the products based from their pegs.
Giltbox’s innovative approach allows brands and consumers to connect in a unique, intimate, and fun way!
What are you waiting for? Go check out their store here and see what awesome products awaits you:https://www.giltbox.ph/shop.
 
Follow Giltbox online: @giltboxph, @giltboxman

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IRA ruling appeal looms as DBM says 2019 budget priorities set

THE GOVERNMENT will ask the Supreme Court to reconsider its ruling expanding local government units’ (LGUs) share of the national government’s revenue, saying that the 2019 budget priorities have been set.
Budget Secretary Benjamin E. Diokno said that the high court’s decision was “too late to insert” after President Rodrigo R. Duterte submitted to Congress on Monday the proposed budget approved by the Cabinet.
“The DBM (Department of Budget and Management) in coordination with the Office of the Solicitor General will file a motion for reconsideration within 15 days from the receipt of the decision,” he said.
“The President’s budget reflects the administration’s budget priorities. So we feel that undue application of the ruling to the incoming fiscal year 2019 budget might distort the funding earmarked to priority programs and projects identified by the national government,” Mr. Diokno said.
He said that the DBM has yet to formally receive a copy of the Supreme Court resolution, which was released to the media on Monday.
Mr. Diokno said the DBM has insufficient time to reconfigure the 2019 budget, given the short 30-day window for the budget submission beginning with the resumption of the Congressional session on July 23.
The court in its final resolution ordered the “automatic release without further action” of LGUs’ “just share” of all national government revenue, including taxes collected by the Bureau of Customs. It also ruled that the national government should implement the ruling prospectively.
Mr. Diokno said that complying with the ruling would mean an additional P160 billion for LGUs in the form of Internal Revenue Allotments (IRAs) on top of about P600 billion initially budgeted for 2019.
Mr. Diokno has said that had the ruling been interpreted to be retroactive from 1992, it would cost the government at least P1.2 trillion.
Republic Act No. 7160, or the Local Government Code of 1991, provides for IRAs amounting to 40% of “national internal revenue taxes based on the collection of the third fiscal year preceding the current fiscal year.”
Mr. Diokno said that the government will not implement the order until such time that the SC has responded to the motion for reconsideration.
“Nevertheless, the DBM will faithfully comply with the SC decision once it has become final and executory,” he said.
Mr. Diokno said that the government will devolve some functions to LGUs, especially conditional cash transfers (CCTs), farm-to-market roads, and local health care programs, as well as the corresponding budget for these functions, doing away with the need to spend more.
“There are many items there that were supposed to be performed by LGUs. CCT — that is supposed to be local but we are providing for it. So there’s a possibility that we might realign. We give that expenditure responsibility to them because the law says that’s theirs. Somewhere along the way, they got taken over by the national government,” he said.
“There’s a way of reallocating resources so LGUs will take over what they’re supposed to do. There are many things that they are not doing right now. And we’ll give it to them,” he added.
Sought for comment, the office of lead petitioner Hermilando I. Mandanas, a former Batangas governor and former representative of the province’s 2nd district and now Chairman of the Luzon Regional Development Committee, replied in a mobile phone message: “Gov. Mandanas would like to thank the SC for their wise decision.”
When asked to comment on the implications of the devolution for federalism, Mr. Diokno said: ”Let’s not complicate this with federalism. If you bring up federalism, then we will end up discussing this forever. So let’s set aside federalism. That’s a long way to go.” He added that he is still studying the draft constitution.
Finance Secretary Carlos G. Dominguez III and Socioeconomic Planning Secretary Ernesto M. Pernia have raised possible concerns about the ability of LGUs to deliver projects. — Elijah Joseph C. Tubayan

UBS sees PHL less affected by trade war, cuts 2019 growth view

THE PHILIPPINES is less likely to be affected by the trade war between the US and China compared with other more open economies in the region, but the dispute could still dampen growth prospects next year, UBS AG said.
In a media conference call, UBS economist Alice Fulwood said the Philippine economy is relatively resilient to the looming tariff war between the two major economies, but the disruption caused to trade could still weigh down growth for 2019.
UBS maintained its growth forecast for the Philippines at 6.8% this year, but slashed its 2019 estimate to 6.4% from 6.6% previously. This is significantly lower than the government’s 7-8% growth target.
“We now believe an escalation of US-China trade tensions with a meaningful fallout on growth is more likely than not,” UBS also said in a research note published last week.
“The more open economies of Singapore, Thailand and Malaysia see a more significant impact than the more closed economies of Philippines and Indonesia. Vietnam looks best placed to benefit from export market share gains.”
US President Donald J. Trump imposed tariffs on billions of dollars worth of goods brought in from China, particularly aluminum and steel items. China has retaliated with a 25% tariff on US soybeans.
Ms. Fulwood said the reduced forecast for the Philippines is the “direct result” of the potential impact of the trade war, and is less severe compared to downgrades for other Southeast Asian economies.
Singapore, which has a bigger exposure to the US and China, is expected to grow by 2.2% next year, down from the original 3.2% forecast. Malaysia’s growth is also projected at 4.2% from 5.1% previously.
UBS said manufacturers of cars, electronics and electric machinery may be affected by the US-China trade war, although the Philippines is “less exposed” to the global supply chain for these sectors.
Philippine inflation is estimated to average 4.7% this year, easing to 3.8% by 2019. These compare with a 2-4% target band of the Bangko Sentral ng Pilipinas (BSP).
UBS expects two more rate hikes from the BSP during its August and September policy meetings. If the forecast pans out, this will bring rates to 3.5-4.5% by year’s end following back-to-back increases in May and June.
“Higher interest rates can put downward pressure on the economy, but it will be resilient. We do not expect growth to slow too much,” Ms. Fulwood said.
The impact of the trade tensions may also be felt through the exchange rate. Ms. Fulwood said they expect tariffs to be met with a “risk-off” attitude against Asian currencies and lead to a stronger dollar.
UBS expects the peso to breach the P54 to the dollar level this year, and possibly weakening further to P56 next year. — Melissa Luz T. Lopez

Farm damage from storms tops P1 billion

CROP damage caused by two storms and a tropical depression has topped P1 billion, according to the Department of Agriculture.
According to data from the DA’s disaster operations center, as of Wednesday, damage to agriculture caused by Tropical Storm Henry, Severe Tropical Storm Inday and Tropical Depression Josie was estimated at P 1.12 billion.
Rice, corn, high-value crops, fisheries and livestock were among those affected, while the main areas affected by the storms were all of Region III as well as the province of Oriental Mindoro and parts of Northern Luzon, Negros Island and Panay, the DA said in a social media post.
Damage to rice made up 83% or P925.99 million of the total, amounting to 12,111 metric tons (MT). Meanwhile, palay in washed-out seedbeds was estimated at 5,137 bags.
The damaged area planted to rice was 30,274 hectares in the provinces of Pangasinan, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, Batangas, Rizal, Laguna, Occidental Mindoro, Negros Occidental and Aklan.
Some 37,927 rice farmers were affected, with those from Central Luzon recording losses worth P569.83 million, with Tarlac accounting for P362.46 million.
Damage to corn was estimated at 93 MT, valued at P1.47 million. The damaged cornfields were largely found in Pangasinan, Nueva Ecija and Pampanga.
Damage to high-value crops was estimated at P18.66 million, or 594 MT in vegetables across 116 hectares.
Livestock damage was P700,000,incurred in Pangasinan and consisting of 13 head of cattle and one carabao.
Fisheries damage was mainly in the form of fish and fishing equipment, accounting for P172.46 million of the total and spanning various regions of Luzon.
“The Regional Field Offices of the Department are now conducting field validation to determine the extent of the damage and losses brought by the three weather disturbances, as well as the needs of the affected farmers and fisherfolk,” the operations center said. — Janina C. Lim

World Bank bats for cash transfer expansion in 2019

THE WORLD Bank is recommending an expansion in the coverage of the government’s cash transfers, known as the Pantawid Pamilyang Pilipino Program, due to their effectivity in reducing poverty.
“The Bank considers that there are enough arguments to expand coverage of Pantawid to cover additional families in 2019, taking into account the large number of poor families with children that have not yet been covered (about 2 million),” the bank said in an implementation and status report dated July 17.
The World Bank is helping fund the payouts to CCT beneficiaries from 2016 to 2019 under the Philippines Social Welfare Development and Reform Project.
The bank provided $450 million worth of financing for the government, which covers 7% of the CCT payout.
“Considering the ambitious national goal of reducing poverty from 21% to 14% in 2022, Pantawid has already demonstrated important poverty reduction impacts,” it noted.
“The Bank continues to note with concern the diminishing number of children covered by the program over the years, especially those who are below the age of five and at high risk of malnutrition. This highlights the unrealized potential for Pantawid to play a leading role in addressing the Philippines undernutrition crisis,” the bank said.
The World Bank noted that a third of Filipino children under five are stunted, indicating undernutrition.
“Following the example of Peru, which cut its stunting rate in half in less than a decade, the Bank team has recommended that DSWD establish an interagency committee to enhance the impact of Pantawid on nutrition,” it said, referring to the Department of Social Welfare and Development.
However, it also flagged some delayed payouts due to logistical issues with the Land Bank of the Philippines, which it noted as a “critical aspect that has not been solved yet.”
“Many beneficiaries and DSWD local personnel express frustration over payouts being canceled at the last minute, ATMs without sufficient funds to disburse money to beneficiaries, and perennial delays in issuing and replacing cash cards,” the bank said.
“The Bank has recommended exploring additional/alternative payment providers to achieve more efficiency in the download of grants to the beneficiaries and, in the long-term, achieve 100% use of cash cards or point of sale terminals,” he added.
“DSWD should prioritize completing Listahanan 2015 with the missing Pantawid families that were not assessed,” it added, referring to the database of targeted beneficiary households. “For the Listahanan to stay relevant, the Bank has recommended DSWD to consider the need for a more dynamic registry, which is reflected by the requirements of its biggest users.”
It also noted that the national ID system will help plug leakages to the conditional cash transfer program.
It said the progress made towards reaching the project’s objectives as well as the implementation progress are “moderately satisfactory.” — Elijah Joseph C. Tubayan

NGCP seeks approval for contingency reserve power deals

PRIVATELY OWNED National Grid Corp. of the Philippines (NGCP) has asked the Energy Regulatory Commission (ERC) for provisional authority to implement its ancillary services procurement agreement (ASPA) with a power plant in Luzon and another in the Visayas.
In a joint application filed with the ERC, the power grid operator and Therma Luzon, Inc. (TLI) have sought approval for the 60 megawatts (MW) that NGCP will buy from the power plant’s units 1 and 2 in Pagbilao, Quezon province on a firm basis, and another 60 MW on a non-firm, or as needed, basis.
Separately, NGCP and Palm Concepcion Power Corp. (PCPC) are asking approval for an ASPA for 15 MW on a firm basis, and 15 MW on a non-firm basis. Both applications sought provisional authority ahead of the ERC’s final approval.
NGCP forges agreements to procure “ancillary services” — in this case power supply — to ensure reliability in the operation of the transmission system and consequently, in the reliability of the electricity supply in the Luzon, Visayas and Mindanao grids.
Ancillary services are necessary to support the transmission of capacity and energy from energy resources to electricity load centers, while maintaining the reliable operation of the transmission system.
NGCP said the ancillary services to be sourced from TLI and PCPC are to be used as contingency reserve, or power that will be allocated to immediately answer any reduction in supply when the largest power generating unit online fails to deliver.
“In view of the need for NGCP to procure ancillary services from PCPC, the Applicants on 23 December 2017, executed the ASPA. NGCP agreed to procure and PCPC agreed to supply Ancillary Services in the form of CR for a period of two (2) years under firm and non-firm arrangements,” the joint NGCP-PCPC application stated.
The agreement with TLI, meanwhile, is an extension of a previous ASPA forged in March 2013 with a term of five years. The past deal was granted provisional authority by the ERC. The commission oversees power supply deals to regulate future cost recovery.
“In view of TLI’s proposal to continue providing ancillary services, NGCP agreed to procure and TLI agreed to supply Ancillary Services in the form of Contingency Reserve… under firm and non-firm arrangements,” the companies said.
During the period of negotiation, NGCP conducted several tests on the TLI power plant, and certified that it had met and complied with the standard ancillary services technical requirements as capable of providing contingency reserve. The new procurement agreement between the two was forged on May 29, 2018.
TLI is the independent power producer administrator of the 700-MW coal-fired power generation plant in Pagbilao. PCPC is the owner and operator of the 135-MW coal-fired power plant in Barangay Nipa, Concepcion, Iloilo province. The ERC is set to hear both applications next month.
Separately, NGCP said on Wednesday that it had energized the newly constructed Aurora-Polanco 138-kiloVolt (kV) transmission line 1 on June 20, and line 2 on July 22, 2018 as part of its efforts to continuously upgrade its facilities and to address the recent voltage fluctuations in Northern Mindanao.
The company said it has started several projects to mitigate congestion and voltage issues in the area and ensure the integrity of the entire grid arising from Mindanao’s rapid load growth in recent years.
The Aurora-Polanco 138-kV project is one of NGCP’s initiatives to reinforce power transmission services in the Zamboanga del Norte area.
Dipolog City, Dapitan City, and the Municipality of Polanco are three important load centers in the Zamboanga del Norte area, which have been growing in power consumption year after year, it said. — Victor V. Saulon

Meralco seeks permission to recover new Biñan franchise tax

MANILA ELECTRIC CO. (Meralco) has asked the Energy Regulatory Commission (ERC) to factor in the new local franchise tax rate imposed by Biñan City in Laguna province, and reflected in its customers’ electricity bills in the area.
Meralco said the city government imposed a higher tax on businesses enjoying a franchise as computed based on their gross annual receipts, which include both cash sales and sales on account realized during the preceding calendar year within Biñan.
The distribution utility is also asking that it be able to recover the differential local franchise tax for 2017 from customers in the said city.
The company said on Nov. 22, 2016 that the city enacted an ordinance that imposed a local franchise tax (LFT) on businesses enjoying a franchise at a rate of 75% of 1% of the gross annual receipts. The previous rate was 50% of 1%, which took effect on Aug. 12, 2010.
“Subsequently, the Office of the City Treasurer of Biñan, Province of Laguna issued a Notice of Assessment to the Applicant in the amount of P32,560,202.99. As [Meralco] was already able to pay the amount of P16,280,101.49 for LFT for the 1st to 3rd Quarter of 2017 based on the old rate at the time of the assessment, [it] only needs to settle/pay the balance… of (P16,280,101.50),” the company said.
It said the balance is broken down as P5,426,700.50 for the LFT due for the fourth quarter of 2017 using the old rate; and the amount of P10,853,401 representing the differential LFT or the difference between the old and the new rate, on or before Oct. 20, 2017 to avoid the imposition of surcharges and penalties.
Meralco is seeking authority to recover the differential LFT at a rate of P0.0117 per kilowatt-hour (kWh) and carrying cost in the amount of P352,781 at a rate of P0.0004/kWh or the total amount of P11,206,182 at a rate of P0.0121/kWh from the customers of Biñan for a period of 12 months.
Meralco has a legislative franchise to operate and maintain a distribution system in the cities and municipalities of Metro Manila, Bulacan, Cavite and Rizal, and certain cities, municipalities and barangays in Batangas, Quezon, Pampanga and Laguna.
As such it is authorized to charge all its customers for their electric consumption at the rates approved by the ERC.
Meralco is not authorized to unilaterally change the franchise fee rate component on customer’s bills. If it needs to change the rate due to any changes in franchise fee obligations, it is required to petition the ERC for such authority and include in its filing all documentation necessary to verify the changes.
Under ERC regulations, a distribution utility is to await the commission’s clearance before the inclusion and imposition of local government taxes in its customer’s retail rates. — Victor V. Saulon

ISOC proposes cell tower building program to DICT

ISOC INFRASTRUCTURES, Inc., a unit of ISOC Holdings, Inc., has submitted an unsolicited proposal to the Department of Information and Communications Technology (DICT) to build 25,000 common cellular towers over seven years.
In a briefing at the DICT office on Wednesday, Acting Secretary Eliseo M. Rio, Jr. said it is the first time the agency has received an unsolicited proposal to accredit a common tower provider, and needs to consult its legal department for a thorough review.
“Remember the government will not spend anything here. It will just give permission for the proponent to put up common towers. It will be up to them to convince telcos (to use them),” he said.
Mr. Rio also noted the DICT may accommodate up to two common tower companies, which would also have to submit a proposal and go through the process to which it will subject ISOC Infra.
“Basically, this will be considered initially as a public-private partnership (PPP). The PPP rules set up by our laws will be applicable. This will be subject to a public hearing, and then a Swiss challenge will then be conducted,” the DICT Legal Office said.
Under a Swiss challenge, other companies may submit counter-proposals but ISOC Infra, as original proponent, has the option to match any counter-offers.
Mr. Rio also said unlike other PPP, ISOC Infra will be allowed to operate, maintain and lease its towers should it be accredited by the DICT.
ISOC Infra is chaired by Megawide cofounder Michael C. Cosiquien. During the briefing, he said the company is investing P100 billion over seven years at an estimated P3.5 million to P6 million per tower.
Mr. Rio said the department encourages the sharing of towers, as opposed to the practice of Globe Telecom, Inc. and PLDT, Inc. of building towers for their exclusive use.
Mr. Rio said sharing of towers will be more economical, and hopes a common tower policy will make telecommunications services more affordable.
“This is what we are trying to do — bring down the costs. Because right now, the cost of Globe and Smart is (such) because they are not sharing towers. They are passing on to the consumers the cost of putting up a tower,” he said.
But he added that the two companies are still allowed to build their own tower should they want to, as their franchises from the National Telecommunications Commission (NTC) allow for it. — Denise A. Valdez

Getting the most out of TRAIN

Over the past few months, two “trains” have been in the news. One of them is a literal train, Metro Manila’s poorly-maintained commuter rail line. The other is TRAIN, or the Tax Reform for Acceleration and Inclusion Law, which promises to raise take-home pay of most Filipinos.
The tax law appears to enjoy the better prospects as it aims to simplify the tax system. The reduction in income tax for individuals and simplified compliance procedures, as implemented by Revenue Regulations (RR) No. 8-2018 and 11-2018, as amended by RRs 14-2018 and 15-2018, were among its notable provisions.
MAXIMIZING TRAIN’S INCENTIVES
Apart from the adjusted graduated income tax rates for individuals, the following features must also be considered for tax planning purposes:

1. The annual exemption for 13th month pay, bonuses and other benefits has been increased from P82,000 to P90,000.

2. There are increased thresholds for de minimis benefits, such as monthly medical cash allowance provided to employees’ dependents from P125 to P250, monthly rice subsidy from P1,500 to P2,000, and uniform allowance from P5,000 to P6,000 per year. These benefits are not subject to both income tax and fringe benefits tax (FBT).

3. Fringe benefits given to non-rank and file employees are subject to 35% FBT, up from the previous rate of 32%. Hence, the grossed-up monetary value is now determined by dividing the actual monetary value by 65%, resulting in an effective FBT rate of 54%. With this effect, companies may need to review their existing fringe benefits to plan what type of fringe benefit they plan to provide so they may take into consideration the non-taxable provisions of the FBT rules for cost planning purposes.

4. Purely self-employed individuals and professionals earning P3 million and below may opt to be taxed under the graduated rates of 0% to 35% or a flat rate of 8% based on gross sales or gross receipts and other non-operating income in excess of P250,000 in lieu of the graduated tax rates and percentage tax.

With this option, taxpayers can plan the tax rate they may apply to their business income based on their prior year’s business performance. Note though, that the tax rate should be elected on the first or initial quarter tax return to be filed for the year. Such election is irrevocable for the whole taxable year.
LEVERAGING THE NEW TAX COMPLIANCE PROCEDURES
The law also introduced certain compliance requirements to simplify the tax filing procedures with the Bureau of Internal Revenue (BIR).
1. Annual income tax returns shall be limited to a maximum of four pages for both paper and electronic form, effective tax year 2018.
2. Certain deadlines were also revised, such as the filing of the first quarter BIR Form 1701Q (Quarterly Income Tax Return for Individuals, Estates and Trusts) which was updated to every 15th day of May, including the deadline for the second installment filing which was moved to the 15th day of October.
Quarterly deadline for the filing and payment of creditable and final withholding taxes (WHT) were also moved to the last day of the month, following the close of the taxable quarter.
3. Required submission to income payors of a sworn declaration of gross sales/receipts by payees whose gross sales/receipts in a taxable year do not exceed P3 million (for individual payees to avail of the 5% WHT) or P720,000 (for non-individual payees to avail of the 10% WHT), as well as those whose income is sourced from a lone income payor and the total income payment is P250,000 or less. The purpose of this is to guide the payor that the lower WHT rate should be used.
Consequently, the income payor shall be required to execute a sworn declaration stating the number of payees who have submitted the sworn declarations as mentioned above, with the accompanying copies of their Certificate of Registration (CoR), including the sworn declaration submitted by the payees.
4. Inclusion of identified top 5,000 individuals and taxpayers identified as Medium Taxpayers, and those under the Taxpayer Account Management Program (TAMP) within the coverage of “top withholding agents,” who are required to withhold 1% and 2% WHT (other than those covered by other withholding tax rates) on purchases of goods and services, respectively.
AREAS OF CLARIFICATION
Like a physical train, some parts of the TRAIN law implementation need to be oiled to work efficiently. There remain certain items which need to be addressed for effective implementation, one of which is a certain section on Revenue Memorandum Circular (RMC) No. 50-2018. Under the circular, premiums paid by the employer under a group insurance policy for all its employees, regardless of position and rank, shall form part of the “other benefits,” subject to the P90,000 exemption ceiling. However, premiums (not part of the group insurance) paid for selected employees holding managerial or supervisory positions are considered fringe benefits subject to fringe benefits tax.
This interpretation seems to run contrary to Section 2.33 (B)(10)(b) of RR No. 3-98 (or the FBT regulations), which treats premiums for managerial/supervisory employees as non-taxable fringe benefits without qualifications. Moreover, if the group insurance premium exceeds the P90,000 exemption threshold, it is unclear who will shoulder the tax on the excess amount — the employer who paid the premium or the employee who enjoyed the benefit?
While regulations and circulars are issued to effectively enforce or amplify the law, how should RR No. 3-98 and RMC No. 50-2018 be read to reconcile both provisions on the taxation of group insurance?
While there is merit in the additional take-home pay from the restructured income tax rates and the simplified, yet comprehensive, tax compliance procedures under the first phase of the tax reform program, there are, however, a few policy lapses, apart from the impact on consumer purchasing power of the consumers (which by the way is another topic). So unless it intends to outperform the railway transport system, the TRAIN Law may need to be revisited and “re-oiled” to live up to its objectives.
The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.
 
John Klein R. Santos is a Consultant at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.
+63 (2) 845-2728
john.klein.santos@ph.pwc.com

Peso climbs vs dollar

peso dollar bills
THE PESO rose as players looked ahead to the central bank’s meeting.

THE PESO strengthened to hit three-week high against the dollar on Wednesday as the market continued to wait for the central bank’s policy decision amid hints on a fresh hike.
The peso ended at P53.37 versus the greenback, five centavos stronger than the P53.42-per-dollar finish on Tuesday.
This was the peso’s best showing in three weeks or since it closed at P53.36 against the dollar on July 4.
Dollars traded declined to $557.1 million from the $668.1 million that switched hands on Tuesday.
A foreign exchange trader said the peso gained versus the US currency on Wednesday amid two-way flows from investors.
“We are still seeing two-way flows. There’s still demand to buy dollars from oil companies and importers, the trader said in a phone interview, adding that there are also sellers that came out. “I think that’s why we’re seeing stronger against the dollar recently.”
The trader also noted that the market is still waiting for the next inflation figure as well as the monetary policy decision of the Bangko Sentral ng Pilipinas (BSP) at their August meeting.
“The expectation for the BSP is to hike interest rates. The question now is will they hike 25 basis points or 50 basis points.”
On Friday, the monetary authority said it is considering another hike in benchmark rates to temper inflation expectations.
The monetary authority has already raised rates twice this year. Rates now stand at a 3-4% range.
Meanwhile, another trader said the peso appreciated “ahead of possible hawkish cues from the European Central Bank policy meeting which would be less favorable to the dollar.”
For Thursday, the first trader expects the peso to move between P53.35 and P53.55, while the other sees the local unit to trade within a P53.25-P53.45 range. — K.A.N. Vidal

Foreign buying propels PSEi to highest in a month

By Arra B. Francia, Reporter
THE MAIN INDEX climbed past 7,500 on Wednesday to finish at a peak in 28 trading sessions as foreign buying returned.
The Philippine Stock Exchange index (PSEi) rallied to as high as 7,620.39 in midday trading, before paring down gains to 66.98 points or 0.89% to finish at 7,514, the benchmark’s highest point since June 14’s 7,529.54 finish. The all-shares index went up 30.30 points or 0.67% to 4,535.53.
“A net foreign buying figure of P246.3M led the index to skyrocket by as much as 173 points to break above 7,600 for its intraday high. Profit taking at the close however, erased more than half of the PSEi’s gains as it dropped 100 points to end at 7,514,” Papa Securities Corp. Trader Gabriel Jose F. Perez said in an e-mail.
Timson Securities, Inc. Trader and Marketing Head Mark Levinson Koa also noted that the increase was due to inflows from foreign investors, saying the net foreign buying amount of more than P200 million was “pretty much in existent for the past few months.”
Wednesday ended with P246.30-million net buying that compared to Tuesday’s P47.96-million net sales.
In addition, Mr. Koa attributed the PSEi’s positive performance to the anticipation of good second-quarter earnings.
“Almost abruptly, investors’ sentiment reversed to positive today…,” RCBC Securities, Inc said in a note prepared by research analyst John Paolo D. Ayson.
“The Philippine market joined other Asian markets in cheering the stimulus measures that China recently announced to support its flagging economy.”
Japan’s Nikkei 225 and TOPIX Index were up 0.46% and 0.38%, respectively, while Hong Kong’s Hang Seng Index went up 0.90%.
On the other hand, the Shanghai SE Composite index and the blue-chip Shanghai-Shenzhen CSI 300 shed 0.04% and 0.11%, respectively.
Back home, four of the six sectors indices gained: financials by 2.37% or 43.49 points to 1,874.67, services by 1.11% or 16.24 points to 1,472.43, holding firms by 1.02% or 74.67 points to 7,350.45 and property by 0.57% or 21.18 points to 3,687.40.
The remaining two counters slumped: mining and oil by 0.74% or 74 points to 9,885.82 and industrials by 0.43% or 46.19 points to 10,604.23.
Turnover accelerated to P6.90 billion after some 1.40 billion issues switched hands, compared to Tuesday’s 2.65 billion shares worth P4.43 billion.
Stocks that gained were nearly double those that lost at 125 to 72, while 46 others ended flat.
The list of Wednesday’s 20 most active stocks showed 16 that gained, including integrated resort and casino operators Melco Resorts and Entertainment (Philippines) Corp. and Bloomberry Resorts Corp. that jumped 11.2% to P7.05 and 10.6% to P11.06, respectively. Ayala Land, Inc. surged 3.58% to P40.50, SM Investments Corp. rose 2.3% to P933, while BDO Unibank, Inc. added 4.65% to P135.

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