Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 10852

Akamai Technologies sees potential for PHL business

By Victor V. Saulon, Sub-Editor
US-BASED Akamai Technologies, Inc., which claims to be the world’s largest and most trusted cloud delivery platform, sees strong potential for its business in the Philippines as the country’s big businesses go through a digital transformation while smaller ones begin to realize the need to accelerate and secure their online systems.
“This country has a lot of potential,” said Gerald Penaflor, Akamai head of enterprise business in the ASEAN, in a media roundtable discussion in Makati City on Tuesday.
“We have 110 million people over here, 48% of our population are already, one way or the other, part of an online community and about 98% of them are all subscribers of Facebook,” he said.
He said based on how Facebook or Google are positioning themselves in the Philippines, attention is focused on the potential of an emerging country with a big population, many from younger generations, that are online everyday.
“So that’s why the potential definitely is much much more bigger compared to other countries,” he added.
Fernando Serto, Akamai head of security strategy in the Asia-Pacific, said the company started operating in the Philippines about three years ago with a few servers that have since expanded to more than 800 as of the last count.
“So it’s a very rich market for us from a target perspective. The last two years have been amazing for us in the Philippines, but we haven’t even scratched the surface yet,” he said.
Aside from its servers, Akamai’s footprint in the Philippines is seen in its presence in 16 data centers across the country. It is also co-located with six Internet service providers locally.
Around the world, the company has more than 7,600 employees and has deployed a content delivery network with more than 240,000 servers in at least 130 countries and within at least 1,700 networks.
Incorporated in 1998, Akamai closed 2017 with annual revenues of $2.5 billion, up 7% year-on-year using figures adjusted for foreign exchange.
The two Akamai officials said the need for the company’s services is borne out of threats from bot-based abuse that targets the hospitality industry and advanced distributed denial of service (DDoS) attacks.
In its study, the company said cyberattack trends for the six months from November 2017 to April 2018 show the importance of maintaining agility not only for security teams, but also for developers, network operators and service providers in order to mitigate new threats.
In the Philippines, Mr. Penaflor said the company is “very excited” about its plans for the future as the government, the banking sector, universities and homegrown e-commerce sites undergo an online transformation.
E-commerce, for instance, presents big prospects as companies in the sector have grown in neighboring countries such as Indonesia, Thailand and Malaysia, he said.
“In the Philippines, we don’t have [that] yet. Most of them are coming from regional players. So it’s just a matter of time until we start developing these services for Filipinos,” he said.
Mr. Penaflor said Akamai had tweaked its local offers to include services for small and medium enterprises, which are also embarking into their digital transformation.
“We need to make sure that we have a price point that they can leverage and they can afford,” he said, referring to small hospitals, rural banks and small e-commerce sites.
He said the company made a study on what is affordable for small companies that pay for a speed of, say, 100 megabits per second to arrive at what makes sense for them.
“We make it a point that the services that they get from Akamai is affordable to be able to bundle with the internet gateway that they have,” the official said.

Art & Culture (07/18/18)

A bit of operetta


AFTER THe success of Love Sings!, the Philippine Opera Company’s Young Artists’ Series (YAS) Season 2018-2019, in cooperation with the Cultural Center of the Philippines and The Friends of the Philippine Opera Foundation, present the second offering for the season T’AINT OPERA! (Hits from the Weird and Wonderful World of OPERETTA!). An operetta is a short opera, usually on a light or humorous theme and typically having spoken dialogue. It is often considered less “serious” than operas. While an opera’s story is usually believable and more relatable to its audience, an operetta aims to simply amuse. Notable composers of operettas include Offenbach, Johann Strauss, Lehár, and Gilbert and Sullivan. T’AINT OPERA! features familiar, easy-to-listen-to music combined with dance, acting, and storytelling that recalls happy memories of a time when life was less complicated. Listen to arias from Die Fledermaus, Merry Widow, The Mikado, Pirates of Penzance, The Land of Smiles, Yeomen of the Guard, Christopher Columbus, Candide, and many more. Directed by Jaime del Jaime Del Mundo. For details call Philippine Opera Company at 0917-645-2946.

A bit of Shakespeare

HEROES, LOVERS & VILLAINS, the culminating showcase for Repertory Philippines’ Adult Master Class 2018, will be held on July 21, 8 p.m., at The Mirror Studio, 5F SJG Center, Kalayaan Avenue, Makati. There will be excerpts of Macbeth, The Merchant of Venice, Much Ado About Nothing, A Midsummer Night’s Dream, and Shakespeare’s sonnets featuring Sofia Capua, Rico del Rosario, Elliott Hay, Elliot Miranda, Elle Sebastian, Kurt Soberano, Nico Torio, and Althea Vega, directed by Jeremy Domingo and Goldie Soon. Tickets are P300 at the door.

Performance art with Ronnie Lazaro

RONNIE LAZARO

BREATHLESS, a collaborative performance art work featuring renowned actor Ronnie Lazaro, will focus on exploring the limitations of the human body. It will be held on July 21, 6 p.m., at the Black Box Theater of the of De La Salle-College of Saint Benilde (DLS-CSB). Developed over months by Lazaro and students under the Benilde Arts and Culture Cluster, the initiative will be the first in the Philippines to use crowdsourcing to support performance art. The event is free and open to the public. Online pre-register is on-going. Visit http://bit.ly/RonnieLazaroBreathless or call 0920-299-2573 to confirm attendance. The Black Box Theater is located at the 6th floor, School of Design and Arts Campus, Pablo Ocampo (Vito Cruz) St., Malate, Manila.

Something completely different

THE Benilde Arts and Culture Cluster and the Benilde Arts Management Program present A History of Ideas, a performance/lecture written, produced, and presented by Lourd de Veyra and Erwin Romulo. This will be held on Aug. 4, 6 p.m., at the 5F School of Design and Arts Campus Theater, De La Salle — College of Saint Benilde, Pablo Ocampo (Vito Cruz) St., Malate, Manila. Tickets cost P500. For inquiries, ticket reservations and group discounts, e-mail Kaye de la Rosa at benildeartsandculturecluster@benilde.edu.ph, text Julia Francia at 0955-563-1368, text Vangie Binarao or Jaz Tugas at 0917-563-8926, call Vangie Binarao or Jaz Tugas at 230-5100 ext. 3863, or visit https://www.facebook.com/AHistoryofIdeas/. Tickets may also be purchased from Ticket World.

Submission deadline for art award extended

THE Maningning Miclat Art Foundation, Inc. (MMAFI), in cooperation with District Gallery and Far Eastern University (FEU), has extended the submission of online entries to the 2018 Maningning Miclat Art Award to July 31. Entries must be submitted to maningning2018@gmail.com. Artists of shortlisted entries will be informed through e-mail on Aug. 13. The actual artwork of shortlisted entries should be submitted along with other requirements to the FEU President’s Committee on Culture office no later than Aug. 28. Shortlisted entries will be unveiled and displayed at the Exhibit Hall of the FEU Institute of Architecture and Fine Arts from Sept. 3 to 28. Awarding will be at FEU on Sept. 28 back-to-back with the performance art, Ginugunita Kita. All submitted artworks will be available for sale. The grand prize winner, to be chosen by the Board of Judges, will receive a Julie Lluch sculpture trophy, P28,000, a Miclat book collection, and a solo exhibit at District Gallery. Maningning Miclat was a poet of three languages, prize-winning artist, published essayist, translator/interpreter and teacher. She passed on at the age of 28 in 2000. In her honor, the MMAFI, which was formed in 2001, has been organizing activities aimed at encouraging creativity and recognizing, awarding and nurturing outstanding and talented young poets and artists 28 years old and younger, the same age when she died. Poetry and painting competitions are held alternately, poetry during odd-numbered years and painting during even-numbered years. For more information, visit https://www.facebook.com/brilliant.maningning/. For inquiries, e-mail maningningfoundation@gmail.com.

Bank of America profit beats on consumer loan growth, lower expenses

BANK OF AMERICA Corp. reported quarterly profit above analyst expectations on Monday as the second-largest US lender cut expenses and benefited from growth in loans and deposits on the back of a strengthening economy.
Noninterest expense dropped 5% in the quarter from a year earlier as the bank trimmed headcount and worked on digitizing its retail operations to lower overhead.
Revenue rose in each of the bank’s segments with the exception of global banking, where lower investment banking fees dragged revenue down 2%.
During his near-decade long tenure, Chief Executive Brian Moynihan has focused on making the bank’s sprawling operations more efficient. Two years ago, he pledged to cut expenses to $53 billion by the end of this year, and the bank confirmed it is on track to meet that goal and plans to hold expenses at that level through 2020.
Banks have been broadly expected to report higher investment banking fees this year as lower US corporate tax rates and a friendlier regulatory environment encourage deal making.
Moynihan acknowledged on a call with analysts that the bank is underperforming peers when it comes to earning M&A advisory fees.
“The team knows they can do a better job, and they’re after it,” he said.
Total loans increased 2% in the quarter for Bank of America, led by growth in its consumer banking and wealth management businesses.
Total loan growth continued to be weighed by its runoff portfolio of consumer real estate loans, while year-over-year growth in Bank of America’s business segments was 5%.
Overall, Bank of America’s net income applicable to common shareholders rose 36.3% to $6.47 billion in the second quarter.
Excluding items, it earned 64 cents per share compared with the average expectation of 57 cents per share, according to Thomson Reuters I/B/E/S.
Net interest income rose 6% as the bank’s large stock of deposits and rate-sensitive mortgage securities helped it take advantage of four interest rate hikes in the past year.
Revenue, net of interest expense, fell 1% to $22.76 billion. Revenue in the year earlier quarter included a $793 million pretax gain on the sale of the bank’s non-US consumer card business. Analysts had expected revenue of $22.29 billion. — Reuters

How PSEi member stocks performed — July 17, 2018

Here’s a quick glance at how PSEi stocks fared on Tuesday, July 17, 2018.

DoLE signals NCR preparations for 4th quarter wage decision

THE Department of Labor and Employment (DoLE) said the wage board for the National Capital Region (NCR) will meet later this month to consult stakeholders and determine whether there are “supervening conditions” that will allow it to conduct wage hearings as soon as legally possible.
The NCR is one of six Regional Tripartite Wage and Productivity Boards (RTWPBs) currently assessing socioeconomic conditions, Undersecretary Ciriaco A. Lagunzad III told reporters. The other boards are those of Region I (Ilocos ), II (Cagayan Valley), IV-B (Mimaropa), X (Northern Mindanao) and Caraga.
Boards are not allowed to hear wage petitions within one year of the last action. The NCR board’s last action was issued on Sept. 14, 2017, taking effect on Oct. 5 that year.
NCR inflation in June was 5.8%, according to the Philippine Statistics Authority (PSA). In Region I, inflation was measured at 5.1%, while for Region II it was 3.9%. Inflation in Region IV-B was 4.1%, and in Region X it was 4.9%. Caraga inflation was 3.6%.
“For boards who determine that there are supervening conditions, they could actually entertain petitions before the anniversary,” Mr. Lagunzad said.
“But that has to be determined by the board and confirmed by the (National Wage and Productivity Commission). Usually, the boards will decide on the wage issue when the anniversary happens,” he added.
Mr. Lagunzad said that the NCR board “is set to meet on July 24 and will conduct consultations in preparation for the immediate conduct of public hearings once its wage order (WO) reaches its anniversary date.”
Cagayan Valley also plans to perform “continuous monitoring and consultations with government agencies” and “publish notices of public hearing upon the anniversary date of the current WO.”
Ilocos region, whose WO anniversary is Jan. 25, 2019, will perform a “desk review of socioeconomic indicators.” Caraga will also be performing a desk review but will “start the wage setting process” after its anniversary date on Dec. 8.
Mimaropa’s earliest date to issue a WO is October.
Northern Mindanao will be conducting public hearings in July and August.
Mr. Lagunzad also added that “Nine boards have decided to raise their minimum wage and two boards are about to issue their wage order.”
These nine regions are Region III (Central Luzon), IV-A (Calabarzon), VI (Western Visayas), VII (Central Visayas), VIII (Eastern Visayas), IX (Zamboanga Peninsula), XI (Davao Region), XII (Soccsksargen), and the Autonomous Region in Muslim Mindanao (ARMM).
Davao may end up with the highest increase in wages at P56.43, though the Labor department has yet to announce when this increase will take effect.
The regions whose WOs have yet to be published are Central Visayas (P10 to P52) and Zamboanga (P20).
Those whose WOs are already effective are Eastern Visayas (P20-30), Soccsksargen (P16 to P18), Western Visayas, (P8.50 to P26.50), and Calabarzon (P9 to P45). ARMM, despite having the highest inflation rate of all the regions, had a P15 increase in basic pay and the region’s WO took effect last month.
Central Luzon (P20) will have its WO take effect on Aug. 1.
On the other hand, the Cordillera Administrative Region (CAR) and Region V (Bicol) are “expected to issue wage orders within the month of July and August 2018.”
CAR is expected to issue a new WO by this month. Bicol will hold a public hearing on July 20 and deliberations will be on July 24 and 31, and Aug. 7 and 14.
Mr. Lagunzad said factors considered in setting the minimum wage are “the requirements of the workers, the needs of the workers and their families, and the capacity of the employers to pay.” — Gillian M. Cortez

June auto sales drop as inflation curbs buying

VEHICLE SALES in the first half dropped by more than 12%, auto and truck manufacturers said, noting that potential buyers prioritized their basic needs over the acquisition of high-value goods amid rising inflation.
The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) said in a joint statement that vehicle sales in the first six totaled 171,352 units, down 12.5% from a year earlier.
In June, auto sales amounted to 29,350 units, down 21.7% from a year earlier and down 4% compared with May.
Lawyer Rommel Gutierrez, president of CAMPI, said consumers are keeping their purchasing in check, preferring to satisfy their need for basic goods and services instead of big-ticket items at a time of high inflation.
In June, inflation was 5.2%, the highest in five years.
“This is typical consumer behavior when economic conditions are a bit gloomy… However, we remain optimistic that our sales will recover in the coming months, and sustain growth by the end of the year,” the industry associations added.
Car sales saw the biggest drop in June purchases, plunging 42.6% to 7,766 units. This was followed by sales of category-1 Asian Utility Vehicles, which declined 31.7% to 5,061 units.
June sales in the commercial vehicle segment fell nearly 10% to 21,584 units.
The decline in sales of light commercial vehicle and light trucks was less pronounced, falling 0.6% to 15,179 units and 5.7% to 706 units sold, respectively.
Sales of trucks and buses grew by 25% and 22.9%, respectively. Truck sales rose to 445 units and buses rose to 193 units.
Toyota Motor Philippines Corp. remained the industry leader with a 42.7% market share at the end of June.
This was followed by Mitsubishi Motors Philippines Corp. at 19.5%.
Rounding the top five were Nissan Philippines, Inc. with a 7.72% market share; Ford Motor Co. Philippines, Inc. at 7.3%; and Honda Cars Philippines, Inc. at 7.01%. — Janina C. Lim

PEZA to seek GOCC status to fend off diminished TRAIN 2 role

THE Philippine Economic Zone Authority (PEZA) is proposing amendments to the law that created the investment promotion agency to convert it into an independent government-owned and controlled corporation (GOCC).
PEZA Director-General Charito B. Plaza said the agency is in the process of preparing amendments to Republic Act 7916 or the Special Economic Zone Act of 1995.
The push to become a GOCC appears to be an attempt to head off a diminution of PEZA powers being contemplated in reforms to the investment incentive system under the proposed package 2 of the Tax Reform for Acceleration and Inclusion (TRAIN) law.
“The PEZA law is now 23 years old. There are so many weaknesses,” Ms. Plaza said in a news conference on Monday.
PEZA is hoping to become a GOCC and be transferred to the control of the Office of the President from the Department of Trade and Industry (DTI).
“As a GOCC, we will fully independent, and have all the authority provided by law. No need for another body,” Ms. Plaza added, noting that PEZA is acting like a de facto GOCC at the moment as it generates its own revenue.
She said TRAIN package 2 is hoping to centralize all incentive approvals through the creation of a Fiscal Incentives Review Board (FIRB) combining the functions of the various agencies currently authorized to offer incentives.
She said an FIRB will have the effect of “abolishing” the agency’s primary function and “diminishing” it to a registry of investments.
She added that the FIRB will create redundancies as the PEZA board, the interagency decision-making body that approves incentives, includes some of the same regulators that will make up the proposed FIRB.
“The more red tape, the more interference of various bodies and agencies, the more that our investors will be discouraged. The number one thing that they consider is the ease of doing business in the Philippines and PEZA is providing that,” Ms. Plaza said.
“We will propose in the PEZA law (amendments) to authorize the PEZA board to grant incentives instead of giving these to the proposed FIRB under the TRAIN 2,” she added.
In response to TRAIN 2, the agency will recommend a freeze to the proposed changes on incentives currently enjoyed by 4,202 locators.
“Incentives are proven to be good at attracting investors. They are happy. PEZA is gearing up to providing more and better packages that will attract more investors, so we will ask Congress to allow PEZA to continue with an enhanced role,” Ms. Plaza said.
In addition to its proposed amendments, PEZA is proposing an overhaul of incentive categories.
These will be divided into general incentives, to be given to all types of industries; customized incentives, for strategic industries in pioneer sectors; and incentives conforming to the Finance Department’s preference for perks that are performance-based and time-bound.
The generalization of incentives is expected to save PEZA the need to meet with the Department of Finance periodically to consult on incentive approvals.
Meanwhile, PEZA will also be recommending a provision authorizing the PEZA board to recommend to the President subsidies to grant to locators, especially those who will be bringing in projects worth at least $1 billion.
The PEZA said China’s Panhua Group, which is considering investing in a $3.5-billion integrated steel hub in the Philippines, is seeking support from the government in the form of subsidies.
Ms. Plaza said the government should consider power subsidies for Panhua.
The Panhua Group is expected to manufacture 10 types of steel products at volumes that will satisfy domestic demand.
Asked on the timeline the agency intends to submit its suggested amendments, Ms. Plaza said: “We will soon file in Congress. We hope to have this filed before the State of the Nation Address (SONA) or immediately after the SONA.”
“The Senate is 99% very supportive of PEZA. The ULAP (Union of Local Authorities of the Philippines) even assured PEZA that they will also lobby their respective congressmen to support PEZA,” she added. — Janina C. Lim

DoTr to adopt new project rules after CoA report

THE Department of Transportation (DoTr) said it will adopt new rules to address delays in the roll out of projects and fund disbursement pointed out by the Commission on Audit (CoA).
Transportation Secretary Arthur P. Tugade said in a media briefing in Clark on Tuesday, “We’ll start the process early, so when the Congress approves the budget, we can allocate and spend it more readily.”
He added that the reforms cover expediting the preparation of the detailed engineering design (DED) which usually takes three months after receiving budget approval from Congress, and to issue the notice of award and notice to proceed at the same time.
The CoA report found issues with the launch of 153 out of 159 projects because of policies that hamper execution.
The DoTr said the policy changes were meant to make the process more efficient as older policies cause longer delays.
“The CoA report is correct, but the conclusion or perception of others that it means we are not doing our jobs is wrong,” Mr. Tugade said.
The DoTr said its obligation rate, or the funding it secured for projects in 2017, was at 80%, with a disbursement rate of 25%.
He said getting to fund disbursement usually takes the DoTr eight months, but with the changes, it hopes to remove as many as four months from the process.
“If you remove the notice to proceed, you’ll save 30 days. If you remove the DED after Congress (approval), you’ll save around three months. That’s the time we’re looking to cut,” Mr. Tugade told reporters.
The DoTr also addressed the supposed “quadrupling of expenses” when it moved to its office in Clark, saying although it indeed pays more rent for its new office, it now occupies a bigger land area and pays its lease to the Clark Development Corp., which in effect goes to the government, instead of a private institution.
The former office of the DoTr was in 58 condominium units at Columbia Towers in Mandaluyong CIty.
Mr. Tugade noted the bigger space is meant to accommodate more DoTr units including the back offices of the Land Transportation Franchising and Regulatory Board (LTFRB), the Land Transportation Office (LTO) and the Toll Regulatory Board (TRB).
He said this is to help ease road congestion in Metro Manila, especially East Avenue in Quezon City where the LTFRB and LTO hold office. — Denise A. Valdez

BoC to expand data-sharing efforts with other agencies

THE BUREAU of Customs (BoC) said it is hoping to implement a data-sharing system with other law enforcement agencies to aid anti-smuggling efforts.
In a statement from the Department of Finance (DoF), Customs Commissioner Isidro S. Lapeña recommended the establishment of a data sharing systems between the BoC and the Bureau of Internal Revenue (BIR), the Philippine Coast Guard (PCG) and the Armed Forces of the Philippines (AFP).
“[The task force is] a joint undertaking. The signing of a Memorandum of Agreement is with the BIR also, and the Philippine Coast Guard, AFP and other law enforcement agencies that we will be needing assistance from,” Mr. Lapeña said.
He added that it hopes to harness the capabilities of the patrol vessels of the PCG to monitor smuggling activities.
“We will be assigning people who will be trained [by the PCG] until such time that they are capable of operating the vessels themselves,” he said.
Mr. Lapeña was referring to the patrol vessels that were acquired through loans from European banking institutions under the Philippine Port and Coast Guard Capability Development Project (PCG Vessels Project).
Finance Secretary Carlos G. Dominguez III requested last year that the vessels be transferred from the Department of Transportation to the BoC.
The BoC is in the process of signing a memorandum of agreement with the BIR on information sharing and coordination to help combat smuggling, amid the proliferation of counterfeit cigarettes.
Tax effort in the first quarter grew to 14.3% of gross domestic product from 13.4% a year earlier.
Both the BoC and the BIR are exceeding their collection targets as of mid-year, with the government attributing their performance to the enactment of the Tax Reform for Acceleration and Inclusion law. — Elijah Joseph C. Tubayan

Business groups lobby PAL for Davao-Japan flights

DAVAO CITY — Filipino and Japanese business groups have asked flag carrier Philippine Airlines (PAL) to open direct flights between Davao City and Japan to boost tourism and trade links.
“We must not wait for them (Japanese) to come, let us come up with key initiatives to attract them,” Arturo M. Milan, president of the Davao City Chamber of Commerce and Industry, Inc. (DCCCII), told BusinessWorld last week.
The letter has 18 signatories, including Davao-based Japanese Consul General Yoshiaki Miwa and representatives of the Japanese Chamber of Commerce in Mindanao.
The letter was submitted earlier this month to PAL President Jaime J. Bautista through Victor D. Suarez, area head for Mindanao Sales and Services.
Mr. Milan said interest in Davao from Japanese investors has been on the rise while several government projects undertaken with Japanese cooperation are in the works.
“Japanese government and some private organizations have signed joint venture agreements with the local government of Davao on solid waste management, a biodiesel plant and the Mindanao Railway System,” the letter pointed out.
The city government, through the Davao City Investment Promotion Center (DCIPC), also expressed support for the request and noted that Filipino tourists to Japan have also been increasing.
DCIPC “welcomes this initiative as recent data shows the viability of the route as evidenced by the number of Filipinos traveling to and living in Japan, as well as Japanese residents who want to travel to Davao City,” said the agency’s head, Lemuel G. Ortonio.
“The proposed connectivity between Davao City and Japan will open opportunities for boosting economic growth, facilitating convenient movement of goods and people, and increasing the tourism activities and business exchanges in both destinations,” Mr. Ortonio added.
The letter also cited the “increasing (Japanese) tourist arrivals” and the plan of the city government, with the help of the Tourism and Infrastructure Enterprise Authority, to rehabilitate and develop the ‘Little Tokyo’ in Mintal, an old Japanese settlement pre-dating World War II where a Japanese cemetery is located.
Alexander D. Divinagracia, president of the Davao Travel Agencies Association (DTAA) and general manager of Globalwings Travel and Tours, said August is a particularly good period for attracting Japanese tourists with Davao’s Kadayawan Festival and the Japanese-Buddhist Obon Festival of honoring ancestors.
“We can revive this (Obon Festival). Most of the participants are elderly and the direct flight would be of big help,” he said.
Aside from tourists on both sides, Mr. Divinagracia said there is a significant number of overseas Filipino workers in Japan.
“I will support this move to open a direct flight. Let’s see. It’s always a joint effort of everybody to sustain this route,” he said. — Carmelito Q. Francisco and Maya M. Padillo

Investors turn attention to earnings reports

By Arra B. Francia, Reporter
THE MAIN INDEX eked out last-minute gains on Tuesday after moving within a tight range as investors await the release of corporate earnings results in the coming weeks.
The 30-company Philippine Stock Exchange index (PSEi) climbed 12.24 points or 0.16% to finish at 7,381.68, bouncing back from the previous session’s losses, while the all-shares index added 2.78 points or 0.06% to 4,465.38.
“The Philippine market tried to rebound on opening, but failed to sustain its strength and traded in negative territory until market-on-close orders pushed it to finish 12.24 pts or 0.17% higher at 7,381.68,” RCBC Securities, Inc. noted in its Stock Market Daily Recap.
Timson Securities, Inc. trader Jervin S. de Celis said in a mobile phone message that “[i]nvestors are anticipating the release of second-quarter corporate earnings from some blue-chip companies in the next few weeks, though market participants are being selective.” “Although most of the index stocks have rallied from the past two weeks, our index is still trading below its average volume turnover,” Mr. De Celis added.
For Papa Securities Corp. trader Gabriel Jose F. Perez, PSEi’s performance reflected “hesitation felt all around,” noting in an e-mail that “7,400… remains to be the initial obstacle to overcome, but with the low volume we’ve been seeing and stochastics being overbought it might be best to still exercise caution.”
The six sectoral indices were equally divided between those that advanced and losers.
Those that gained consisted of services (up 14.04 points or 0.98% to 1,443.23), industrials (44.76 points or 0.42% to 10,515.49) and property (7.04 points or 0.19% to 3,596.15), while those that lost were holding firms (down 19.5 points or 0.26% to 7,230.25), financials (0.63 point or 0.03% to 1,823.20) and mining and oil (0.01% or 1.03 points to 9,658.62).
Some 456.02 million issues worth P3.59 billion changed hands, compared to Monday’s 919.84 million worth P4.28 billion. Stocks that gained narrowly outnumbered those that lost 91 to 90, while 55 others closed flat.
Net foreign selling persisted, growing 72.23% to P481.06 million from Monday’s P279.31 million. Timson Securities’ Mr. De Celis attributed this to investors’ anticipation of retail sales report and jobless claims in the United States this week that may persuade the US Federal Reserve to remain hawkish. “This may trigger further net foreign selling in that case,” Mr. De Celis said.
Half of Tuesday’s 20 most active stocks gained, led by Metropolitan Bank & Trust Co. (up 0.29% to P70 each); Ayala Land, Inc. (0.81% to P37.40); BDO Unibank, Inc. (0.86% to P129) and Universal Robina Corp. (1.63% to P130.80).
The same list showed eight that lost, including Security Bank Corp. (down 0.19% to P211.60), Megawide Construction Corp. (4.41% to P18.20) and Bank of the Philippine Islands (1.14% to P95.50 apiece).

Peso up ahead of Powell speech

peso dollar bills
THE PESO rebounded ahead of the US Federal Reserve chief’s testimony.

THE PESO bounced back on Tuesday as the dollar weakened across major currencies ahead of the testimony of US Federal Reserve Chairman Jerome Powell and following the stronger remittance data released Monday.
The local unit ended Tuesday’s session at P53.39 against the greenback, 14 centavos stronger than the P53.53-per-dollar finish on Monday.
The peso strengthened a tad immediately on Tuesday as it opened the session at P53.50 versus the dollar. Its intraday low stood at P53.53, while its best showing was at P53.38 against the greenback.
Dollars traded climbed to $504.59 million from the $290.75 million that exchanged hands the previous session.
A foreign exchange trader said the peso finally moved stronger against the greenback as investors wait for the testimony of Mr. Powell at the Capitol Hill.
“Finally, the peso moved stronger on Tuesday ahead of the Powell Senate committee hearing,” the trader said in a phone interview Tuesday.
Mr. Powell will testify before the Senate Banking Committee as he will discuss the monetary policy of the Fed, with the market anticipating for two more rate hikes amid the continued expansion of the American economy.
“The dollar weakened across the board against all major currencies, including the peso, ahead of that hearing,” the trader said.
Meanwhile, Michael L. Ricafort, economist at Rizal Commercial Banking Corp., attributed strengthening of the peso to the good remittances data released on Monday.
Money sent home by Filipinos abroad amounted to $2.469 billion in May, the biggest since December 2017’s record-high $2.741 billion, according to central bank data.
For Wednesday, the first trader expects the peso to move between P53.25 and P53.45, while the other gave a P53.40-P53.60 range amid likely hawkish cues Mr. Powell’s testimony. — Karl Angelo N. Vidal

1...10,85110,85210,853...12,827Page 10,852 of 12,827
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube