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Expectations of better earnings this year make Megawide an attractive stock — analysts

Megawide logo
MEGAWIDE CONSTRUCTION Corp. was one of the most actively traded stocks in the Philippine Stock Exchange last week on account of the attractiveness of the company’s future growth prospects according to analysts.
A total of 38.48 million shares worth P763.98 million exchanged hands on the trading floor from Feb. 26 to March 1, data from the Philippine Stock Exchange showed.
Megawide shares closed at P19.48 apiece on Friday, down 2.6% from the previous day. On a week-on-week basis, the stock price is up 3.1%. Year to date, it is up 7.2%.
“Megawide’s disclosures on its future projects this past few weeks were good news,” said A&A Securities, Inc.’s trader Jeng T. Calma.
UPCC Securities Corp. equity trader Aristotle D. Reyes, Jr. was of a similar assessment. In particular, he cited the news that mass housing developer 8990 Holdings, Inc. tapped Megawide to build its horizontal housing project in Meycauyan, Bulacan.
“[This is] a good addition to the construction segment of Megawide, which saw a slowdown [in revenues] last year due to delays in permits and contracts. So I expect a good pick up this year as the delayed projects last year will start this year. So for investors, this is quite an assurance that the good earnings will continue and sustainable,” Mr. Reyes said.Last Wednesday, Megawide signed a memorandum of agreement with 8990 Holdings to construct about 5,000 townhouses in the latter’s 41-hectare Deca Homes Meycauayan in Barangay Saluysoy, Bulacan.
On Feb. 22, the engineering and infrastructure conglomerate signed a similar deal with PHirst Park Homes, Inc. for the use of the former’s precast technology to build more than 1,800 homes in Lipa, Batangas.
Although the stock’s price dropped last Friday, A&A Securities’ Ms. Calma said that it was only a technical matter. “Since it was on an uptrend for how many days, some investors who bought at a lower price were profit taking,” she said.
A&A’s Ms. Calma said that Megawide is a good buy in the long term, pointing to the company’s share buyback program in addition to its future projects inked this year and last year.
For UPCC’s Mr. Reyes, Megawide has a “very promising” growth, citing its Cebu airport and Parañaque terminal projects, as well as potential projects from the government.
“The company is doing a very good job in its Mactan, Cebu airport which continues to surpass target tourist arrivals that resulted to more than expected earnings growth. Different business groups and the government lauded Megawide for its hard work to market Cebu to tourists around the world. Recently they added new direct flight routes to China and other countries, which will result in more tourist arrivals in the province,” he said, referring to the Mactan-Cebu International Airport (MCI), which is operated by Megawide’s joint venture with GMR Infrastructure, Ltd.
Mr. Reyes also mentioned that three out of four of its towers at the Parañaque Integrated Terminal Exchange (PITX) has already been leased out.
PITX, a P2.5-billion terminal built by Megawide’s subsidiary MWM Terminals, Inc., opened early November last year. The terminal is expected to receive an average foot traffic of 100,000 a day but is expendable to 200,000 passengers daily.
“This will give Megawide huge recurring income which makes the income more stable, less cyclical,” he said. “For the construction segment, we project it will pick up especially that the government is starting to roll out major infrastructure projects that will spur growth for infrastructure/construction industry.”
Mr. Reyes also noted that the stock has consistently benefited from foreign buying since Feb. 18.
“Megawide has been actively traded because of foreign funds… This means foreign investors sees a lot of potential in the company,” said Mr. Reyes.
Megawide’s net income attributable to parent fell by four percent to P1.32 billion in the first nine months of 2018 compared to P1.38 billion in the same period in 2017.
Revenues dropped by 11% to P12.746 billion, weighed down by the 17% decline in revenues from the construction segment. Revenues from airport operations jumped 26% to P2.180 billion, as the MCIA saw double-digit growth in passenger volume.
For this week, A&A’s Ms. Calma has placed Megawide’s strong support at P18 per share while resistance at P19 per share.
“Support and resistance will be P19 per share and P20.50 per share, respectively,” UPCC’s Mr. Reyes said. — Carmina Angelica V. Olano

Rice farmers seek assurances of funding under new law

DAVAO CITY — The Department of Agriculture (DA) will ensure that the rice industry will become more competitive as the Rice Tariffication Law comes into force.
In a public consultation Thursday on the proposed implementing rules and regulations of the new law, Agriculture Secretary Emmanuel F. Piñol said he is confident that rice farmers will be able to increase their production with the assistance that the law will provide.
Under Republic Act 11203, the government will set aside P10 billion a year for six years to help farmers increase their productivity. The goal of the law is to make prices of domestic rice competitive with imports.
The funding, which will be assessed after three years of implementation. The Rice Competitiveness Enhancement Fund (RCEF), as it is called, will be financed from tariffs on imported rice, which will be shipped in more freely under the law.
Mr. Piñol said that with the continued improvement of rice production as new rice varieties develop, rice farmers will eventually be able to compete with the rest of the world.
On the part of rice farmers, Balbino A. Alingalan told BusinessWorld that the government must, among others, help rice farmers organize themselves to better access funds from government.
Mr. Alingalan, president of the Davao Oriental Seed Producers Cooperative, said that many of the farmers are not organized, “so it is difficult for them to secure assistance from government.”
He said that even those who are organized like his group have even found it hard to access funding as requirements are stringent.
He said most farmers turn to informal lenders who provide immediate cash at high interest, “because we always need the money right away.”
“If you run to formal lenders, even those in government, it is very difficult for you to borrow because they always ask for so many requirements,” he said.
Mr. Piñol said the current pressure on rice prices is due to speculation that prices will fall, “borne out of fear by traders and millers that we will be flooded with imported rice from major rice exporting countries,” he said.
He said the DA, as mandated by the law, will ensure that all importers are registered and issued Sanitary and Phytosanitary Import Clearances (SPSIC).
He said the DA still ha the power to oversee imports and ensure that everyone follows the law.
Rice shipments sourced from the Association of Southeast Asian Nations will be charged a 35% tariff, while those coming from other countries will be levied as much as 180%. — Carmelito Q. Francisco

PAL allocates $650 million for capex

FLAG CARRIER Philippine Airlines (PAL) is allocating around $650 million for capital expenditures this year, as it plans to purchase six aircraft.
“More or less $650 million,” PAL President and Chief Operating Officer Jaime J. Bautista said when asked about the company’s capex for 2019. In 2018, PAL allocated $2 billion in capex to acquire 15 aircraft.
Mr. Bautista said the company is taking delivery of six new aircraft this year.
“Two Airbus 350, the one that already arrived last week, the next one will be in April. That will complete our order for Airbus 350. And then two more Airbus 321neo… The other two in the third quarter this year, A321ceo,” he said.
He noted the long-haul A321neo can be used to fly to Sydney, Sapporo, and Port Moresby.
Mr. Bautista said PAL intends to retire some of its aircraft, which are currently used as back-up in case the regular planes have technical difficulties.
“We will also retire (nine) Bomardier Q400,” he said. “We have 10 brand-new Q400 Generation and there are instances that there are technical problems. We’re using these [old] airplanes only as back up…We use these only if there are no options but we’re planning to sell these also and there are interested buyers,” he said.
Last month, ANA Holdings, Inc., parent of Japan’s biggest airline All Nippon Airways, acquired a minority stake in PAL Holdings, Inc. for $95 million (around P5 billion).
For the first nine months of 2018, PAL Holdings reduced its attributable net loss by 8% to P3.921 billion from P4.263 billion in the same period last year.
While its nine-month revenues rose 16% at P112.07 billion, PAL saw its expenses jump 17% to P115.30 billion due to higher jet fuel prices. — RJNI

China pork producers surge as swine disease cuts down on supply

BEIJING — Shares in China’s leading pig producers have soared to record levels despite one of the worst disease outbreaks in years, as investors bet on tightening pork supplies and strong government support for leading producers.
China is battling the world’s fastest spreading outbreak of African swine fever, an incurable pig disease that has been confirmed in 28 of its provinces and regions.
Livestock shares initially slid on the early outbreaks in August and September. But they have climbed since November, even as outbreaks continued and as transport curbs on infected provinces hit prices and hurt profits at most producers.
Shares in Muyuan Foods Co Ltd, the No. 2 producer, have doubled in the past six months. No. 4 producer Jiangxi Zhengbang Technology Co has surged more than 200 percent, while rapidly growing Tech-bank Food Co Ltd is up 143 percent.
While listed companies still account for only a modest proportion of China’s annual production of 700 million pigs, they are growing quickly as Beijing promotes modern farm techniques. Muyuan produced 11 million pigs last year.
The share price gains come even as most companies have forecast a plunge in earnings for last year. In a preliminary report, Muyuan said its 2018 net profit slid 78 percent to 520.2 million yuan ($77.7 million), after prices fell partly because of African swine fever.
But analysts say prices for live pigs have bottomed and could rise from 12 yuan per kilogram currently to as much as 20 yuan in the second half, as supplies plunge and farmers face challenges in restocking farms.
“Prices could rise quite high, quite quickly,” said Xiong Kuan, analyst at Cofco Futures, who expects a 20 percent drop in supplies. Others say it could be as much as 30 percent.
Large players with low-cost modern farms that are better able to resist disease are expected to reap good profits.
They will also win support from the government, already worried about supply. China eats half the world’s pork, by far the country’s most popular meat, but much of the production comes from millions of small farmers whose farms have been most at risk of disease.
“The government sees very clearly, among all the cases of African swine fever, less than 20 percent took place on big farms. They are encouraging big farms with good biosecurity measures to expand production,” said Feng Yonghui, chief analyst at Soozhu.com.
Last month the agriculture ministry urged farmers to quickly replenish their herds as concerns grew that prices will rise rapidly in the second half of the year.
And last week, Beijing issued a draft plan aimed at tackling the disease and shoring up supplies. It called for the promotion of high-quality farming companies in southern areas that need to increase supplies and support for large-scale integrated processors across the country.
Many big companies have continued to expand, eyeing future bumper profits. Top 10 producer New Hope Liuhe produced 2.5 million pigs in 2018, up 50 percent on the prior year.
Muyuan raised 5 billion yuan in a share placement in December to add new farms for 4.8 million pigs.
The expansion would help provide the market with stable supplies and allow the company to “firmly grasp the opportunities from market transformation,” it said. — Reuters

Spring/Summer style

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Uniqlo’s Ines de La Fressange collaboration is inspired by the style icon’s childhood in Saint-Tropez.

THE high-powered activities of spring and summer, signaling delight and freedom, are highlighted in the 2019 Spring/Summer collection of Japanese brand Uniqlo.
Highlights include the 11th collaboration of the brand with timeless beauty Ines de La Fressange, a famous face from the 1970s and beyond, who also happens to be an aristocrat (her father is descended from a marquis), and since 1998, has belonged to the International Best Dressed List Hall of Fame. With this collaboration, Uniqlo shoppers can channel her glamorous childhood in Saint-Tropez, the resort town of the rich and famous in France. Palettes are expressed in indigo and caramel, and soft lines and light fabrics like chambray are used to heighten the resort feel.
Meanwhile, Uniqlo’s third collaboration with British fashion brand JW Anderson was also highlighted during a presentation at Uniqlo’s Philippine flagship store in Glorietta last week. This collection highlights nautical themes and Anglophilia, showing striped patterns and jackets that will come in handy during a yacht party.
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Nautical themes and Anglophilia — think stripes and paisley — are the focus of JW Anderson’s latest collaboration with Uniqlo.

The relationship of the two collections reflect the proximity of the two cultures and nations separated by the English Channel, showing a cosmopolitan feel. “We are continuously working with iconic designers because we want to bring something special to our customers,” said Camille Pacis, senior marketing and PR manager for Uniqlo Philippines.
As for utility, Uniqlo has revamped its AIRism line with new technologies, namely, a micro-polyester fiber for the men’s line that helps dry the skin from perspiration, while a women’s line uses a fabric called Cupra, designed to adjust to different temperatures. The women’s line also includes long-sleeved tops with UV protection, the better to enjoy your days under the sun.
Speaking of enjoying, Uniqlo also released a new line of wireless bras designed to be light, with cups acting like memory foam to mold more easily on busts.
As well, Uniqlo highlighted its sustainability and corporate social responsibility efforts. Ms. Pacis told BusinessWorld that the company has opened a school building with two classrooms in Albay, currently used by about 100 kindergarteners. Chloe Cruz, sustainability and PR manager for Uniqlo, meanwhile, said that they continue to collect clothes in bins located in Uniqlo stores nationwide. The donations are forwarded to the needy in areas such as Iloilo, Marawi, and Tacloban, with Ms. Cruz recalling that last December, they donated about 1,000 pieces of clothing to the needy in Cebu. — Joseph L. Garcia

T-bill rates to end mixed ahead of RTB offer’s end

RATES OF Treasury bills (T-bill) on offer today will likely end mixed as market players await the final result of the retail Treasury bond (RTB) sale.
The Bureau of the Treasury (BTr) is offering P20 billion worth of T-bills on Monday, broken down into P6 billion each for the three- and six-month papers and another P8 billion for the one-year instruments.
A trader said rates of the T-bills on offer will likely move sideways or 10 basis points (bp) higher from the previous auction.
The government made a partial award of the T-bills it offered last Feb. 18, borrowing only P15.598 billion out of tenders totalling P28.862 billion. Yields picked up across all tenors, with the 91-, 182- and 364-day papers fetching rates of 5.733%, 5.978% and 6.052%, respectively.
Meanwhile, at the secondary market on Friday, the three-month, six-month, and one-year papers fetched yields of 5.57%, 5.888%, and 6.06%, according to the PHP Bloomberg Valuation Service Reference Rates as of March 1 published on the Philippine Dealing System’s website.
“I’m expecting sideways movement to 10 bps higher. Nothing much happening since everyone is waiting for the RTB results,” the trader said.
The government is offering RTBs to the general investing public, which can be bought in denominations of P5,000 until March 6.
The five-year bonds carry a coupon of 6.25% and will mature in 2024. The instruments can be bought through 21 authorized financial institutions, as well as online through Land Bank of the Philippines and Development Bank of the Philippines.
National Treasurer Rosalia V. De Leon said demand for the RTBs could reach as high as P200 billion by the end of the public offer period, although the government may not accept all the bids.
The trader added that demand for the T-bills may be captured by the ongoing RTB sale.
“That’s why we are expecting yields to go higher,” the trader said, adding that investors are also looking ahead to the domestic inflation data to be released tomorrow.
Inflation may have eased further in February on the back of lower costs of food, particularly rice. A BusinessWorld poll of 13 economists yielded a 4.1% median estimate, slower than the actual 4.4% print in January.
However, another trader said the rates of the T-bills may move sideways or five basis points lower from the previous offer due to pent-up demand for the short-term securities.
“The demand will be driven by the maturities. Every week, there are maturing T-bills. Given that the auctions were suspended [last] week, there will be pent-up demand for the next auction,” the other trader said.
For this quarter, the government is planning to borrow P360 billion from the domestic market. Some P240 billion will be borrowed this quarter through 12 weekly T-bill auctions. On the other hand, P120 billion worth of T-bonds will also be issued through six fortnightly auctions. — Karl Angelo N. Vidal

J&T Express ramps up expansion

EXPRESS delivery company PH Global Jet Express Inc. (J&T Express Philippines) is targeting to have 1,000 branches in the Philippines by 2021.
Established in 2015, J&T Express operates in Indonesia, Vietnam, Malaysia, the Philippines, and soon in Thailand.

J&T Express Philippines currently has 254 branches in nine regions in the Philippines. Ms. Chi said the company operates throughout the year, including weekends and holidays.
The company is looking to take advantage of the growing e-commerce industry in the Philippines, in particular, targeting small and medium enterprises.
“If we can support the small sellers it will be very helpful for their family. That’s why we want to support more of the small sellers, the small businesses,” Ms. Chi said.
Established in Hong Kong in 2015, J&T Express operates in Indonesia, Vietnam, Malaysia, the Philippines, and soon in Thailand.
In the Philippines, it has partnered with online platforms such as Shopee, Lazada, Zalora and Akulaku. — V.M.P.Galang

Rice farm equipment faces delays due to budget, procurement issues

MECHANIZATION of rice farms in the country will begin next year as the Philippine Center for Postharvest Development and Mechanization (PHilMech) can only begin procurement once it receives its budget, an official said.
“Late this year or early next year,” Raul R. Paz, PHilMech Deputy Director, told reporters in a briefing in Quezon City on Friday, when asked when farm machinery will be delivered to the farmers.
“Our reckoning actually is when the budget will be released,” Mr. Paz said, adding that “we’re now starting with validating the lists of farmers in the municipalities.”
According to Mr. Paz, procurement will start in August, with the bidding process expected to “take a while.”
The equipment include transplanters and four-wheeled tractors, to be sourced from domestic manufacturers.
Mr. Paz also said PHilMech needs more funding to expand its manpower and do the work expected of it under the Rice Tariffication Law.
“As soon as the [funding] is released, we will be hiring,” Mr. Paz said.
Mechanization will cover 57 rice-producing provinces which are deemed priority areas.
The Department of Budget and Management (DBM) said that it has released P5 billion for the rice industry development program of the government, with Mr. Paz saying none of this went to PHilMech. — Reicelene Joy N. Ignacio

It took a former Tesla executive to blow up luxury fashion

IT’S 9 p.m. on a Thursday, and the night shift just started working at a studio space in lower Manhattan. Fashion photographers scurry about, shooting looks that just days earlier were draped over top models strutting the catwalk at New York Fashion Week.
In this studio, however, the models — some outfitted with Jason Wu pinstripe dresses and black tulle outfits from Red Valentino — are mannequins. They represent a radically different way to sell fashion in America and, soon, around the world — a shift led by a company that’s raised almost $300 million and is now run by a former Tesla, Inc. executive.
For the uninitiated, the relationship between haute couture and that sweater you bought at Bergdorf Goodman is opaque at best. Designers create their collections to display at fashion shows, the biggest being in February and September. Huge clothing retailers and boutiques were once the gatekeepers, sending their minions (the ones sitting behind the celebrities) to pick what they think will sell best. They served as curators, choosing clothing that, in six months, would hang from store racks. They also decided which items would never be seen again.
But not anymore. Moda Operandi enables clothes-crazed shoppers to buy directly from a designer’s complete runway collection, not just the ones picked by Saks Fifth Avenue, Barneys New York, or any other retailer for that matter. Through special arrangement with fashion houses, Moda can get you any look that appeared on the runway, allowing you to preorder before it’s made in a factory.
For those wowed by a $4,500 lace dress from Zimmermann or a pair of $1,300 Proenza Schouler mules that just hit the runway, Moda’s website offers you the opportunity to be seriously fashion-forward. As of now, the site carries more than 1,000 different labels, a mix of well-known fashion houses and upstart designers. Some of its biggest brands include Givenchy, Versace, Ralph Lauren, Prada, and Oscar de la Renta.
Ordering on Moda requires shoppers to put down a deposit, since the item is being made just for them. Depending on the label, it can also take months for it to arrive, so it’s not always that quick. And the offers don’t last forever — each collection disappears from Moda’s website after four to six weeks.
And now the company faces competition. There’s a growing push by fashion labels to sell their own items right after runway shows — what the industry calls “see now, buy now.” It’s a strategy that’s been adopted by major labels such as Burberry, Moschino, Tommy Hilfiger and Ralph Lauren. It provides them with a way to sell some of their own clothes immediately without waiting for a nod from retailers.

Carolina Herrera dress
A Carolina Herrera dress that can be ordered on the site.

In a quest for growth, Moda decided it needed to expand its horizons.
That’s where Ganesh Srivats came in. At Tesla, Chief Executive Officer Elon Musk assigned the then-vice-president of sales the job of launching the Model X SUV and the Model 3 sedan. Now at Moda, Srivats said his goal is to collect customer data while expanding the company’s reach into one of the most lucrative luxury markets: China.
Mr. Srivats, 42, is the latest of a growing number of Silicon Valley expats who decamped for the fashion industry. Two more Tesla executives joined him — Puja Clarke, who ran global merchandise and e-commerce, and consumer communications director Alexandra Valasek. More recently, Jet.com executive Preston Bottomy came aboard to run Moda’s corporate strategy. Also hired were Kristina Salen, the former finance chief of Etsy; Josh Peskowitz, from Bloomingdale’s; and Lisa Aiken, from Net-a-Porter.
Mr. Srivats’s new post isn’t his first in the style game. Before getting into the electric car business, he spent a decade at Burberry, the British luxury fashion label best known for its $2,000 trench coats and check patterns. His mission now merges both threads of his professional background. By analyzing real-time data to predict which looks will trend months later, Mr. Srivats said, he hopes to provide retailers with critical information while their production window is still open. When a line of alligator handbags hits the runway, how would a traditional retailer know which colors are going to be best-sellers? They don’t — they have to guess.
“What are people going to like, pink or green? Who the hell knows,” said Srivats. Here’s the thing: Moda knows. It crunches the data from its orders to help identify hot items before they’re actually hot, let alone being made in the factory. “We would love to be the merchandiser for the high-fashion industry and help them reshape their inventory bets.”
Armed with almost $300 million in venture capital, Moda has around 300 employees and is looking to grow. The last round, in late 2017, was a $165 million injection led by investor Apax Digital. (Moda, which said it’s not seeking additional funding right now, declined to share revenue figures.)
Thanks to Mr. Srivats, Moda Operandi may be having its moment, but it’s been around for a while. The company was started in 2010 by Lauren Santo Domingo and Aslaug Magnusdottir with a simple goal: instant fashionista gratification.
“They see what’s coming out on the runway, but they know they can’t actually buy it, and they won’t even know for four to six months what’s actually coming to their local store,” Mr. Srivats said. “That’s huge asymmetry.”
Since Moda arrived, the modern fashion show has morphed into a theatrical marketing device rather than a true sales event. Nowadays, everyone knows what designers are making the minute the clothes appear on the runway. Attendees share photos and videos on Instagram, and glossy magazines like Vogue and Elle post every single look.
That dynamic created an opening for Moda. In years past, even the most fashion-obsessed weren’t able to see designers’ collections until they appeared in print. Now they can browse through all the looks instantly and, thanks to Moda, buy it right now.
“We want to be able to take the entirety of high-fashion content and present it to customers without editing it, and we want to let them decide what appeals to them,” said Mr. Srivats. “It allows for more quirky and eccentric and interesting tastes to come up.”
Mr. Srivats plans to enter China with a website suited to a domestic shopper there. The Chinese market has become vital to the luxury industry, both through tourist spending and local shopping. Moda is looking to launch in the summer or fall of this year.
International growth, Srivats said, is “a big part of the agenda.” — Bloomberg

Yields on gov’t securities up slightly on retail bonds

YIELDS ON government securities (GS) went up slightly following the auction of retail Treasury bonds (RTB), the release of the US gross domestic product (GDP) growth report, and expectations of within-target domestic inflation.
On average, debt yields — which move opposite to prices — increased by 0.34 basis point (bp) week on week, the PHP Bloomberg Valuation Service Reference Rates as of March 1 published on the Philippine Dealing System’s website showed.
Nicholas Antonio T. Mapa, senior economist at ING Bank NV-Manila Branch, said in an email that the market reacted “to the retail Treasury bond issuance as well as to Bangko Sentral ng Pilipinas (BSP) inflation forecast showing February inflation could slide back within target.”
Deanno J. Basas, president and managing director of ATR Asset Management (ATRAM) Trust Corp., shared the same view, and attributed the slight increase in yields to “the pricing of the new five-year RTB, at 6.25%.”
Last week, the Bureau of Treasury raised a total of P113.8 billion from the rate-setting auction of the new five-year RTBs at a coupon of 6.25% following “strong market demand.”
Total tenders for the government’s first offering of RTBs in 2019 reached P121.8 billion, which caused the state to upsize its award from the initial P30-billion program “to take advantage of the favourable rate and healthy market appetite.”
The RTBs are available to the public between Feb. 26 and March 8 at minimum denominations of P5,000. Proceeds from the issuance will go to health services, educational programs, and public infrastructure.
Meanwhile, the government has kept its 2-4% annual inflation target until 2022, according to a Friday statement from the Bangko Sentral ng Pilipinas (BSP).
The central bank expects inflation to ease to 3.1% this year, well within the target band, from a 5.2% average in 2018.
Inflation hit a nine-year-high 6.7% in September and October last year but has been easing since, hitting 4.4% in January.
The BSP said on Thursday that it expects February inflation, which the Philippine Statistics Authority will report on March 5, to have slowed further to 3.7-4.5%. February last year saw inflation clock in at 3.8%.
ING’s Mr. Mapa added that external factors affected the movement of GS yields. “Upward pressure derived from higher treasury yields on stronger-than-expected United States gross domestic product (GDP),” he said.
The US Commerce Department reported last week that the world’s largest economy grew 2.9% in 2018 but fell short of a 3% target despite $1.5 trillion in tax cuts and a government spending blitz.
At the secondary market, at the short end of the curve, yields on the 91, 182- and 364-day Treasury bills dropped by 0.10 bp (5.57%), 2.7 bps (5.888%), and 3.7 bps (6.060%), respectively.
Meanwhile, at the belly, rates of the two-, three-, four-, five and seven-year Treasury bonds (T-bond) increased by 2.4 bps, 2.1 bps, 2.6 bps, 3.3 bps and 4.1 bps to 6.063%, 6.089%, 6.122%, 6.16%, and 6.242%, respectively.
At the long end, the 10-year T-bond saw its yield go up by 3.6 bps to 6.316%, while rates of the 20- and 25-year tenors went down 1.5 bps and 6.4 to 6.636% and 6.733%, respectively.
For this week, Mr. Mapa said yields will take their cue from domestic inflation data and on possible developments regarding the BSP governor’s successor.
Meanwhile, ATRAM’s Mr.Basas expects yields “to hold around current levels until final issuance of the new RTB in a couple of weeks. February consumer price index out…Tuesday will also be closely watched.” — L.O. Pilar

PLDT, Smart keep top spot as fastest fixed, mobile network in Philippines


PLDT, Inc. and its wireless arm Smart Communications, Inc. kept the top spot as the fastest fixed and mobile network in the country, according to Ookla’s speed testing study during the second half of 2018.
The recent report by Internet speed surveyor Ookla on fixed line network showed PLDT recorded a score of 18.57 during the July to December period, beating its score of 17.31 in the first half of 2018, as it recorded top download speeds of 52.28 megabits per second (Mbps) and top upload speeds of 55.95 Mbps.
Other fixed line providers also recorded higher speed scores compared to the first two quarters of last year. Trailing PLDT was Sky with a speed score of 11.23 from 10.89, followed by SmartBro with 10.99 from 9.79 and Globe Telecom, Inc. with 9.36 from 6.58.
On the Fastest Mobile Award, Smart showed it improved its speed score to 15.57 for the second half of 2018 from 14.98 in the first half. It recorded an average download speed of 17.86 Mbps and an average upload speed of 8.61 Mbps.
Its rival Globe also got a higher speed score of 10.10 in the latter period from 9.93 in the first half of 2018, but was second to Smart.
The data for fixed network was based on 27.2 million user-initiated tests on devices connected to Wi-Fi, while for mobile, the data was from 2.1 million user-initiated tests on long term evolution (LTE)-capable devices.
“This recognition is testament to (PLDT’s and Smart’s) exceptional performance in Q3-Q4 based on Ookla’s rigorous analysis of consumer-initiated tests taken with Speedtest,” Ookla Executive Vice-President Jamie Steven was quoted as saying in a statement by PLDT over the weekend.
For his part, PLDT-Smart Senior Vice-President for Network Planning and Engineering Mario G. Tamayo said the recognition is only proof the company’s investments on network improvement have been paying off.
“Improved connectivity has helped Filipinos keep abreast with ever-evolving times, empowering individuals, businesses and government,” he said in the statement.
PLDT is investing an estimated $5 billion from 2016 to 2020 to enhance its fixed and wireless networks. For 2019 alone, the company is allocating at least P70 billion for capital expenditure.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Russia helping Venezuela with wheat supplies

MOSCOW — Russian Foreign Minister Sergei Lavrov said on Friday that Moscow was helping Venezuela with supplies of wheat, hours before a Reuters reporter saw a Venezuela-bound cargo ship carrying Russian wheat transit the Bosphorus.
Lavrov made the comments about wheat at a joint news conference with Venezuelan Vice President Delcy Rodriguez, who was visiting Moscow.
Lavrov said that efforts by Western nations to isolate Venezuelan President Nicolas Maduro in the face of a challenge from the opposition were causing problems, but that Moscow was trying to help with supplies.
Hours after he spoke, a Reuters photographer saw a cargo ship laden with Russian wheat near Istanbul en route for the Mediterranean. Publicly available tracking data showed the ship was bound for Puerto Cabello in Venezuela.
A Turkish official said the ship was carrying 32,400 tonnes of Russian wheat.
Russia’s agriculture ministry said Moscow had delivered 257,200 tonnes of wheat in 2018 for $57.9 million. It said 30,600 tonnes of wheat had been delivered in January this year for $7.1 million. — Reuters

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