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Stocks decline as foreign investors sell holdings

STOCKS tumbled on Thursday as foreign investors reversed their buying position, alongside the US Federal Reserve’s decision to keep rates unchanged.
The bellwether Philippine Stock Exchange (PSEi) index gave up 1% or 78.67 points to close at 7,759.55. The all-shares index likewise slumped 0.74% or 34.84 points to 4,644.68.
“It was a sell-on-news type of session after the FOMC (Federal Open Market Committee) reaffirmed a gradual hike and driving the risk appetite as the 10-year US treasury yield went above 3%,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a text message yesterday.
At the same time, foreign investors snapped their six-day buying position, with net sales reaching P241.70 million versus the P324.41 million recorded on Wednesday.
At the close of its two-day policy meeting on Wednesday, the Fed said it decided to keep rates steady, but signaled at increases in following meetings.
“No changes to rates as expected but there is some changes to the tone of the post-meeting statement. The description of recent economic developments was more upbeat, in line with recent data. In particular, the characterization of growth in economic activity was upgraded from “solid” to “strong,” as growth in household spending picked up “strongly,” Mr. Limlingan added.
Analysts expect the Fed to hike rates during its September and December meetings.
Wall Street indices ended mixed following the Fed’s announcement, with the Dow Jones Industrial Average dropping 0.32% or 81.37 points to 25,333.82. The S&P 500 index slipped 0.10% or 2.93 points to 2,813.36, while the Nasdaq Composite index added 0.46% or 35.50 points to 7,707.29.
Asian markets, meanwhile, ended in the red on Thursday, as US President Donald J. Trump threatened to intensify Washington’s trade war with China.
Back home, all sectoral indices incurred losses for the day, with the services sub-index leading losers with a decline of 1.22% or 18.61 points to 1,498.94. Holding firms fell 1.1% or 86.12 points to 7,746.14; industrials shed 0.86% or 94.90 points to 10,902.09; property dipped 0.68% or 26.29 points to 3,789.91; financials shed 0.49% or 9.24 points to 1,858.94; while mining and oil went down 0.21% or 22.32 points to 10,177.08.
Eagle Equities, Inc. President Joseph Y. Roxas, meanwhile, attributed the decrease to profit taking after the main index reached its high of three months and breached the 7,800 level on Wednesday.
Value turnover dropped to P4.93 billion yesterday from the P7.18 billion posted in the previous session after some 1.06 billion issues switched hands.
Decliners outpaced advancers, 120 to 76, while 46 issues remained unchanged.
Fourteen of the 20 most actively traded stocks declined, including JG Summit Holdings, Inc. (down 2.62% to P55.80); Ayala Land, Inc. (down 1.67% to P41.25); and BDO Unibank, Inc. (down 0.95% to P135.50). — Arra B. Francia

Porsche cars seized by Customs at NAIA

TWO used Porsche sports cars with a combined value of P28 million, consigned to Don Bosco Technical Institute of Makati, Inc., were seized on Aug. 2 at the Ninoy Aquino International Airport after almost a year since it was intercepted.
The Bureau of Customs (BoC) said the consignee has no exemption authority to import used motor vehicles, which is still required even if the intention is for educational and training purposes by the school.
“The seized one (1) unit used Porsche Boxster S and one (1) unit used Porsche Panamera 4S has an estimated street value of P10-million and P18-million, respectively,” said Customs Commissioner Isidro S. Lapeña.
In a letter dated July 9, 2018, lawyer Sonia S. Tapales, Chief of Import Regulations Division of Department of Trade and Industry (DTI) said that the two used Porsche cars violated the Executive Order No. 156 which prohibits the importation of used motor vehicles.
“Only special purpose vehicles can have exemptions like fire trucks, ambulances, funeral hearses, crane lorries, boom trucks, tanker trucks, reefers, street sweepers, mixers, garbage compactors and special purpose trucks/vehicles,” Mr. Lapeña said.

Arroyo, Duterte’s managers meet, tackle inflation

By Elijah Joseph C. Tubayan, Reporter
HOUSE SPEAKER Gloria Macapagal M, Arroyo recommended to the Duterte administration’s economic managers five anti-inflation measures during their meeting on Tuesday.
Albay 2nd district Rep. Clemente Joey S. Salceda in a social media post late Tuesday bared the discussions between Ms. Arroyo and economic managers in their meeting at the House of Representatives.
“The House under the leadership of Speaker Arroyo proposed to the EMG (economic managers group) measures considered based on the magnitude of a commodity’s contribution to the 5.2% [June] inflation,” said Mr. Salceda.
One such recommendation is that the Department of Energy “consider deferring z-ethane required additional content in oil products as well as the new feed-in-tariff allowance which increased from P0.18 to P0.26/kwh (kilowatt hour) as this alone contributed to a P3.16/kwhr increase in Meralco rates.”
Mr. Salceda noted this oil and electricity inflation contributed 0.7 percentage points to the June headline inflation, Mr. Salceda said.
For fish, which contributed 0.6 percentage points, the House Speaker recommended that the “President…,consider reduc(ing) tariff on fish imports to zero but (this) needs Congress to be in recess.”
Ms. Arroyo also recommended that the National Food Authority “purchase 500,000 MT (metric tons) of well-milled rice with staggered deliveries over 5-6 months,” as rice contributed 0.5 percentage points to inflation.
She also recommended that the President “consider reduc(ing) tariff” on meat imports — which contributed 0.3 — to zero, “but needs Congress to be in recess.”
On the peso depreciation, which weakened by 6.7% year-to-date, Ms. Arroyo said the central bank should study an additional 25 basis point hike in policy rates on top of the 25 basis point increases in May and June due to unanticipated inflationary expectations.
This is “to cleanse market (of) both consumer and business expectations (on) any potential speculative opportunistic content.”
For his part, Finance Secretary Carlos G. Dominguez III said last Tuesday the House leadership and economic managers agreed to prioritize the second package of the tax reform program.
Budget Secretary Benjamin E. Diokno also said yesterday in a TV interview that Ms. Arroyo “seems to be concerned about inflation,” noting that “she may be able to contribute to the conversation” as her presidency over a decade ago experienced high inflation.
Mr. Diokno said the price of oil hit about $135 per barrel during Ms. Arroyo’s time, compared to the $55-70 per barrel expected this year.
Besides Messrs. Dominguez and Diokno, Socioeconomic Planning Secretary Ernesto M. Pernia and Bangko Sentral Governor Nestor A. Espenilla attended the meeting with Ms. Arroyo, along with other congressmen.

ASEAN meet led by Singapore takes up South China Sea

By Camille A. Aguinaldo, Reporter
SOUTH CHINA SEA is back in the discussion table among Southeast Asian countries as foreign ministers gathered in Singapore on Thursday for the 51st Association of Southeast Asian Nations (ASEAN) Ministerial Meetings.
In a draft communique circulated among journalists on Thursday, ASEAN foreign ministers “took note of the concerns” raised by countries regarding the land reclamation activities in South China Sea.
“We discussed the matters relating to the South China Sea and took note of the concerns expressed in some countries on the land reclamations in the area, which have eroded trust and confidence, increased tensions and may undermine peace, security, and stability in the region,” the draft document read.
The Philippines held the chairmanship in the regional bloc last year, with Southeast Asian leaders also discussing the South China Sea where the Philippines, Malaysia, Vietnam, and Brunei are claimants in the disputed waters.
The 2017 ASEAN chairman’s statement dropped the reference of “concerns” over China’s militarization activities in the South China Sea.
“We discussed the matters relating to the South China Sea and took note of the improving relations between ASEAN and China,” the 2017 ASEAN chairman’s statement stated.
Meanwhile, last year’s joint communique of ASEAN foreign ministers read: “We discussed extensively the matters relating to the South China Sea and took note of the concerns expressed by some Ministers on the land reclamations and activities in the area, which have eroded trust and confidence, increased tensions and may undermine peace, security and stability in the region.”
Southeast Asian foreign ministers also “warmly welcomed” the improving ties between ASEAN and China, which encouraged negotiations for an effective Code of Conduct in the South China Sea (CoC). The Philippines is the new country coordinator for ASEAN-China dialogue relations.
They also reaffirmed the importance of maintaining and promoting peace and stability as well as the freedom of navigation and overflight in the region.
The joint communique is set to be presented on Saturday as the annual gathering among ASEAN foreign ministers concludes.
Aside from the South China Sea issue, foreign ministers also discussed the summit meeting last month between the United States and the host city of Singapore, where statements were made, including by Washington, that stepped up pressure on China’s militarization of the South China Sea.
The ministers urged the US and Singapore to continue pursuing peace and stability as well as a denuclearized Korean Peninsula.

Nominations extended for TOYM awards

NOMINATIONS for The Outstanding Young Men (TOYM) Awards have been extended to Aug. 31, organizers behind this award institution said on Tuesday.
TOYM Foundation, Inc. cited the extension as being “due to the bulk of nominations that we are receiving.” Thus, online nominations are extended until Aug. 31 and completion of portfolios with supporting documents and requirements until Sept. 15.
The nomination process begins with downloading the offline form for an advance copy of the requirements and information needed for the nomination, followed by nominations online as subject to the TOYM Search Committee’s verification.
Once the nomination is verified, the nominating party will receive an e-mail and may access his or her TOYM Account to build the nominee’s portfolio.
Qualified nominees are Filipinos who inspire the next generation of unselfish leaders, modern day heroes who made unselfish acts for the greater sense of purpose to see the country better, and ordinary men and women who made extraordinary contributions to society and to unite our communities through positive change.
Now on its 58th year, the TOYM Awards are an annual undertaking of JCI Philippines and co-sponsored by PLDT, the Gerry Roxas Foundation, Inc., and TOYM Foundation, Inc. For more information, check out the webpage toym.jci.org.ph and also follow the TOYM Facebook page.

Palace: Napoles’ multi-million dollar loot stashed in US will be returned soon

By Arjay L. Balinbin, Reporter

 THE Philippine government hopes that the money allegedly stashed in the United States by Janet Lim-Napoles and five members of her family will soon be returned to the Filipino people, Malacañang said.

The Palace issued the statement after the US federal grand jury indicted last Tuesday Ms. Napoles and five of her family members, Jo Christine Napoles, James Christopher Napoles, Jeane Catherine Napoles, Reynald Luy Lim, and Ana Marie Lim, for “domestic and international money laundering and conspiracy for multi-year bribery and fraud scheme.” The amount involved, according to the US Department of Justice, is approximately $20 million.

“With the help of U.S. authorities, who have been in continuous coordination with our government, the funds that Mrs. Napoles and her co-defendants attempted to hide away will soon be returned for the benefit of the Filipino people,” Presidential Spokesperson Harry L. Roque, Jr. said in a statement issued on Thursday evening, Aug. 2.

He said the Palace views the indictment against Ms. Napoles “as a positive development, as it bolsters the government’s case against her before the Sandiganbayan.”

“The charge of money laundering against Mrs. Napoles and her co-defendants shows that there is reason to believe that they attempted to retain the ill-gotten gains from the Priority Development Assistance Fund (PDAF) scam,” Mr. Roque added.

Mr. Roque also said it now “becomes imperative to charge all those who illegally profited from the transactions of Ms. Napoles regardless of their position or political affiliation.”

PHL holds bilateral talks with Iran, Norway


THE Philippines held bilateral talks on Thursday with Iran and Norway on the sidelines of the Association of Southeast Asian Nations (ASEAN) Ministerial Meetings in Singapore, the Department of Foreign Affairs said.
According to the DFA, Foreign Affairs Secretary Alan Peter S. Cayetano invited the two countries to take part in the Philippines’ Build, Build, Build infrastructure program.
For their part, both Iranian Foreign Minister Mohammad Javad Zarif and Norwegian Foreign Affairs Minister Ine Eriksen Soreide congratulated the Philippines on the passage of the Bangsamoro Organic Law.
Mr. Cayetano and Ms. Soreide also discussed developments in the Mindanao peace process. — C.A.Aguinaldo

Senator says colleagues open to amending economic provisions of 1987 Charter

SENATOR Panfilo M. Lacson on Thursday said senators may push for Charter change only if economic provisions of the 1987 Constitution are only amended in order to bring in more foreign investments in the country.
He said the present Charter was “too nationalistic to a fault” that it became overprotective following the “long years of dictatorship.”
“You can just imagine the world has become very small because restrictions on foreign investments still exist, whereas China really opened up to the world market. But why are we still constrained by the provisions of the 1987 Constitution. We could not open up in order to encourage foreign investors,” Mr. Lacson said at the Kapihan sa Senado media forum.
Despite the statement of House Speaker Gloria M. Arroyo on pushing for a separate voting when Congress convenes as constituent assembly to propose amendments to the Charter, Mr. Lacson warned this is not guaranteed.
“But by the time we adopt the joint resolution and entered the joint session, we allow ourselves to compose the joint session with the Lower House, anything can happen,” he said.
Otherwise, the proposed Charter change or shift to federalism is “just waiting to be cremated” due to lack of support among senators, Mr. Lacson said.
“Right now, as far as the Senate is concerned, the proposed Charter change is just waiting to be cremated,” the senator said.
In response, Consultative Committee (ConCom) spokesperson Conrado I. Generoso told reporters in a text message: “From the ashes, the Phoenix rises. You cannot kill an idea whose time has come.” — Camille A. Aguinaldo

Lacson: Sara Duterte ‘potential national leader’

By Camille A. Aguinaldo, Reporter
SENATOR Panfilo M. Lacson sees Davao City Mayor Sara Z. Duterte-Carpio as a “potential national leader” among the new and fresh faces in politics.
At the Kapihan sa Senado media briefing Thursday, the senator said Ms. Duterte was his “top choice” among the young leaders in politics and described the presidential daughter as “strong-willed, stern, vibrant, and progressive-minded.”
“Based on whatever political sense I have accumulated after my long years in government service, Mayor Sara stands out and is right in front of the pack,” he said.
Before expressing support for Ms. Duterte, the senator cautioned against “influence-peddling” in government matters due to kinship.
“Only because of what the Filipinos have experienced in the past administrations involving presidential relatives, we should reject any interference and influence-peddling by somebody outside the official chain of the government bureaucracy, but who projects closeness to the president due to kinship,” he said
“It doesn’t matter if it’s an Imelda Marcos, or a Peping Cojuangco, or a Mike Arroyo, or any presidential relative. It is not about them. It is about undue intrusion in some major state affairs in which they have no business interfering,” he added.
Ms. Duterte, a known rival of ousted House speaker Pantaleon D. Alvarez, has been widely linked to the changes in the House leadership last July 23.
Mr. Lacson also clarified that he was not endorsing Ms. Duterte but noting that her track record as Davao City mayor speaks for itself.
“I’m not endorsing, I’m just saying that among the known, young leaders, if we choose from young and fresh faces in national politics, we’re really looking at Sara Duterte,” he said.
“What I’m only saying is based on my own personal opinion and observation, she’s among the present crop of young leaders, she emerges as a potential national leader,” he added.
President Rodrigo R. Duterte earlier said his daughter would not seek a national position in the upcoming midterm 2019 elections. The presidential daughter has gained high ratings on surveys on possible senatorial candidates.

New officials appointed to DoT

By Arjay L. Balinbin, Reporter
MALACAÑANG on Thursday announced President Rodrigo R. Duterte’s new appointments, including new officials of the Department of Tourism (DoT).
Mr. Duterte on July 30 signed the appointment papers of Maria Rica C. Bueno as Assistant Secretary of DoT replacing Maria Lourdes F. Japson.
“By virtue hereof, you may qualify and enter upon the performance of the duties of the office, furnishing this Office and the Civil Service Commission with copies of your oath of office,” Ms. Bueno’s appointment letter read.
New Tourism Secretary Bernadette Romulo-Puyat, who replaced embattled Wanda T. Teo, had asked all undersecretaries and assistant secretaries of the agency last May to tender their courtesy resignations for her to have a free hand in selecting new officials.
The President also signed the appointment of Myra P. Valderrosa-Abubakar as Director IV of DoT.
On July 12, Mr. Duterte signed the appointment of Ricardo P. Bernabe III as member, in an ex-officio capacity, of the Career Executive Service Board (CESB).
“Please note that, as member of the CESB, you shall be under the supervision of the Executive Secretary, and shall be required to consult the latter before voting or deciding on matters that require Presidential attention, and on such matters that affect the rules, regulations, and other guidelines of the CESB,” Mr. Bernabe’s appointment letter read.

Improved production, efficiency to ease wage hike impact, says MCCI exec

BUSINESSES MUST increase their productivity and improve operations efficiency to soften the impact of the wage hike that takes effect today, Aug. 3, in Central Visayas, said Mandaue Chamber of Commerce and Industry vice-president Steven Yu. “The business sector will comply with the newly approved minimum wage rates starting Aug. 3 and is encouraged to look into efficiency and productivity measures to soften its effect to the bottomline,” Mr. Yu told The Freeman. Hotel, Resort and Restaurant Association of Cebu (HRRAC) President Carlo Suarez, on the other hand, said the wage hike might affect the operations of some businesses. “Actually, we have no issues with the direction of giving better lives for our people. And if it is thru increase in wages, it’s a direct solution. But our concern as business owners is the manner it is implemented,” Mr. Suarez told The Freeman in a separate interview. “Like is it still fair and apt to increase more than twice or thrice a year the minimum wage? The pace of implementation is too drastic that we, employers and business owners, didn’t project this increase,” said Mr. Suarez, who is general manager of Cebu Grand Hotel. The new daily minimum wage hike approved by the Regional Tripartite Wages and Productivity Board in Central Visayas is P20. — The Freeman
>> See full story on https://goo.gl/stc6o5

CAVITEx Phase 1 enhancements seen end-August

CAVITEX INFRASTRUCTURE Corp. (CIC) is looking to finish within the month the first phase of the P1.1-billion road enhancements being undertaken on the Cavite Expressway.
After partially opening on Wednesday two out of four lanes of the Marina flyover, CIC of the Metro Pacific group said it is confident the road widening and the southbound flyover of the toll road will both be completed in August.
“We are still confident that we will be able to finish the lane widening of R1 by the end of this month. And the full completion of MLT (Marina left-turn) facility will also be completed end of this month, so expect the lane widening and the MLT facility to really contribute to the decongestion of the expressway,” CIC President Luigi L. Bautista told reporters in Parañaque City on Thursday.
He previously said the road widening will increase road capacity by 25%, which is now hitting a daily traffic of 145,000 vehicles.
The road widening and the construction of the Marina flyover cost P800 million, while the remaining P300 million is allocated for phase 2 of the enhancements.
Phase 2 will cover the widening of the three bridges in Wawa, Las Piñas and Parañaque, with construction targeted to begin in September.
“There is a CAVITEx enhancement Phase 2 which will consist of the widening of three bridges…. At the moment it’s three lanes in each direction. So by the time that we finish the widening, it will become four lanes in each direction,” Mr. Bautista said.
The Phase 2 components are targeted to be operational by May next year.
“We have to complete it before or during the dry season next year…. So by the time that classes start next year, maluwag na maluwag na (the road would be decongested),” Mr. Bautista noted.
CIC, which is part of Metro Pacific Investments Corp. (MPIC), is the private concessionaire for the CAVITEx project.
MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

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