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Investors unload Cemex Philippines stocks over potential stock rights offering

By Lourdes O. Pilar
Researcher

NEWS of Cemex Holdings Philippines, Inc.’s plans to more than triple its authorized capital stock as part of efforts to raise funds through a potential stock rights offering (SRO) made the Cemex stock one of the most actively traded last week.

Data from the Philippine Stock Exchange showed the cement manufacturer trading P721.26 million worth of 329.21 million shares from April 1-5.

Shares closed at P2.02 apiece on Friday, unchanged from the previous day but down 22.9% week on week from the P2.62 finish on March 29. For the year, the stock gained 3.6%.

“Cemex Holdings became one of the most actively traded stock [last] week after it disclosed its plan to increase its authorized capital to enable itself to raise funds via SROs or other fund-raising options,” said trader Jervin S. de Celis of Timson Securities, Inc. in an e-mail interview.

“Market participants were probably surprised about this and raced to liquidate their shares because the amount of $250 million to be raised has a massive dilutive effect on the company’s earnings,” Mr. De Celis explained, adding that since the disclosure did not contain further details, it urged investors to sell on the assumption that the offer might be lower than the market price.

In a disclosure to the stock exchange last Wednesday, the listed cement manufacturer said its board of directors has approved the increase of its authorized capital stock to P18,310,395,454, consisting of 18,310,395,454 common shares with a par value of P1 per share.

The amendment, the company explained in the statement, will enable them to raise equity capital “including, but not limited to” a rights offering subject to approval of the board of directors. Its authorized capital stock currently stands at about P5.195 billion divided into around 5.195 billion common shares at P1 each.

Unicapital Securities, Inc. Research Head Wendy Estacio noted the Cemex stock was actively traded in the past weeks due to its bullish chart patterns as investors hoped for a first-quarter earnings recovery, but this was reversed on news of the planned SRO.

From last Tuesday’s P2.66 closing price, Cemex shares reached an intraday low of P2.19 per share on Wednesday before closing at P2.26 per share when the news of the SRO was disclosed. On that day, 118,225,000 of the company’s shares were traded versus the 13,678,000 shares having exchanged hands the day prior.

Net selling continued on Thursday, bringing the stock’s closing price further down to P2.02 per share. The closing price was unchanged on Friday.

Cemex is looking to raise up to $250 million to improve its capital structure, provide flexibility in its balance sheet, and fully fund the company’s expansion of its Solid Cement plant in Antipolo, Rizal.

Worth about $235 million, the expansion will add 1.5 million metric tons (MT) a year to Solid Cement’s current capacity of 1.9 million MT, increasing Cemex’s overall capacity by 26%.

“It seems like they cannot fully fund the project despite being delayed from 2019 to 2020. However, to be fair, this will improve its financial position given its huge exposure to debt securities,” Unicapital’s Ms. Estacio said.

Cemex booked a consolidated net loss of P930 million in 2018, compared to a net income of P659 million in 2017. The net loss came amid a seven percent increase in net sales to P23.42 billion, driven by residential construction due to the high demand from overseas Filipino workers, foreign investors, and outsourcing and offshoring companies.

“After the government’s move to protect local players from cement imports, the rising prices of cement may help Cemex to recover this year. Net profit may settle between P800 million to P1.2 billion,” Timson Securities’ Mr. De Celis said.

“Cemex Holdings is trying to find support between P1.94 to P1.96 and since the sentiment for this stock is expected to remain negative, it may struggle to breach its resistance level of P2.20 at least in the short run,” he said.

For Unicapital’s Ms. Estacio: “I projected Cemex Holdings losses to be trimmed to P744.6 million from P930.1 million in 2018 with the expectation that the average selling prices of cement will slightly improve, but still pricing in the impact of higher interest expenses and foreign exchange losses.”

She placed the company’s support level at P1.90 per share and resistance level at P2.40 per share in the short term. “Possible recovery could be observed by 2020 provided that the Solid Cement plant starts commissioning,” she said.

Cemex Holdings is the local unit of Mexican cement and construction materials company Cemex S.A.B. de C.V. Its cement products are sold under three brands, namely Island and Rizal for Luzon, and APO for the Visayas and Mindanao.

Boracay indigenous community to train as produce supplier

A DEVELOPMENT plan is being prepared for the 3.2064 hectares of land initially awarded to the Boracay Ati Tribal Organization (BATO) last year, with the indigenous community being positioned as suppliers of fruit and vegetables for the tourism industry.

The farm could also serve as an agri-tourism site, with community members trained in foreign language lessons and other hosting skills.

“We are planning to develop the agricultural land… and hopefully they can produce crops that would supply the island. Based on a survey, 80% to 90% of the fruits and vegetables here are supplied by Baguio and Mindoro,” Department of Agrarian Reform (DAR) Western Visayas Regional Director Stephen M. Leonidas said in a phone interview.

Last week, DAR convened various island stakeholders to discuss the support needed for the implementation of the development plan.

“During the forum, the consultants presented how to develop the parcels of land for the Ati community. The distribution of land will be useless without the necessary support,” Mr. Leonidas said.

“Once this plan (is) developed, it will not only promote tourism but also serve as a source of income for the Ati communities,” he added.

The Ati farms are also being positioned for agri-tourism.

Mr. Leonidas said part of the development plan involves enhancing the communication skills of the Atis, allowing them to interact with visitors, including the island’s top foreign guests, South Koreans and Chinese.

The awarding of the land to the Ati community is part of the Boracay rehabilitation program. — Emme Rose S. Santiagudo

Corregidor Island’s heroic legacy

AS THE Philippines celebrates its heroes — April 7 is Veterans Day, and April 9 is Araw ng Kagitingan or National Heroes’ Day — it is good to remember Corregidor which has become synonymous with Filipino and American courage and determination in protecting our freedom.

Despite relentless attacks by Japanese forces in 1942, and without reinforcements coming from the United States, Filipino and American troops fought in Bataan and Corregidor for months. The troops on Bataan fought from Jan. 7, 1942 until April 9, 1942 when they were overwhelmed by superior Japanese firepower and troop numbers. After some 76,000 Filipino and American troops surrendered, they were forced to walk almost 100 kilometers from Bataan to Capas, Tarlac in what came ot be called the Bataan Death March.

This left Correigidor to hold the line. From the very start of the war in the Pacific, Dec. 29, 1941, until May 6, 1942, the Japanese Imperial Army attacked Corregidor relentlessly, dropping thousands of bombs on the island which guards the mouth of Manila Bay. On May 6, the leader of all US and Filipino Allied forces in Asia, Lt. Gen. Jonathan Wainwright, led his men in their surrender to the Japanese. They had fought as long and as hard as humanly possible.

Corregidor 2
Malinta Tunnel. This tunnel, which is 253 meters long, 7.3 meters wide and 5.5 meters high, served as the residence of Philippines President Manuel L. Quezon and Vice-President Sergio Osmeña along with their families after they fled Manila during the Japanese invasion of the Philippines in World War II. Quezon, Osmeña, and their families were eventually brought to the US along with Gen. Douglas McArthur via submarine before the island was surrendered to the Japanese. The tunnel also housed soldiers, medical personnel, and civilians left behind while Japanese forces laid siege to Corregidor. Near the war’s end, it was the Japanese troops turn to be bombed relentlessly as the Allies retook the island.

Today Corregidor Island is a popular historical tourist attraction. Among its attractions are the Pacific War Memorial with its Dome of Peace, and a sculpture called the Eternal Flame of Freedom. There’s also the Pacific War Memorial Museum that houses World War II memorabilia. Visitors can take a guided tram tour of the island, and pass through the Malinta tunnel where a lights and sounds show simulates what it was like during the island’s darkest days when its residents sought shelter from the Japanese bombs underground.

Corregidor is currently undergoing more improvements following a 10-month tourism masterplan by Palafox Associates. Now categorized as an eco-tourism site, Corregidor is managed and operated by the Corregidor Foundation, Inc. As an eco-tourism site, the island now has a fully functional beach resort and camp sites. Corregidor is easily accessible via a ferry from the Esplanade Seaside Terminal in the SM Mall of Asia Complex.

For more information, go to http://www.corregidorisland.com.ph/

Yields on gov’t securities go up on inflation bets

By Mark T. Amoguis
Researcher

YIELDS on government securities (GS) inched up last week as market players took profit ahead of the release of slower-than-expected March inflation data.

Debt yields — which move opposite to prices — increased by an average of 8.1 basis points (bp) on week-on-week, the PHP Bloomberg Valuation Service Reference Rates as of April 5 published on the Philippine Dealing System’s Web site showed.

A bond trader said in a mobile phone message that profit taking and unwinding of bets on a reserve requirement ratio (RRR) cut fuelled last week’s trading.

Michael L. Ricafort, economist at Rizal Commercial Banking Corp. (RCBC), said in an e-mail last Friday that yields on benchmark tenors corrected higher “partly due to latest signals from some BSP (Bangko Sentral ng Pilipinas) officials that any cut in policy rates or in large banks’ RRR may not be immediate, while signalling that easing of monetary policy will only be considered if inflation goes down further…”

In a separate e-mail, Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc., said: “There were a lot of positive drivers for yields [last] week. One is the general positive tone of the probable results of the trade negotiations between the US and China. Another is the adjusted Q4 GDP (gross domestic product) for the Philippines and, lastly, the lower-than-expected March 2019 inflation.”

“Market players have had more opportunities to profit off these particular ‘good news.’ There were bouts of sell-offs that dragged the yields downwards, but there were repositioning that happened pushing yields up,” he added.

Last Friday, the Philippine Statistics Authority (PSA) reported that inflation eased further for the fifth straight month in March to 3.3% from 4.3% in February and 4.3% in March last year on the back of slowing food prices.

The March figure fell within the central bank’s 3.1%-3.9% forecast for that month but lower than the 3.5% median estimate in a BusinessWorld poll of 13 economists.

The latest reading brought the year-to-date print to 3.8%, which is within the BSP’s 2%-4% target range for this year but above its 3% forecast for 2019.

BSP Governor Benjamin E. Diokno said the central bank will consider all relevant information at its next policy meeting in May.

The BSP chief has said he sees room to cut policy rates — currently at 4.25%-5.25% range — but clarified that monetary authorities still have to confirm if the downtrend in inflation will be sustained.

Meanwhile, the PSA revised upward on Thursday the GDP figure for the last quarter of 2018 to 6.3% from 6.1% initially, but the annual GDP growth for 2018 was kept at 6.2%.

On the other hand, according to a Reuters report, US President Donald J. Trump said the US and China are very close to making a trade deal that could be announced within four weeks.

At the close of the trading on Friday, the short end of the yield curve ended mixed as six-month Treasury bill increased by 2.6 bps to 5.966%, while three-month and one-year papers declined by 3.8 bps and 2 bps, respectively, to close at 5.761% and 6.077%.

Meanwhile, the belly of the curve went up as the two-, three-, four-, five-, and seven-year debt papers increased by 7.1 bps, 6.8 bps, 8 bps, 10.4 bps, and 16.7 bps, respectively, to fetch 5.893%, 5.816%, 5.759%, 5.731%, and 5.766%.

The long end likewise climbed as yields on the 10-, 20-, and 25-year bonds rose by 26.5 bps, 14.1 bps, and 2.5 bps, respectively, to 5.87%, 5.96%, and 6.12%.

For this week, UnionBank’s Mr. Asuncion said GS yields may continue to increase as the market may take its cue from foreign markets, citing the possible trade deal between the US and China.

The bond trader expects the “yield curve to bear steepen as dealers will try to trim their position ahead of 10-year [bond] auction and Holy Week. Yields may rise by additional 10 to 20 bps.”

The Bureau of the Treasury will offer on Wednesday reissued 10-year Treasury bonds worth P20 billion with a remaining life of nine years and nine months.

Summer auto spectacle:MIAS 2019 a testament to industry health

Text and photos by Kap Maceda Aguila

THE annual summer spectacle that is the Manila International Auto Show (MIAS) once again happened at its usual haunt, the World Trade Center Metro Manila in Pasay City. MIAS is known as the country’s longest-running and largest car show.

Staged from April 4 to 7, the 15th edition of the exposition organized by Worldbex Services International (WSI), this year for the benefit of ABS-CBN Lingkod Kapamilya Foundation, Inc., was themed “Experience Fun and Function.”

In a speech at the opening ceremonies, WSI Founding Chairman Joseph Ang said: “When we think about why people would want to go to MIAS, two things come to our mind: fun and function. At the end of day, what we hope, want, and expect from our show is to immerse in experiences that are fun as well as to be exposed to the function of the latest innovations in automotive market.”

The much-awaited motor show is widely considered a popular occasion for motoring fans to catch up on the latest from a variety of auto marques and after-market suppliers. Participating brands have been known to take advantage of MIAS to launch new cars and offer deals for people on the lookout for a new vehicle or accessories. Immersive and interactive activities abound for visitors of all ages.

“The new car releases this year at MIAS are an interesting mix of practical and fun cars — just right for the theme,” said MIAS co-organizer Jason Ang exclusively to BusinessWorld. “There were sedans and small SUVs like the MG 6 and the Subaru XV GT, premium family SUVs like the Hyundai Palisade, and dream cars like the Chevrolet Camaro and Kia Stinger.”

Aside from the auto exhibits at the main hall, car club displays were set up at the World Trade Center driveway, a monster truck display at the North Wing of the venue, and even a miniature die-cast car collection. Returning once more was MIAS regular Russ Swift, Guinness World Record holder for parallel parking in the tightest space, executing J-turns in the tightest space, and fastest time doing 10 donuts. Also presented (in partnership with Petron) was the usual Class Car Competition, which featured over 100 entries.

Noting the healthy state of our automotive industry, Automobile Association Philippines President Augusto Lagman recounted in his own speech, “About three years ago in an international motoring conference, one of the speakers said that by 2025, less cars will be purchased (because) ride-sharing had become popular. Well, if it does happen, I don’t think it will come to the Philippines that quickly.”

“Car makers are opting for fuel efficiency, as gasoline and diesel prices continue to rise. When variants are launched, they usually come with smaller engines and drivetrain configurations that are geared for fuel efficiency. Small and snazzy cars like the Suzuki Jimny and Hyundai Kona will see substantial demand,” predicted Ang.

Representing Department of Transportation (DoTr) Secretary Arthur Tugade was Assistant Secretary Goddes Hope Libiran, who shared, “‘Make the Filipino life comfortable.’ That was the marching order of President Rodrigo Roa Duterte to our Department of Transportation Secretary… when he was appointed to the DoTr.”

Libiran noted that the department has been working on enhancing mobility and improving connectivity, and that moving with ease and efficiency is tied into the government’s so-called “Build, Build, Build” campaign to establish infrastructure. “In the last three years, we have been inaugurating new airports and rehabilitating existing ones to facilitate ease of movement for the Filipinos,” she said. We’re also building land ports, kilometers and kilometers of railways, and conducting sea port projects throughout the country. Specifically for the road sector, our infrastructure projects go hand in hand with transportation initiatives that do not merely aim to change the kind of vehicles we see on the road, but moreso the culture on the road.”

Starting in 2005, MIAS then had a modest footprint of 6,000 square meters of indoor space and an additional outdoor area of 3,000 square meters. According to co-organizers Jason Ang and Alvin Uy, the yearly event was “envisioned to be a world-class spectacle competitive with the region’s best… We’re glad that the manufacturers and the public have embraced the concept.”

Last year’s MIAS breached an attendance figure of 138,000. Visitors got to enjoy the sights and sounds of a myriad of exhibitors spread out over 34,000 square meters.

Meralco to expand hybrid solar power system

By Victor V. Saulon
Sub-Editor

MANILA ELECTRIC Co. (Meralco) is expanding its hybrid solar power system in Cagbalete Island in Quezon province to reach one megawatt (MW) for completion within a year if it is able to secure the necessary regulatory permits, a company official said.

“The pilot (project) in Cagbalete was 60 kilowatts (kW), pero (but) the next one, we want it in the megawatt range na (already),” Lawrence S. Fernandez, Meralco vice-president and head of utility economics, said in a chance interview last week.

“We have operationalized the one in Isla Verde. We’re waiting for DoE (Department of Energy) and ERC (Energy Regulatory Commission) permits for the one in Cagbalete Island. But even while waiting for the permit for that, we already filed a letter of intent with DoE to expand it, to be able to serve more customers in Cagbalete,” he said.

Meralco energized its Isla Verde power system in Batangas province on Feb. 15, through a collaboration with local government units and the United States Agency for International Development (USAID).

The microgrid, or a small-scale electricity grid, is a hybrid of a 32-kW solar energy system and a 192-kilowatt-hour (kWh) battery storage facility. It can be operated independently from the country’s interconnected network of power transmission facilities.

“If we can get the permits, we can finish it within the year,” Mr. Fernandez said about the Cagbalete expansion.

He said the target is to be able to serve the two barangays in Cagbalete. The expansion is for the southern barangay, he added. Both Isla Verde and Cagbalete islands are part of Meralco’s franchise area.

The islands are accessible only by a boat ride from the Luzon main island, making it a challenge to connect with the mainland power grid. For years, locals have been subsisting on diesel generator sets for electricity at night.

Both islands have become popular tourist destinations, but their development has been weighed down by the slow growth in tourism infrastructure because of inadequate electricity.

REGULATION OF MICROGRIDS PUSHED
Separately, the chairman of the Senate committee on energy is planning to file a bill that will regulate microgrid systems, thus offering a level planning field to a nascent industry that has given a first-mover advantage to solar energy developer Leandro L. Leviste.

“This is a law that will allow microgrids to operate in unserved and underserved areas. So it will not be only for Solar Para Sa Bayan but open na ngayon (will now be open). There’s now a framework for everyone without a franchise,” Senator Sherwin T. Gatchalian told reporters last week.

Mr. Leviste’s Solar Para Sa Bayan Corp., which is awaiting a congressional franchise to operate in some areas in the Philippines, can still participate, the senator said.

“Ang objective naman namin (Our objective) is to even the playing field,” he said, adding that microgrid proponents need not apply for a congressional franchise to operate.

He differentiates the bill from existing regulation covering a “qualified third-party,” which is allowed to operate in an unserved and unviable area waived by the franchisee, as the proposal will also allow the entry into underserved areas.

Mr. Gatchalian said an underserved area is one that enjoys less than a 24-hour-a-day, seven-day-a-week electricity. Unserved areas have no electricity while unviable areas have no electricity because they are not deemed to be profitable for a power developer or a utility.

“DoE will also determine other measure for underserved [areas],” he said.

“So, let’s say El Nido madalas mag-brownout (which often experiences brownouts) can be declared as underserved. A microgrid operator can now go into El Nido,” he added.

Mr. Gatchalian said the bill will grant a permit to operate to a microgrid developer through a competitive selection process, a scheme that rewards those who offer the least cost of electricity.

A microgrid operator is “vertically integrated,” thus it covers the generation, transmission and distribution of electricity, he said.

Indonesia blocks EU spirits in escalation of palm oil spat

BRUSSELS — European spirits makers say they are facing difficulties exporting drinks to Indonesia amid tension after Jakarta said it was unhappy with an EU decision that palm oil should not be considered a green fuel.

SpiritsEurope, which represents major European spirits makers and national associations, said on Thursday it had learnt from members with business in Indonesia that they were suffering delays in securing approval to import EU products into the country.

Indonesia regulates imports of alcohol through an annual import and distribution plan.

Spirits makers were finding that non-EU products, such as tequila, were securing approval, but EU-origin products were not, an industry source said.

Diageo, the world’s largest spirits company, declined to comment.

The European Commission, which oversees trade policy for the 28 EU countries, decided in March that palm oil cultivation in general results in excessive deforestation, setting the bloc on a collision course with major producers Malaysia and Indonesia.

The EU plans to increase its use of renewable energy sources by 2030 and to take into account deforestation when it determines what can be labeled renewable.

In Jakarta, a trade ministry official confirmed there were some delays in granting import licenses for spirits from Europe.

But Karyanto Suprih, the ministry’s secretary general, denied that it was in retaliation for the EU plan to phase out palm oil use in renewable fuels.

“This is just about market preference. It seems like the market wants spirits from America,” Suprih said on Friday.

Indonesia, which has said it would file a World Trade Organization complaint against the EU over the palm oil issue, has threatened to quit the Paris climate accord and said it was examining relations with EU members.

Malaysia’s prime minister told Reuters last week that the EU was risking a trade war over palm oil.

The European Commission said it was checking the situation on the ground and looking into possible additional measures applied to imports of alcohol from the EU. — Reuters

Russian firm inks P30-billion fertilizer supply deal with PPI

VIGOROUS Alliance, a Dubai-based Russian-owned company, signed a P30-billion fertilizer supply agreement with Planters Products, Inc (PPI), according to Agriculture Secretary Emmanuel F. Piñol.

PPI is a private corporation supervised by the Philippine Department of Agriculture (DA), and whose shares are owned by Filipino farmers.

“Under the agreement signed in Manila Thursday, Vigorous Alliance will supply fertilizer needed by Filipino rice farmers every planting season amounting to P30 billion,” Mr. Piñol said in a social media post over the weekend.

“The fertilizer will be loaned out by PPI to rice farmers at the start of the planting season payable after harvest,” he said,

According to Mr. Piñol, the loan which will start in October and will have no interest or service fees. He added the fertilizer price will be lower than the prevailing market price.

“Since there is no available government funds for the (fertilizer-on-credit) program this year, the DA worked on the arrangement between Vigorous Alliance and PPI,” he added.

The government’s National Fertilizer Support Program aims to provide nine bags of fertilizer for every hectare of land. — Reicelene Joy N. Ignacio

Melissa and Fila partner up for vintage style collaboration

BRAZILIAN footwear brand, Melissa has brought to the Philippines its limited edition collection done in collaboration with Italian sporting goods brand, Fila, making it the first Melissa collection geared towards the currently popular “athleisure” trend.

“I think this is the first time Melissa has partnered with a brand known for its sportswear. So it’s the first time Melissa has come out with such sporty styles,” Joanna Co, managing director of Tykes Trading, Inc., the official distributor of Melissa in the Philippines, told BusinessWorld during the launch on April 4 at the Melissa store in SM Megamall in Mandaluyong City.

The collection which is said to “spotlight contemporary street style and athletic spirit,” according to a press release, features the DNAs of the two brands: Melissa’s jelly shoes and Fila’s classic sporty silhouettes which NYLON magazine called “grandpa sneakers” in a March article announcing the collection launch in the US.

While this is the first time Melissa has partnered with Fila, this is but one of the numerous collaborations the footwear brand has done throughout the years — previous collaborators included Sanrio and Vivienne Westwood.

There are four styles to choose from in the collection, each of which takes inspiration from the 1980s and the ’90s. These are the chunky high platform Melissa Sandal+Fila (P4,999) with a jagged sole and two thick double-lock Velco straps; a “modernized take” on one of Melissa’s most popular products, the Melissa Slide+Fila (P3,999) features the collaboration’s logo on the upper as a tribute to Fila’s Borg logo from the 1970s. The collaboration also offers the Melissa Sneaker+Fila (P4,999) which features Fila’s signature palette of navy, red, and white contrasted against a solid-colored base of white, gray or charcoal, and a fanny pack called the Melissa Pochete+Fila (P3,999), an accessory said to be made for “the street-savvy, ready-for-anything go-getter.”

“This is not the type of footwear you’d wear for running, it’s a lifestyle pair but if you want to achieve a sporty look, this is one of the pairs you can use,” Ms. Co said.

Each style is available in multiple colorways and is currently available in all Melissa stores nationwide and online via www.melissaphilippines.com. — Zsarlene B. Chua

Peso to weaken vs dollar

THE PESO is expected to weaken versus the dollar today following the better-than-expected jobs report in the United States.

On Friday, the peso ended the week at P52.10 against the greenback, up eight centavos than Thursday’s P52.18, driven by dovish cues from the Bangko Sentral ng Pilipinas despite a slower-than-expected March inflation print.

Week on week, the peso also strengthened from the P52.50 finish last March 29.

In an e-mail, a market analyst said the dollar will likely bounce back against the local currency on Monday after the US economy added more jobs than expected in March.

The US job market expanded by 196,000 in March, the Bureau of Labor Statistics reported.

On the other hand, the unemployment rate was steady last month at 3.8%, sitting below the 5% upper threshold considered as strong by the US Federal Reserve.

“The dollar’s appreciation due to these relatively strong US labor reports might be amplified by safe-haven buying amid lingering concerns on Brexit and the US-China trade talks,” the market analyst added.

Meanwhile, Rizal Commercial Banking Corp. economist Michael L. Ricafort said there might be “some upward correction” for the dollar-peso to the P52.20-per-greenback levels “after stronger US jobs data and possible monetary easing after lower-than-expected inflation.”

Inflation stood at 3.3% in March, the Philippine Statistics Authority reported on Friday, easing for the fifth straight month and near the lower end of the 3.1-3.9% forecast range of the central bank.

The Bangko Sentral ng Pilipinas hinted that any cut on local policy rates or reserve requirements may not be immediate, Mr. Ricafort said, as monetary easing will only be considered if inflation goes down further to 3%.

The market analyst expects the peso to trade between P51.90 and P52.60 this week, while Mr. Ricafort said the peso could range from P51.80-P52.20 today.

Meanwhile, the Department of Finance said the local unit tracked its Southeast Asian peers in gaining strength versus the US dollar for the first quarter.

Year-to-date, the peso appreciated by a modest 0.01%.

“While the outlook for the peso remains tilted towards the downside (owing to a growing current account deficit, which, in turn, is on account of increased importation of capital goods), the country’s external stance remains generally strong,” the Finance department said in an economic bulletin.

The generally strong stance of the country against headwinds offshore was attributed to ample buffers as well as trimmed exposure to external debt. — Karl Angelo N. Vidal

5 standouts at the 15th MIAS

By Kap Maceda Aguila

THE MANILA International Auto Show (MIAS) is a well-known summer draw and, rightfully so, becomes an effective soapbox from which car brands announce and tout their accomplishments. It is also a favorite platform for unveiling vehicles. This year’s MIAS featured a handful of attention-grabbing rides worth saving up for (or at least salivating over). We compile here a handful (in no particular order) which we thought you probably noticed as well. Do you agree?

MIAS Standouts 1

CHEVROLET CAMARO
Bumblebee is back. The new iteration of one of America’s iconic muscle cars elbowed its way back into the country through the MIAS. The storied nameplate has sold an excess of five million units since its debut in 1967, capturing the imagination of car lovers all over the world. Rumbling under the hood is a 2.0-liter DOHC VVT direct-injection turbo good for 275hp and 398Nm, and drivers can access the aggression through an eight-speed AT with paddle shifters. Worthy of the robust performance, the Camaro receives Brembo brakes with four-piston calipers for enhanced stopping power.

Bearing LED headlamps, heritage-inspired taillamps, and muscular flanks, the Camaro is also complemented with the RS package for added sportiness. It wears five-spoke 20-inch machined wheels, LED tail lamps, decklid spoiler, polished honeycomb grille, illuminated Camaro sill plates, RS badge, and black front and rear Chevrolet bowtie emblems.

The sixth-generation vehicle features a leather-wrapped flat-bottom steering wheel, black leather interior panel, and custom leather-trimmed dashboard and console. The driver’s bucket seat has eight-way power adjustment and is ventilated with both cooling and heating, while the passenger bucket seat features six-way power adjustment with cooling and heating as well.

MIAS Standouts 2

HYUNDAI PALISADE
There’s a new alpha-dog SUV at Hyundai. The Palisade, badged as a 2020 model, comes just four months after its global debut at the Los Angeles Motor Show. Motivating the burly vehicle is a 2.2-liter CRDi e-VGT GLS engine mated to an eight-speed automatic transmission. The hefty yet elegant-looking ute wields 197 horses, with the grunt expressed through Hyundai’s HTRAC all-wheel-drive system for driving stability with variable power delivery to the rear wheels to optimize traction over different surfaces.

A large hood and eye-catching, cascading mesh-type grille underscore the image of strength and luxury. Rear cargo room is a spacious 509 liters. Luxurious accoutrements within the seven-seater (including second-row captain seats) abound — such as fully automated, multi-zone air-conditioning, seven USB ports (including a multimedia terminal), and a powerful audio system hooked up to six speakers.

MIAS Standouts 3

KIA STINGER
The secret’s out. Kia Philippines continues to increase its presence in the market releasing a duo of famous nameplates: the Forte and the Stinger. The Stinger is the “visionary product of the Kia GT Concept,” a compact executive five-door fastback touting muscular form and robust performance. Powered by a 3.3-liter V6 twin-turbocharged gasoline engine direct-injection dual CVVT which serves up 365hp and 510Nm (from a low 1,300-4,500rpm), acceleration is sprightly, as it attains 100kph from standstill in 4.9 seconds. Top speed is at 270kph.

Driving it are the rear wheels, and the driver accesses the power through an eight-speed automatic transmission. The Stinger sports a MacPherson strut and stabilizer front suspension and a five multi-link at the rear. Electronically controlled dynamic suspension is integrated with Drive Mode Select, which adjusts steering boost, shift points, throttle and suspension mapping. A Dynamic Torque Vectoring system comes standard. Braking is powered by a four-piston Brembo caliper disc fitted on all wheels.

MIAS Standouts 4

JEEP COMPASS
Situated below the Cherokee and above the Renegade in Jeep’s trail-worthy portfolio, the new Compass expands the local portfolio of Jeep with “an unmatched combination of attributes that includes legendary and best-in-class 4×4 off-road capability, advanced fuel-efficient powertrains, premium and authentic Jeep design, superior on-road driving dynamics, and a host of innovative safety and advanced technology offerings.” It’s expected to be another contender for people on the lookout for a unique sport utility vehicle.

Jeep’s trademark seven-slot grille is reinterpreted elegantly on the Compass, which boasts half-hexagon arches and an upward-tapering D-post for added dynamism. Jeep also describes the outside as “expressive and emotional with a wide stance and exceptional glass-to-wheel proportions.” Engineered as a single unit are the upper body and frame, resulting in greater stiffness and mass efficiency. “Extensive use of high-strength steel and… structural adhesives” further distinguish it. To be sure, there are styling cues borrowed from its more capable big brother in the Grand Cherokee, even as it shares a platform with the Renegade.

Inside, the Jeep Compass reflects decidedly premium styling “highlighted by sculptural surface elements and precise technical detail,” all adding up to a consistent Jeep experience. The company makes mention of multiple storage solutions throughout the cabin, along with colors and textures to “complement a lifestyle of adventure.”

MIAS Standouts 5

MG 6
Morris Garages (MG) continues its local onslaught with the 2019 MG 6 fastback sedan — a good-looking yet affordable sedan equipped with an expectedly frugal 1.5-liter, turbocharged gas engine promising 164hp and 250Nm. It is equipped with a seven-speed TST with manual Tiptronic function, and boasts a well-designed and appointed interior. A seven-inch virtual instrument cluster sits between the analog speedo and tachometer, while a large eight-inch LCD infotainment display system on the center console has Apple CarPlay and highlights hands-free connectivity.

It leverages MG’s sporty heritage in various ways, including a flat-bottomed steering wheel with multi-function controls. Two variants, Alpha and Trophy, are available.

Porsche Cayenne: The sports car when size (and space) matters

By Manny N. de los Reyes

I WASN’T a big fan of the Porsche Cayenne when it made its global debut in 2002. Sure, it had the celebrated Porsche build quality, luxury, exclusivity, and of course, performance. But what I felt it lacked, at least for its first generation, was the vaunted Porsche styling. Sure, it had Porsche styling cues, but it was a distant departure from the timelessly graceful lines of the 911.

Fast-forward 16 years, and the all-new third-generation Cayenne is faster, nimbler, safer, and more luxurious than ever. And finally, it’s visually sportier than ever. This is arguably the first Cayenne that bears the unmistakable cues of Porsche’s design DNA. Porsche’s large yet sleek new flagship SUV is 63mm longer and 48mm wider than its predecessor. The luggage compartment volume is now 770 liters (an increase of 100 liters). And for the first time ever, the new Cayenne features staggered tire sizes (wider in the rear), just like its 911, Boxster and Cayman siblings. The distinctive Porsche logo spans the redesigned rear lights with three-dimensional design and full-width narrow LED strips.

The exterior of the new Cayenne and its interior chassis components and floorplan assembly are made with a high-tech mix of aluminum and steel. One particular technical highlight is the innovative lithium-ion polymer starter battery, which alone accounts for a weight saving of 10kg over the old battery. Overall, the newest Cayenne weighs 65kg less than its predecessor.

The latest Cayenne also offers a significantly heightened performance due to the new eight-speed Tiptronic S gearbox. Programmed on-road and off-road modes make it easy for the driver to select the right setup for the drive. The new Cayenne also combines three cool chassis concepts in one new design: sports car, off-roader and touring car. Even on rough terrain, the Cayenne promises a superb driving experience.

Also for the first time, the Cayenne offers optional rear-wheel steering. The system, tried and tested both in the 911 and the Panamera, improves agility on bends at low speeds and stability when changing lanes at high speeds. The reduced turning circle rear-wheel steering makes maneuvering through tight spaces a piece of cake.

Inside, the latest Porsche Advanced Cockpit is fully integrated into the sporty, luxurious cabin of the Cayenne. At the heart of Porsche’s new display and control concept is the 12.3-inch full-HD touchscreen from the latest generation of Porsche Communication Management (PCM).

A range of digital functions can be operated intuitively — including voice control. The analog controls on the new center console are focused on the main functions of the vehicle. Other buttons are harmoniously integrated into the smartphone-like, glass-look touch surface, giving acoustic and haptic feedback when operated. Typical of any Porsche, the instrument panel has a central analog tachometer. This is flanked by two 7-inch full-HD displays, which feature all other relevant driving data and additional information selected using the multi-function steering wheel.

The new Cayenne comes with a choice of three powertrains: a 3-liter turbocharged V6 for the base model; the mid-range Cayenne S with a 2.9-liter twin-turbo V6; and the range-topping Cayenne Turbo with a 4-liter twin-turbo V8. The midrange Cayenne S delivers 440hp and 550Nm. It accelerates from 0 to 100 km/h in just 5.2 seconds and hits a maximum speed of 265 km/h. The Cayenne Turbo, on the other hand, brings 550hp and torque of 770Nm, accelerating from 0 to 100 km/h in a mere 4.1 seconds.

I got to test the base Cayenne, which delivers 340hp and 450Nm of torque. Porsche claims that it can accelerate from 0 to 100 km/h in 6.2 seconds and reach a top speed of 245 km/h — 1.1 second and 16 km/h faster than its predecessor. Flooring the accelerator and feeling more than two tons of metal, glass, and leather hurtle forward with an otherwordly urgency will make you instantly forget that you’re driving the base model — and wonder just how incredible the flagship Turbo would feel. All of a sudden, you’re in a close-coupled sports car aiming for apexes with millimetric precision and enjoying the scintillating push in your back from the breathtaking acceleration — until you look at the rear-view mirror and see your kids at the back. That’s a sight you won’t see in any sports car.

With a lightweight aluminum chassis, powerful drivetrains, sensational driving dynamics, and a full suite of smart driver assistance systems, the latest Cayenne is closer than ever to becoming a Porsche sports car — one that can carry five and even go off road.

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