Alveo records P45.6B in sales

February 28, 2018 | 12:04 am

ALVEO LAND Corp. reported P45.6 billion in sales take-up in 2017, breaching its initial target of P40 billion for the year, boosted by the robust take-up for residential lots and condominium units.

The wholly owned unit of Ayala Land, Inc. (ALI) said this is 20% higher than the P38-billion sales take-up recorded in 2016.

“The market segment is still very robust. There’s a lot of resources in terms of cash, domestically. So there’s a lot of confidence there in the market… The demand will continue to be there,” Alveo Land President Jennylle S. Tupaz said in a press briefing on Tuesday.

The company saw the fastest growth in sales for residential lots at 29% to P8.2 billion. The fastest-selling among Alveo Land’s projects were residential lots inside The Residences at Evo City, ALI’s mixed use estate in Kawit, Cavite. It was able to sell out all of the 395 lots, priced at an average of P9.7 million each, in one day.

Condominium units, meanwhile, made up bulk of the company’s sales for the year at P26.3 billion, up 24% from the P21.3-billion sales recorded a year ago. Offices also grew 7% to P10.8 billion.

Alveo Land started 2017 with an inventory or P25.8 billion, supplementing it with P33.2 billion in launches, for a total inventory of P59 billion for the year. Of the total take-up for 2017, P29.2 billion came from its sustaining inventory, while P16.4 billion came from new launches.

Most of the properties sold were located in Makati City, which the company attributed to the performance of ALI’s mixed-use estate in the area called Circuit Makati. Alveo Land’s projects in the 21-hectare estate include residential buildings Solstice and Callisto, and an office project called The Stiles Enterprise Plaza.

“For 2017, Alveo actively marketed several residential and office projects in Makati, Pasig, Quezon City, and South Luzon. In terms of overall take-up, Makati continues to be a preferred location by both local and foreign markets,” Ms. Tupaz said in a statement.

International sales, meanwhile, accounted for 26% of total sales for the year, led by China, Hong Kong, and North America. The company said investor confidence in the economy is attracting foreigners to purchase property here.

This year, Alveo Land looks to launch over P40 billion worth of projects consisting of around 6,000 units. This is double the number of units the company launched in 2017, as it pursues more horizontal projects outside Metro Manila.

The company will be entering two new areas this year — Bulacan and Cagayan de Oro — where it will sell residential lots.

Asked for the company’s target sales take-up for the year, Ms. Tupaz said it wants to “stay at that level or even higher than that.”

“We have to source our growth not just in the CBDs (central business districts) where land is limited so we’re really gonna have to go out and tap new markets. And it’s good, maganda ang economy ngayon (the economy is doing well),” Ms. Tupaz said. — Arra B. Francia

CCP, UP honor National Artist Napoleon Abueva

February 28, 2018 | 12:03 am

By Susan Claire Agbayani

ADA LEDESMA-MABILANGAN remembers when she was five years old and growing up in the family home where she was surrounded by works of artist Esabelio Napoleon “Billy” Veloso Abueva. They were found at the front door, the terrace, and, inside the house along Dewey Blvd. (now Roxas Blvd.) in Baclaran, Parañaque City, were his paintings such as Rice Planting, which won for Abueva first place at the Art Association of the Philippines (AAP) contest in 1952.

In time, Abueva’s studio was in Tierra Verde, a property in Quezon City which was developed by the Kalaw-Ledesmas in the 1970s.

“Billy (Abueva) was family,” Ms. Mabilangan said during the program in honor of the late National Artist for Visual Arts at the Cultural Center of the Philippines (CCP) last Sunday, Feb. 25. Ms. Mabilangan is the daughter of art patron Purita Kalaw-Ledesma — the founder of the AAP — and one of the country’s main proponents of the modern art movement.

Ms. Mabilangan noted that the families of the Kalaw-Ledesmas and Abuevas go back a long way. “My grandmother, Pura Villanueva-Kalaw, and Billy’s mother, Purificacion Veloso-Abueva, both worked for women’s suffrage,” she said.

After the Second World War, Ms. Kalaw established a scholarship fund for young writers. Although Ms. Mabilangan’s grandmother “preferred writers” (like Andres Cristobal Cruz), she acceded to her daughter Purita’s request because “my mother believed in the talent of Billy.”

“It was the first scholarship Abueva got. It was his big break, and he never forgot,” Ms. Mabilangan said.

MEMORIES OF AN ARTIST, FRIEND
“My kids call him lolo (grandfather),” glass sculptor Ramon Orlina said of Abueva.

The two artists celebrated their birthdays a day apart, Abueva on the 26^th of January, and Orlina on the 27^th. Last month, they celebrated their birthdays at Abueva’s hospital room with champagne, and with Gilopez Kabayao playing his violin.

Unknown to many, Mr. Orlina was trained to be an architect and was a practitioner until 1973. He then shifted to art, eventually focusing on glass. He studied glass art in Czechoslovakia, and had his first art exhibit in 1975.

Reminiscing about his friend during the tribute at the CCP, Mr. Orlina said that Mr. Abueva was “a carpenter, a mason, and a (frustrated) welder, and architect.”

“He was always supportive and generous. He gave me uplifting words of praise. He was kind in lending equipment,” Mr. Orlina recalled.

His voice breaking, the teary-eyed Mr. Orlina addressed the coffin of his friend as he lay in state on the CCP Main Theater stage: “You believed in me. It’s a joy and honor to have [had] you in my life. I’ll cherish your memory.”

It’s not just the Kalaw-Ledesma-Mabilangans and Orlinas who considered Abueva family. During the CCP tribute, Jorge A. Consunji, president and chief executive officer of DM Consunji, Inc. (DMCI), remembered the “sumptuous Filipino spreads, breakfasts in the house, birthday dinners…” as well as the many collaborations between the artist and DMCI, one of which was the crucifix and the altar at the center of the church of the Parish of the Holy Sacrifice at UP Diliman, in the mid-1950s.

Mr. Consunji fondly remembered the artist “combing for materials in our motor pool for hours and hours, for different modes of fabrications.”

He said that Abueva “lived 88 years… with much love in art, appreciated by many…”

Fellow National Artist for Literature Virgilio Almario pointed out how Mr. Abueva has 1,200 known works. He also noted that “the vanguard of modern sculpture” holds the record of having been the youngest person to have been conferred the National Artist award at age 46 in 1976; even if Mr. Abueva once jokingly said that most national artists were seniors who were “in the pre-departure era.”

Mr. Almario said that his fellow National Artist brings with him to his grave, “our highest respect.” He also quipped that Mr. Abueva’s pension was well worth it for the Philippine government.

“Billy was a playful artist,” noted National Artist for Literature F. Sionil Jose. “This playfulness was very much reflected in his work. He was surrounded by ‘junk.’ These were once trees; beautiful living things given new shape. Beauty is what binds us together as a fractured people by brave and caring hands,” Mr. Jose said.

The late artist’s brother Jose “Pepe” Abueva, who once was president of the University of the Philippines, expressed his gratitude to both CCP and the National Commission for the Culture and the Arts (NCCA) for the honors they gave his brother.

THE UP COMMUNITY
A tribute was also given by the community of UP Diliman, at the chapel where one of his best known works is showcased.

Art historian, UP professor, and author Santiago “Jack” Pilar recalled having recently watched the film Ben Hur when he met Mr. Abueva for the first time many decades ago. And he thought that in a way the artist resembled Charlton Heston, and described him as “a man of few words.”

“Billy had a crush on all of us (his classmates at UP College of Fine Arts), until (his wife) Cherry came along,” recalled artist Araceli Limcaoco Dans, best known for her still life paintings featuring calado fabric.

During the tribute, Ms. Dans mentioned Mr. Abueva’s sculptures made entirely of sugar and salt, and how he slept at museums to polish these works during a biennale in Europe (the exact city of which, she no longer recalls).

Mr. Dans introduced to the audience Tito Sanchez — Abueva’s mentee who had been a recipient of two consecutive outstanding sculpture art awards. Ms. Sanchez expressed his sincerest gratitude to the man for what he has achieved, “[Salamat sa] taus-pusong pagtulong, malayo ang [aking] narating (Thaks to his full-hearted help, I have gone far).”

Former dean Florentina Penaranda Colayco, now president of the Metropolitan Museum of Manila said that although she didn’t come from the ranks of College of Fine Arts, “he was very supportive” when she became dean.

Both women noted Mr. Abueva’s penchant for giving ladies (from colleagues to canteen staff) red roses.

“He’s an artist worth his salt. He’s petmalu, lodi and werpa, all rolled into one,” remarked former UP officer for Initiatives in Culture and the Arts Ruben Defeo, using recent slang for “tough,” “idol,” and “power.”

Indeed, as UP Chancellor Michael Tan said: “UP is not UP if not for the sculptures of Abueva.” He cited some of these — the gateway as one enters the university via University Ave., Siyam na Diwata ng Sining at the Faculty Center which survived the recent fire, and Magdangal at the UP College of Arts and Letters. He is also known for Kaganapan, Kiss of Judas, 30 Pieces of Silver, The Transfiguration at the Eternal Garden Memorial Park, the Sunburst at The Peninsula’s lobby, the bronze figure of T.M. Kalaw in front of the National Library, and marble murals at the National Heroes Shrine in Mt. Samat, Bataan.

At the UP tribute to her father, Mr. Abueva’s only daughter Amihan remarked, “UP was his spiritual home. We lived and were nurtured here (at Area 17).” She recalled how he would drag a stone or a boulder wherever he could find it; how he would have wanted a sculpture garden where the boat (Fredesminda 2) was located.

“Pakiusap lang, sana maalagaan, para rin makilala siya ng mga susunod na henerasyon (May we just make a request that these art works be taken care of, so that the succeeding generations would know him),” Amihan Abueva said.

As if to return his generous gesture to all the people he met and touched during his lifetime, as the ceremony ended at the CCP, his “vessel” to the afterlife was surrounded by hundreds of red roses.

More capital-raising activities expected in 2018

February 28, 2018 | 12:03 am

CAPITAL RAISING in the Philippines is seen to increase this year as companies continue to tap investment banks in building their war chests.

Capital raising, which includes equity and fixed-income issuances, amounted to P724 billion in 2017, up from the P382 billion raised in 2016. Almost 80% or P586 billion were from fixed-income issues and P138 billion were from equity issues. Meanwhile, four new companies debuted on the local bourse last year -— Wilcon Depot, Inc., Eagle Cement Corp., Cebu Landmasters, Inc. and Chelsea Logistics Holdings Corp.

And this amount is seen to increase this year.

For one, First Metro Investment Corp. (FMIC) expects capital raising to accelerate this year by 29% to P934 billion from 2017’s P724 billion. Of the almost P1 trillion to be raised this year, P687 billion would come from fixed-income issues while P247 billion is expected to originate from equity issues, Head of Investment Banking Group Jose Pacifico E. Marcelo said in a briefing last month.

The year 2017 was a good year for China Banking Corp. (China Bank) with its investment house subsidiary China Bank Capital Corp. (CBCC) posting a 25% earnings growth from increased participation in capital market deals.

“China Bank Capital saw a significant spike in the number and size of deals that we handled or participated in,” said Ryan Martin L. Tapia, president of CBCC. “We were particularly very active in the capital markets space, where we continue to be one of the top domestic bond houses, and where we expanded our presence in public equity offerings,” he added.

CBCC’s net income stood at P195 million in the January to September period, China Bank’s disclosure to the stock exchange last Nov. 16 showed. It was higher than the P95 million in the same period in 2016. CBCC’s total assets reached P1.501 billion, up from the P620 million in 2016’s nine-month period.

Meanwhile, BDO Capital & Investment Corp. (BDO Capital) was one of the largest contributors of income among BDO Unibank, Inc.’s (BDO) subsidiaries according to BDO Capital President Eduardo V. Francisco.

BDO’s investment banking segment’s net profit for the January-September period reached P687 million, up from the P396 million in 2016’s comparable period, BDO’s disclosure to the stock exchange as of September 2017 showed. BDO Group’s January-September net profit stood at P20.386 billion, up from 2016’s P19.321 billion.

FMIC, along with CBCC, and BDO Capital had been active in capital-raising activities in the last quarter of 2017.

Among the notable deals in the fourth quarter include the Vista Land and Lifescapes, Inc.’s $350-million seven-year bonds offer with the final order book totaling $1.7 billion. That deal saw the CBCC as the domestic manager while HSBC (Philippines) Ltd., and DBS Bank Ltd. were tapped as joint lead managers and bookrunners.

Meanwhile, BDO Capital, FMIC, and CBCC were among the five firms along with BPI Capital Corp. and SB Capital Investment Corp. that acted as joint issue managers for the government’s offer of five-year retail Treasury bonds (RTBs) last November. In the RTB sale, the government raised P255.4 billion — with P125.4 billion worth of five-year RTBs issued during the Nov. 20-27 offer period in addition to the P130 billion issued in the auction on the first day. These RTBs carry a 4.625% coupon rate and will mature in 2022.

BDO Capital and CBCC were also tapped by canned fruit manufacturer Del Monte Pacific Limited (DMPL) as joint lead underwriters for its Series A-2 preferred shares offer last year, raising $100 million from the process which includes $20 million from the oversubscribed shares. BDO Capital was the sole issue manager and sole bookrunner.

Asked on last year’s performance, BDO Capital’s Mr. Francisco noted the intensifying competition among investment banks, resulting in shrinking fees.

“That means we have to work on more deals to make the same amount of revenue than previous years,” he said.

Mr. Francisco added that there were “less project finance deals in general” as the country’s power supply is deemed sufficient for the next few years given that most of the large power plant projects have already been completed and given the government’s focus on Official Development Assistance as the main mode of financing projects.

“The volume of capital market issues has gone up in 2017 due to the increase in Retail Treasury Bond Issues which reached an all-time high of P437 billion in two tranches,” said FMIC President Rabboni Francis B. Arjonillo.

“With minimal fees from government issues, total fees for debt capital markets remained the same for 2017. Mergers and Acquisitions, on the other hand, had a lower volume for 2017, consequently giving lower fees. However, First Metro benefitted from a few deals that provided hefty fees in this space. The Wilcon IPO (initial public offering) lead the way for all IPOs introduced by the market in 2017 and contributed significantly to First Metro’s bottom line,” he added.

2018 A BETTER YEAR FOR CAPITAL RAISING
Nevertheless, 2018 should be a good year for capital raising with investment banks expressing optimism due to expectations of more bond sales and IPOs.

“We see several big IPOs this year,” BDO Capital’s Mr. Francisco said, citing the planned P16-billion IPO of Del Monte Philippines, Inc. this year as a basis for his upbeat outlook.

BDO Capital has been tapped as issue manager, sole global coordinator, and sole bookrunner in the Del Monte IPO, which is set to offer a total of 559.464 million shares to the public or about 20% of its outstanding shares according to a disclosure to the stock exchange earlier this month. This would be the country’s largest IPO in 15 months and Southeast Asia’s largest for a food and beverage firm in nearly six years, according to data by Reuters.

For CBCC’s Mr. Tapia, there would be “more than a handful of IPOs” this year as well as an increase in follow-on offerings.

“We expect conglomerates to continue to be active given the spate of expansion and new projects being considered. These companies would be more cautious about their SBLs [single borrower’s limit] with their lending institutions. In their effort to preserve banking lines, these corporates will turn to debt and equity capital markets to augment their funding requirements,” he said.

For FMIC’s Mr. Arjonillo: “The overall fixed income issues are expected to increase by 17% for 2018 where a 68% increase in total corporate bond issues (P126 billion to P212 billion) is anticipated.”

“Additionally, a 79% increase in common equity issues is expected for 2018 (P138 billion to P247 billion). All things equal, we see a more robust market issuance in 2018, in both debt and equities markets,” he added.

For BDO Capital’s Mr. Francisco: “There will be several more big-ticket items this year that we expect but we will wait for the client to announce this at due course. Bond issuances will also continue as the clients want to tap the markets in ahead of the several Fed [Federal Reserve] increases expected this year.”

Besides the Del Monte IPO, another notable deal this year would be San Miguel Corp.’s P30-billion fixed rate bond issuance this March of which CBCC, FMIC, and BDO Capital were among the seven banks tapped to arrange the offer.

Meanwhile, BDO Capital and FMIC were tapped by the Philippine Stock Exchange (PSE) to arrange its P3.16-billion stock rights issuance of which the funds raised will be used in the acquisition of the Philippine Dealing System Holdings Corp., the country’s fixed-income exchange operator. Originally planned this month, the PSE pushed back the planned stock rights offering to March in light of the volatility in global markets.

“We will definitely see more bond sales this year as more issuers will utilize their shelf registration, preserve banking lines, diversify their funding source, and widen their retail investor base,” CBCC’s Mr. Tapia said.

“Furthermore, we expect to see more maiden fixed-income issuers as companies look to expand their investor base and diversify their funding sources from just the usual bank loans. Given these trends, we expect a large volume of fixed-income issuances from repeat and maiden issuers alike,” he added.

Asked on the possible impact of the newly implemented Tax Reform for Acceleration and Inclusion (TRAIN) law on their businesses, CBCC’s Mr. Tapia said: “From our perspective, the DST [documentary stamps taxes] rate hike is the most relevant in terms of deal flow, as this increases the cost of doing debt or equity issuances.”

“That said, we do not foresee any material impact on our business as corporates will still have funding requirements to bridge,” he added.

For FMIC’s Mr. Arjonillo: “[T]he TRAIN law will affect First Metro’s business insofar as stock trading and funds generation activities are concerned, due to higher stock transaction tax and DST of 20% and 0.125%, respectively. But this is just in the short-term and may be short-lived.”

“For as long as the conditions exist to increase the absorptive capacity of the economy, i.e., infrastructure projects remain on track, a global economic recovery continuing that will spur our exports, domestic consumption strong, manufacturing activity growing, imports are mostly in capital goods, and corporate profits showing an upward trajectory — all these evidenced by robust macroeconomic numbers — the additional taxes will serve as a catalyst, rather than as a deterrent, to economic growth,” he added. — Christine Joyce S. Castañeda

Air21 to upgrade trucks for food delivery

February 28, 2018 | 12:03 am

AIR21 is looking at upgrading its trucks to suit the logistics demand of the food industry, especially in the countryside where the lack of commercial produce to deliver to Manila is costing the company in maximizing its fleet.

The firm’s Regional Business Development Head Maria Rhona R. Begonia said the company is looking at upgrading its fleet for this shift in strategy, a move which will “definitely” require a “big expense for the company.”

“Most SMEs (small and medium enterprises) are farmers. Right now, we’re in the process of reflecting our trucks because we want it temp[erature]-controlled for food-grade because we want to be of service to the farmers,” Ms. Begonia said in an interview on the sidelines of the Ureka Forum on Monday at the Philippine Trade Training Center in Pasay City.

Air21 currently has 600 trucks. About 300 are stationed in provincial hubs and the remaining 400 in the National Capital Region. Of the total, about 270 are eyed to initially undergo upgrading, with the company planning to upgrade more of its trucks in the future.

“The message we’re trying to get across is that we are preparing the company to serve the local industries, especially food logistics,” she added.

The move is being piloted with products that are not highly perishable such as virgin coconut oil, among others. Delivering fresh vegetables and fruits will be next. The firm has also established a provincial division to focus on addressing the low utilization rate in deliveries from Manila to the provinces.

Ms. Begonia said that currently, Air21’s trucks are fully utilized from Metro Manila out to the provinces, but for the return trips, the utilization rate is just at 10% to 20%.

At present, about 80% of the firm’s total manpower is concentrated in the National Capital Region, while the remaining account for the provincial work force. Ms. Begonia is looking at striking a balance between the manpower allocation in the next few years as Air21 shifts its focus to rural areas.

To bolster efforts in its shift to the provincial areas, Air21 signed in December 2017 a memorandum of understanding with the Department of Trade and Industry and Department of Science and Technology in the Cagayan Valley Region. The province has become active in adopting the services of Air21 to send agriculture-based products to Metro Manila.

Air21 is set to sign a similar pact with the same agencies in the Mimaropa (Mindoro, Marinduque, Romblon and Palawan) region next week. — J.C. Lim

Risks ahead for financial markets in 2018

February 28, 2018 | 12:02 am

THE LAST THREE MONTHS of 2017 were, for the most part, a good quarter for local financial markets amid strong economic growth, stock market record-highs, and the passage of the first package of the tax reform program.

Last month, the Philippine Statistics Authority reported the Philippine economy expanding in the fourth quarter by 6.6%. While the fourth quarter turnout was slightly lower than market expectations, it was enough to bring the full-year performance to 6.7%, which is within the government’s 6.5-7.5% target range. To compare, the Philippine economy last year was among the fastest-growing economies in Asia after China’s 6.9% and Vietnam’s 6.8%.

Growth in government spending for the year continued to be high at 7.3% albeit slower than 2016’s 8.4% according to the government’s national accounts. Bucking the trend was spending in the fourth quarter, which accelerated to 14.3% compared to 4.5% in the fourth quarter of 2016.

In a separate data by the Department of Budget and Management, infrastructure and capital outlays reached P95.3 billion, which is 28.8% higher than the P74 billion in the 2016’s comparable two months.

Another highlight, and perhaps the most noteworthy, of the quarter was the passage of the first package of the Tax Reform for Acceleration and Inclusion (TRAIN) act. Package 1 of TRAIN reduces the income taxes of almost all of the country’s taxpayers starting this year. On the other hand, additional taxes were raised on products that include sugar-sweetened beverages, tobacco, fuel and cars to make up for the foregone revenue in income tax cuts.

The passage of TRAIN and the “massive” infrastructure program led Fitch Ratings to upgrade the country’s credit rating from BBB- to BBB with a “stable” outlook. The new rating marks the first major upgrade secured under the Duterte administration with the last upgrade being on September 2015.

“The approval of the first package of TRAIN partly improved sentiment on the local financial markets, as lower tax rates for individual taxpayers lead to higher consumer incomes and consumer spending power that could lead to higher sales and income of consumer-related companies,” said Michael L. Ricafort, economist at Rizal Commercial Banking Corp. (RCBC).

In the local bond market, investor demand for local government securities (GS) was robust based on oversubscriptions in the Bureau of the Treasury’s auctions during the quarter. In the primary bond market, the Treasury fully awarded the Treasury bills (T-bills) it offered in the October auctions, while partially awarding those of the 364-day T-bills. Following the P255-billion issuance of the five-year retail treasury bonds, however, the government rejected all bids for the 91-, 182- and 364-day T-bills during the Nov. 27 and Dec. 11 auctions given the weak market appetite and the government already having a healthy cash position. Meanwhile, GS yields at the secondary market were up 54 basis points on the average quarter on quarter.

For equities, the rosy expectations stemming from tax cuts pushed the Philippine Stock Exchange (PSE) index to close the year at 8,558.42 points — then a record-high. The PSE likewise reported an 18% increase in earnings to P825 million with a 3% increase in average turnover to P8.06 billion in 2017.

On the other hand, US interest rates rose during the fourth quarter following the interest rate hike by the US Federal Reserve (US Fed), and the passage of a tax reform bill reducing income taxes for US individuals and corporates.

“The rise in global interest rates as a result of the hawkish hints from these two major central banks pushed domestic yields higher and weakened the peso,” said Guian Angelo S. Dumalagan, market economist at Land Bank of the Philippines (Landbank), referring to the US Fed and the European Central Bank (ECB).

In the fourth quarter, the peso averaged P50.93:$1, depreciating 0.19% from the previous quarter’s average of P50.84:$1, according to data by the Bangko Sentral ng Pilipinas (BSP). In October, the peso averaged P51.34:$1, depreciating by 0.65% from the P51.01:$1 average in September following market expectations of a better third quarter US GDP growth. Also contributing to the pressure was the strengthening of the dollar against the Euro amid the ECB’s decision to prolong its bond-buying program that time. At one point during the month, the peso weakened to an 11-year worst P51.95:$1.

Meanwhile, the peso rebounded in November and December, appreciating 0.6% and 1.28% from their previous months’ averages, respectively. At this time, lending support to the peso include, among others, the expectations of a stronger third quarter Philippine GDP growth; the market perception of a more hawkish Fed under Jerome Powell, replacing Janet Yellen as US Fed chair; and the legislation of the TRAIN bill into law.

WHERE DO WE GO FROM HERE?
Even before the passage of the TRAIN bill, analysts were already expecting the BSP to raise key rates to keep inflation in check. A month after the law’s passage, inflation in January increased to its fastest pace in more than three years at 4% — the high-end of the BSP’s 2-4% target band for the year and surpassing market forecasts.

Despite this, the BSP kept policy rates unchanged during its monetary board meeting last Feb. 8. Instead, the central bank announced the reduction of the reserve requirement ratio (RRR) by one percentage point to 19% effective March 2.

“The reduction in ultra-high reserve requirements to a level more comparable with other ASEAN countries, is part of a broader strategy by the BSP to shift towards the use of more market-based monetary instruments for managing liquidity in the financial system,” said BSP Governor Nestor A. Espenilla, Jr., referring to the Association of Southeast Asian Nations.

The BSP requires Philippine banks to set aside a fifth of their total deposit base with the BSP even as they don’t generate any returns. But Mr. Espenilla, who personally wants to see the RRR at single-digit levels, has long suggested of the cut since last year, describing the current 20% level as an “inefficiency to the financial system.”

However, lessening the Philippines’ bank reserve requirements — one of the highest in the world — does not necessarily mean a shift in policy stance, according to the central bank governor.

“[F]orthcoming reductions in RRR should not be mistaken as a change in monetary policy stance,” Mr. Espenilla said earlier this month. “Rather, it should be viewed as part of ambitious financial market reforms that BSP is currently implementing.”

The BSP, along with some of the country’s economic managers, maintained that the fiscal reform’s upside influence on prices is “one-off” and is “not considered as unduly inflationary.”

“The recently approved tax reform program of the NG (National Government) may have some inflationary impact in the short term although a monetary policy response may not necessarily be warranted particularly if there is limited evidence of significant demand-side pressures or a disanchoring of inflation expectations,” Mr. Espenilla said.

For analysts, raising the interest rates this year would not be surprising given market developments.

“While average inflation this year is still expected to fall within the BSP’s target range, the local central bank might take a proactive approach by hiking rates sooner rather than later, considering the natural time lag of monetary policy,” said Landbank’s Mr. Dumalagan.

Mr. Dumalagan added that the BSP, US Fed and the ECB are seen to be less accommodative: “These three central banks are expected to tighten their monetary policy settings this year, potentially hurting stocks and bonds, whose prices move inversely with interest rates,” he said.

“It could also cause volatility in the foreign exchange market, as there might be a push and pull on the peso given that hawkish moves from the BSP are beneficial to the peso while hawkish actions from the Fed serve to reduce the local currency’s attractiveness against the dollar.”

Cheuk Wan Fan, HSBC Private Banking Head of Investment Strategy and Advisory in Asia, shared the same view: “Currently, we only expect one interest rate hike in the Philippines. We expect one 25-basis point interest rate hike in the second quarter of this year.”

For Chidu Narayanan, economist at Standard Chartered, the country’s strong credit growth could prompt the BSP to increase rates this year: “We are a little worried about credit growth. Credit growth has been high among households and corporates.”

For now, the BSP sees inflation hovering slightly higher than expected.

“Taking into account the latest available information, the baseline forecasts of the BSP show that inflation will average slightly above the high end of the target range for 2018 and above the midpoint of the target range for 2019,” noted the central bank governor.

For RCBC’s Mr. Ricafort: “Major catalysts include the second package of the tax reform measures (i.e. reduction in corporate income taxes, rationalization of fiscal incentives), as well as other tax reform measures such as those that pertain to capital market development.”

Below are analysts’ outlooks for each of the key markets:

EQUITIES
Gov. Espenilla, BSP: “The planned integration of the fixed income exchange and equities market, a step to make domestic capital market more efficient and cost effective, is expected to make the local bourse more robust and attractive to both foreign and local investors.”

Mr. Dumalagan, Landbank: “Equities are expected to remain strong, assuming that the Build, Build, Build program and the tax reform of the government would unfold as planned, without unexpected delays. Else, we could see a downward correction in the local index, especially since higher interest rates are generally bad for stocks.”

Mr. Ricafort, RCBC: “Consumer-related companies/industries that benefit from higher consumer incomes and spending in terms of higher incomes and sales could lead to higher valuations. However, companies/industries whose costs will significantly increase as a result of higher taxes on oil/petroleum, sweetened beverages, tobacco, vehicles, coal, mining, local oil/petroleum exploration may be adversely affected in terms of narrower margins, lower sales/net income, and valuations.”

Ms. Fan, HSBC: “Within Asia, Philippine stock market is relatively expensive as compared with the regional average. Currently, the 12-month forward P/E (price-to-earnings ratio) of the Philippine stock market is around 19 times as compared with the regional average of 13 times. This underpinned our relatively neutral view on the upside potential of the Philippine market as compared with its regional peers.”

FIXED-INCOME
Gov. Espenilla, BSP: “The Philippine government is expected to source 80% of its 2018 borrowing program domestically while the remaining 20% will be from external sources. Moreover, to support the funding requirements of the administration’s infrastructure push, the NG is planning to increase gross domestic borrowings by 30% in 2018.”

Mr. Dumalagan, Landbank: “Yields are expected to rise due to inflationary pressures and tighter policy settings domestically and abroad. Higher yields would mean lower bond prices. In relation to US monetary policy, it is also critical to monitor the progress of the US tax reform, as it could potentially defer or accelerate the pace of US interest rate normalization. Political noise concerning the exit of Britain from the Euro zone and the North Korean missile program need to be observed as well, as it could potentially result in some volatility in the financial markets.”

Mr. Ricafort, RCBC: “Local interest rates could continue its gradual upward trend, fundamentally supported by higher inflation, stronger Philippine economic growth, weaker peso exchange rate, and the rising trend in US/global interest rates. The US Federal Reserve is widely expected to continue raising its key short-term interest rates in 2018 (three to four Fed rate hikes of +0.25 each), as well as the tapering of the Fed’s balance sheet.”

FOREIGN EXCHANGE
Gov. Espenilla, BSP: “The Philippine peso relative to the US dollar is expected to remain broadly stable. The expected growth in foreign exchange inflows from overseas Filipino remittances and BPO (business outsourcing processing) revenues (in 2018 by 4% and 10%, respectively); and sustained inflows from foreign investments, tourism receipts, as well as the ample level of the country’s gross international reserves, are expected to support the peso.”

Mr. Dumalagan, Landbank: “The peso is still expected to remain weak, at least for this year, primarily because of the continuous rate hike of the US Federal Reserve, which is pulling foreign portfolio investments outside of the country. The local currency’s depreciation, however, might be tempered by the country’s improving macroeconomic fundamentals.”

Mr. Ricafort, RCBC: “Record high trade deficits have led to some weakness in the peso exchange rate vs. the US dollar. However, relatively weaker US dollar vs. global/Asian currencies since 2017 could mitigate/limit this.”

Divya Devesh, Asia FX Strategist at Standard Chartered Bank: “We expect the dollar to be broadly weaker in 2018. Inflation expectations in the US still remain quite low. Global growth has become synchronized, which means that US assets on a relative basis are not as attractive.”

“We expect dollar peso to be largely range-bound for most part of 2018. We’re looking dollar peso at P50.5 by the end of this year. I think it is important to note that we are expecting dollar peso to remain relatively stable even in a weaker dollar environment. That should mean that the Philippine peso will continue to underperform relative to its peers in [emerging markets] and in Asia.” — J.B. Gonzales

Artist Betsy Westendorp marks her 90th birthday with a book launch

February 28, 2018 | 12:02 am

CHATTER FILLED the lobby of the Metropolitan Museum of Manila on Feb. 22. A giant diptych of Betsy Westendorp’s signature clouds greeted guests, along with two large tables on which guests skimmed through hardcover books filled with her portraits and landscapes. The artist arrived dressed elegantly in her signature color — white. All the artist heard was the buzzing as the venue was a full house. It was her 90^th birthday.

Spanish painter Betsy Westendorp celebrated her birthday with the launch of a two-volume coffee-table book focusing on her art — portraits, landscapes, the Malacañang collection, Taal lake scenery, her flowers and her clouds. A project of the De La Salle University (DLSU) Publishing House, the book was edited by art critic Cid Reyes, designed by Spanish graphic designer Iñigo Cerdan, and includes Spanish text by art critic Elena Flórez.

The production of the book — called simply Betsy Westendorp — was initiated by museum administrator and writer Rita Ledesma who inquired about the possibility of working on it with the publishing house.

“The goal of the publication is to chronicle the life and work of Betsy Westendorp and give this the best package we can come up with, in order to tell the world (so to speak) of the distinct achievement of an artist and, specifically, a Spanish artist who is also a Filipino,” DLSU Publishing House Executive Publisher Dr. David Bayot told BusinessWorld in an e-mail about the book’s content and goal.

At the launch, Mr. Bayot said the works included in the books were carefully chosen by Ms. Westendorp.

“We have been offering complimentary copies to various units (e.g. Metropolitan Museum and libraries) in order to fulfill our goal for this publication — to tell the people about the life and art of Betsy Westendorp,” he told BusinessWorld.

BETSY’S WORDS
Ms. Westendorp still paints every day and considers it a form of meditation. “If I start painting when I have a problem, after a few hours, I don’t have worries anymore. They disappear,” she told BusinessWorld during the launch.

Ms. Westendorp started her career painting portraits and later explored landscape painting. “I started [with] portraits, I enjoy[ed] it so much. First, I painted my family and then continued until I had commissions. I enjoyed it so much. I loved to do it,” she said.

Her favorite painting is the one she made of her grandson Ian and daughter Isabel (Portrait of Isabel with Ian). “The painting I did out of a photograph of my grandson who died when he was 26 years old — I had a picture taken of him and my daughter by a window in my house in Madrid. They were sitting by the window [and] a glass and then there was a pool outside.” And my grandson, I loved him so much. He was so happy with his mother and enjoying the moment… I painted it. I enjoyed so much painting his face. Remembering how it was and [you know], if you know a person very well, it’s easy to paint,” she said.

“[Painting portraits] is special. A portrait painter is not made, [he/she] is born. There are many people who would like to do portraits, but they can’t get the likeness, so, that means they don’t have it. They can be painters. They can paint anything, but they can’t get the likeness of a person,” she explained, referring to American portrait artist John Singer Sargent’s statement: “A portrait is a picture in which there is just a tiny little something not quite right about the mouth.” Ms. Westendorp agreed saying that in portraiture, “the mouth is the most difficult [thing] to paint.”

The artist continued by saying that portrait painters eventually tire from what they do. “But all portrait painters, [there] is a time when we get tired. It happens to all of them… There is no freedom in portraiture. [Because] no matter what, I’m going to paint whatever I like, but you get influenced… There is a time that you really get tired. And there are so many beautiful things in nature, why waste your time? And besides, it is discouraging. People are not attracted to portraits in auctions.

“I will not consider doing anything that I enjoy but painting… I’m so lucky that I have good health although I’m very old. But I don’t want to think about years. As long as I feel like painting, I will do it, and that’s what inspires me,” she said.

Copies of the two-volume book will soon be available for sale at the De La Salle University Publishing House and museums in Metro Manila. The set is priced at P7,500. — Michelle Anne P. Soliman

Combined assets of the Philippines’ biggest banks reach a record-high P14.9 Trillion in 2017

February 28, 2018 | 12:02 am

FOURTH-QUARTER growth in the assets of the country’s biggest banks continued to post double-digit growth from the previous year, with loans increasing by nearly a fifth and asset quality still above regulatory minimum levels. Read the full story.

FINTQ eyes partnerships in inclusion push

February 28, 2018 | 12:02 am

FINTQnologies Corp. (FINTQ), the financial technology arm of Voyager Innovations, Inc., is eyeing to forge partnerships with cooperatives and associations in line with its objective to include more Filipinos in the formal financial system.

In an interview with BusinessWorld, FINTQ managing director Angelito M. Villanueva said the firm is looking to tap more cooperatives and associations to improve financial inclusion in the country.

“Right now, we are cornering the cooperative sector. Lendr will [be partnering with cooperatives through] shared services agreement wherein we’re covering the entire 26,000 registered cooperatives nationwide,” Mr. Villanueva said, referring to its digital lending platform.

By doing this, Mr. Villanueva said FINTQ will be able to tap 14 million Filipinos and introduce formal financial services to them.

“When you talk of sectors, like senior citizens, the youth, overseas Filipinos, they would have at least associations. Once you can capture them through [associations], then you can easily entice them to become part [of the system].”

Aside from associations, Mr. Villanueva said the firm would like to tap the transport sector, particularly groups of jeepney, taxi and tricycle operators and drivers.

By doing the “wholesale approach” or by tapping the said groups, FINTQ will move closer to achieving its goal to help have 30 million Filipinos financially included by 2020.

“We aim that by 2020, unbanked and underserved Filipinos will at least get on board basic financial services: an electronic wallet for payments and remittance, and a microsavings account,” FINTQ said in its second Inclusive Digital Finance Report released last month.

“We want them to build their financial footprint through our retail products so that they could eventually become fully banked with the power to access more sophisticated forms of financial services.”

Currently, FINTQ has partnered with 32 non-government and people’s organizations.

Meanwhile, the company is set to launch a microinsurance platform under its KasamaKA initiative, allowing partner insurers to offer insurance products for as low as P20.

Mr. Villanueva added that the firm will also launch microsavings and microinvestment platforms “this year.”

Voyager Innovations is PLDT, Inc.’s digital innovations unit. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Karl Angelo N. Vidal

SSPC opens $51-M facility in Clark for production of latest multimedia cards

February 28, 2018 | 12:02 am

SFA SEMICON Philippines Corp. (SSPC) opened its $51-million manufacturing facility in Clark Freeport Zone, Pampanga yesterday, where it plans to start producing the latest version of embedded multimedia cards (eMMC) found in tablets, smartphones, and GPS tracking systems.

In a disclosure to the stock exchange on Tuesday, SSPC said the new facility forms part of the second phase of its manufacturing building in Pampanga, and will have a gross manufacturing footprint of 18,000 square meters. The company targets to accommodate service contracts from new clients with the facility.

SSPC is the local manufacturing arm of Korean firm SFA Semicon Korea. The company has a business transaction agreement to supply its products to Samsung Electronics Co., Ltd. until May 2019.

“The Phase 2 expansion project reflects the commitment of Korea’s SFA Group to make SSPC its manufacturing hub in the region,” SFA Semicon Korea Chief Operating Officer Byeongchun Lee was quoted as saying in the disclosure.

Prior to the opening of the facility, SSPC was already the top export revenue earning locator in Clark Freeport Zone. It expects to further increase its export revenues with this expansion.

With the opening of the plant, SSPC said it will now start manufacturing the newest version of eMMC chips for which the company has invested $4.3 million.

SSPC described an eMMC chip as an advanced, high-performance NAND flash memory designed for mobile applications used in tablets, smartphones, GPS systems, eReaders, and other computing devices.

Aside from eMMCs, the company also produces DDR4 generation dynamic random access chips.

Shares in SSPC added eight centavos or 3.49% to end at P2.37 each at the Philippine Stock Exchange on Tuesday. — Arra B. Francia

Analysts on banks’ stocks: Aggressive purchase and hold at current levels

February 28, 2018 | 12:01 am

[Click to expand]

By Carmina Angelica V. Olano

THE GROWTH of banking stocks during the quarter accelerated, an uptrend which analysts attribute to lenders’ impressive corporate earnings. For this year, they also signaled an “overweight” on the sector, amid favorable interest rate environment and sustained strong economic fundamentals.

The Philippine Stock Exchange index (PSEi) breached the 8,500 level for the quarter, which at that time, analysts attributed to window dressing by corporations, as well as sustained inflow of foreign investors favouring the approval of TRAIN (Tax Reform for Acceleration and Inclusion). The local bourse closed the year at an all-time high of P8,558.42, up 386.99 points or 4.7% from the third quarter of 2017.

“The Financial industry outperformed the PSEi by 9% after the sector increased by 13.7%, compared to just 4.7% of the benchmark,” said Dean M. Ebona, investment officer at the Trust and Asset Management Group of China Banking Corp. He attributed this “stellar” performance primarily to the double-digit surge in the stock prices of BDO Unibank, Inc. (BDO) and Metropolitan Bank & Trust Co. (MBT) at 25.5% and 17.2%, respectively.

For John Martin Luciano, research analyst at the COL Financial Group, Inc. the top-tiered banks were the big movers of the Financial sub-index. “The three largest banks outperformed the [PSE] during the fourth quarter,” he said.

In the third quarter last year, the Financials sub-index — which includes banks — grew only by 1.2% in the third quarter of last year. For the full-year 2017, the index rose 34.6%, which also outperformed the PSEi’s 24.7% jump from P6,861.31 at the beginning of the year.

Top-tiered BDO and MBT are joined by peer Bank of the Philippines Islands (BPI) with a price hike of 8.7%, as well as mid-tiered banks Security Bank Corp. (SECB) and China Banking Corp. (CHIB), with increases at 3.4% and 1.7%, respectively.

Of the 13 listed banks, four have posted price retreats, dragging the sector’s average gain at 3.9%. The Philippine Business Bank (PBB) dropped the most at 8%. Both Philippine Bank of Communications (PBC) and Philippine National Bank (PNB) followed with a fallout of 4.1%, while East West Banking Corp. (EW) fell 1.5%. Only Union Bank of the Philippines (UBP) showed no price movement during the quarter.

For Joseph James F. Lago, assistant vice-president and head of research at the PCCI Securities Brokers Corp., some banks’ prices fell due to losses in their other income.

“Several banks reported declines in trading gains… [while] some banks’ net interest margins (NIMs) are challenged given the competitive landscape and amount of liquidity, [even as the market yields] continued to rise during the period,” he said.

For Carlo B. Tiu, equity analyst at the First Resources Management and Securities Corp., the financial sector “performed better” compared to the PSEi during the quarter, “driven by robust remittances stream that went towards the banks due to the Holiday season.”

However, for smaller banks, price gains from remittances news were canceled out by speculations. “Due to the drastic decline in the Philippine peso that went to P51.98 in October [against the dollar]. The small banks took much of the hit from the negative speculations… [while] the large banks flourished during the quarter, as investors started transferring assets towards companies that are considered ‘safe.’” Mr. Tiu said.

LENDING GROWTH BOOSTS EARNINGS
Analysts have attributed banks’ higher corporate earnings to improvements in both core lending and investment businesses, which drove net interest income and net interest margins higher.

“In general, net interest income drove the growth in earnings during the period,” Mr. Luciano said.

Mr. Tiu agreed saying, “The core lending segments and deposit-taking and fee-based businesses of the banks drove most of their earnings higher.”

For Rachelle C. Cruz, research analyst at the AP Securities, Inc., banks benefitted from higher debt yields.

“Banks performed quite well in the fourth quarter of 2017, thanks to rising interest rates which boosted net interest margins (NIMs).” On the demand side, she also mentioned that credit lending has “remained strong,” given the “banks’ loan portfolio growing at mid-to-high teens level.”

As for Mr. Lago, “Those with stable NIMs [has enabled] expansion of their consumer loan portfolios.” This segment has yielded better compared to the “very competitive” corporate lending, he said.

He also mentioned that banks that have taken “longer-term infrastructure or power sector loans” have showed improved NIMs and [business] yields.

Mr. Lago has identified individual stocks whose price drop did not directly correlate with its earnings. Contrary to EW’s stock price, which fell during the quarter, its profits jumped by 60% to P9 million from a year ago.

Likewise, PBC has nearly doubled its profit this quarter from a year ago, he said. PBC’s earnings was due to “two factors. The new majority owners’ resolve to refresh the image of the bank over the past two years, and the low profit base of its P9-million gain in 2016.”

A higher or stable NIM — the difference between the interest income earned and the interest paid — indicates that a lender realizes more profits in using its assets to generate returns that to offset interest expenses.

For Maria Eleanor C. Reyes, head of research at the Unicapital Securities, Inc., BPI, MBT and SECB earnings has stood out among listed banks. “Corporate loans drove growth in [BPI’s] total loans. Its growth in net interest income has compensated for the drop in non-interest income, so that total revenue reported a decent 6.7% hike year on year,” she said.

As for MBT, “corporate banking brought in the most to the bottom line… [in which] NIM remained high at 3.75%, the highest among its peers,” Ms. Reyes said.

Likewise, Cristina S. Ulang, assistant vice-president and head of research at First Metro Investment, Inc. (FMIC) recognized, MBT has the best value among the top three banks, given its 1.3 times price-to-book and below peer average price-to-earnings ratio at 13 times. “MBT has achieved a 10% core earnings growth for 2017, beating estimates,” she said.

Both Ms. Reyes and Ms. Cruz had mentioned SECB’s stand out earnings performance. “54% or P1.3 billion worth of trading gain in 2017 was generated during the quarter, [coupled] with consumer loans, comprising 16% of total loans, grew by 49%,” Ms. Reyes said.

Ms. Cruz, on her part said, SECB has, “outperformed street estimates. This is due to the one-time strong core business, gain from the sale of trading securities, and lower operating expenses.”

OVERWEIGHT ON LENDERS’ STOCKS
Analysts have recommended an “overweight,” or stocks that poses better value compared with other stocks.

“Most equity analysts are recommending an overweight in the banking sector as it mirrors the country’s gross domestic product (GDP),” said Ms. Ulang. She expects banking stocks to track GDP, which FMIC forecasts a 7.5% full-year growth, “driven by investments, manufacturing, and government spending,” she said.

Some analysts underpinned banks advantage on loan portfolio expansion and policy rate hikes.

“Strong GDP growth is seen to support demand for credit,” and “we believe that the best beneficiaries of a rising interest rate environment are banks,” said Ms. Cruz. Therefore, she looks out for banks that are “expanding to the consumer and small and medium enterprise space, as these segments remain underpenetrated.”

Similarly, she sees potential long-term growth on banking stocks given healthy asset quality supports further loan expansion, and rising interest rates will support higher NIMs. “Capital-raising activities through rights offer (i.e. BPI, MBT, RCB) should be viewed as positive as this will allow banks to have adequate capital to sustain long-term growth,” she mentioned.

For Mr. Luciano, he expects corporate earnings will continue to rise. “We expect the banking sector’s core businesses (net interest income + fees) to drive the earnings growth in 2018. Growth in net interest income is expected to come from strong loan growth on the passage of the tax reform program,” he said.

“Meanwhile, we expect gradual improvement in net interest margins amidst rising interest rates and lower reserve requirement ratios. Fee-based revenues are also expected to post steady results with the increase in the overall economic and banking activity,” he added.

For his part, Luis Gerardo A. Limlingan, head of sales at the Regina Capital Development Corp., said an “imminent” rate hike could possibly happen during the first half of 2018, “with inflation moving up, and the BSP adjusting their full-year forecast to 4.3%.” Likewise, too much liquidity in the system “combined with positive surprise on inflation is starting to create a base for higher rates.”

“We like banks in general due to double digit loan growth… as a result of increasing interest rates,” and reduced dependence from trading income, said Raul P. Ruiz, first vice-president and head of research at RCBC Securities, Inc.

Mr. Lago also count on banks’ efforts to expand loan portfolio, especially when “the increase in disposable income for the domestic consumers after implementation of TRAIN.”

Mr. Ebona recommends a buy on BDO, BPI, and MBT at “below their fair values as they have an inherent competitive advantage to attract low-cost funding and lend to big companies with high credit quality. Furthermore, they have above average return (ROE) and more efficient in operations.”

In contrast, Mr. Tiu said, “it would be best of investors would hold their financials stock and buy more during pullbacks, for the first quarter.”

“Banking stocks would remain stable. Inflation is still controllable, same as the declining peso. However, should the tides change and result to a further incline in inflation due to TRAIN, we may see a slowdown in growth of banking stocks though the quarter,” he said.

Cebu Pacific launches Manila-Melbourne route

February 28, 2018 | 12:01 am

CEBU PACIFIC (Cebu Air, Inc.) will fly direct Manila-Melbourne flights starting Aug. 14, marking its second route from Manila to Australia.

The airline said in a statement that it will operate the route thrice weekly every Tuesday, Thursday, and Saturday.

“The launch of our service between Melbourne and Manila will give travelers from Australia seamless connections to other destinations in the Philippines at year-round low fares. This will enable Filipinos living in the Melbourne area to visit their families more often, and encourage more Australian tourists to spend their holidays in the Philippines,” Candice Jennifer A. Iyog, Cebu Pacific vice-president for marketing and distribution, said in a statement.

Cebu Pacific said the Philippines has become one of the fastest-growing tourist source markets for Australia, with an average 16% increase over the past four years, from 70,000 to 120,000.

The airline said that last year, it dominated the passenger market for Manila-Sydney flights during the first five months of the 2017, citing data from the Australian Bureau of Infrastructure, Transport, and Regional Economics, which showed that Cebu Pacific grabbed a 44% passenger market share of the Manila-Sydney route during the period.

“Melbourne is a great city to explore and increased flights will also bring more Australian tourists to the Philippines. This will also be welcome news to a quarter of a million Filipinos who now call Australia home, and the more than 10,000 students who travel there each year,” Amanda Gorely, ambassador of the Commonwealth of Australia to the Philippines, said in a statement.

The airline is focusing on servicing its high-demand Asia-Pacific destinations.

Last year, Cebu Pacific decided to stop its flights to Kuwait, Doha in Qatar, and Riyadh in Saudi Arabia because of increased competition in the said routes. — P.P.C. Marcelo

Twilight of the Goddesses

February 28, 2018 | 12:01 am

By Menchu Aquino Sarmiento

Theater Review
Manila Biennale Performance Night
Feb. 22, Casa Manila, Intramuros, Manila

AS ARTS MONTH this February was winding down, the first Manila Biennale Performance Night on Feb. 22 at the Casa Manila Teatrillo in Intramuros seamlessly segued into an anticipation of Women’s Month this March.

“I missed work for this,” breathlessly declared a 30-something female BPO customer service drone who had come alone, all the way from Sta. Rosa, Laguna. Her brief immersions in Philippine art were bright respites from the grey hours of call center drudgery. She barely arrived in time to purchase a pass for the opening performance by the West Coast-based art collective known as M.O.B. (Mail Order Brides) consisting of Rianne “Immaculata” Estrada, Jenifer “Baby” Wofford and Eliza “Neneng” Barrios. Unfortunately, Ms. Barrios was indisposed that evening but the two remaining femmes formidablé more than made up for her absence. Unlike our Filipina BPO worker trained to project a perpetual smile even over the phone, these two delivered their lines in dry terror teacher or ominous prison matron tones, through stiffly turned down raging red lips which seemed to suck the air out of the room. Imagine talking vagina dentatas. Another twist was that their office flunkeys were submissive males in corporate attire.

This was the Philippine premiere of Manananggoogle: Divide/Conquer, a send-up of corporate culture with the vision of “Opportunism for everyone.” It started with the audience being herded through two gender-segregated sections, cordoned off by thick red ropes held by students, as young as Grade 6. The kids, who all live around Intramuros, were dressed in flimsy mock hazmat suits and totally silent. They were themselves uncertain of what was going on, but dutifully held on to the ropes as instructed by “Ate” (big sister), the Manila Biennale (MNLBNL) staffer who had recruited them.

The audience remained standing as they were bombarded with a quick succession of flashing lights, disturbing images of raw meat, guts, the iconic image of the actor Malcom McDowell in Stanley Kubrick’s A Clockwork Orange with his eyes painfully propped open with pins, and a rope like the one dividing the audience — all against a dissonant soundtrack of grating engine noises, fingernails scraping against a blackboard, unnervingly piercing mechanical squeaks or high pitched electronic humming. Three women including a tiny girl were then randomly selected from the audience to demonstrate unlikely stances of female power. Afterwards, a cohort of males contorted their bodies into poses of male subjugation, as unlikely denizens of the “glass basement.”

There followed photo opportunities in another room. An excited man in cargo shorts fervently gushed that this brief experience of the gender order turned upside down had been unexpectedly liberating and reverently requested “groufies” with the two M.O.B.sters. Meanwhile, the stage was set for the most recent iteration of Carlos Celdran’s Livin’ la Vida Imelda which has been performed in various guises, including an early version in a local art gallery with a sort of Greek chorus, since 2012. That was the year Mr. Celdran turned 40. Yes, he is a Marcos martial law baby, born in 1972, who has spent much of the last half of his adult life thoughtfully examining how the quintessential Steel Butterfly has shaped our nation’s destiny and transformed the landscape of the reclaimed Manila Bay where he conducts one of his tours. In Japanese sign language, the word for “Filipina” is mimed with the butterfly sleeves of her signature terno. She represents us.

Next year the Imeldific turns 90 with nary a wrinkle on her apple cheeks, and a creaseless neck that is preternaturally supple and tight. She is still a player on the Philippine political scene, this time as the representative of Ilocos Norte’s 2^nd district, taking over a seat kept warm for the last three terms by her eldest daughter Imee, who is currently the governor of Ilocos Norte. Mr. Celdran gleefully repeats juicy tidbits about Governor Marcos’s paternity, the late president Marcos’ artificially enhanced abs, his alleged genital insecurities which led to the Dovie Beams debacle, and the Imeldific’s career as a beauty pageant title holder. These are just smidgens from an unwholesomely delectable smorgasbord of hilariously tawdry apocryphal anecdotes, highlights in Mr. Celdran’s coming of age under a dictatorship. He alternates between dishing and pensive musing on how we got to where we are as a nation, and where do we go from here.

Particularly enlightening was the Imeldific’s wont to refer to herself in the third person during a brief encounter she had with Celdran. This was when she launched an in-your-face costume jewelry line based on her own fabulous collection. It was the first and only time Mr. Celdran and Mrs. Marcos had ever met and spoken. Mrs. Marcos explained that the magnificent Coconut Palace was her way of showing Filipino peasants who lived in tumble-down huts with coconut trunk posts and palm frond thatch roofs, what they could do to upgrade their homes — given millions of pesos in construction and interior decoration funds, and the services of a top flight architect like Bobby Manosa, that is.

Perhaps it is her willful denial of the existence of a reality apart from her own Imeldific version of “the good, the true, and the beautiful” which makes Imelda R. Marcos so fascinating even on the world scene. Mr. Celdran sentimentally attributes the global phenomenon of Imeldophilia to her Cinderella-like life story. But like Imelda, Cinderella was always la hija de buena familia (daughter of a good family). The unscrupulous and overweeningly ambitious Claire Underwood in Netflix’s House of Cards may be closer to the Imeldific than any Disney princess.

The evening ended with a performance by Raquel de Loyola, a member of the all-female Kasibulan. Black and white archival photos of Intramuros’ devastation during World War II were projected on the bare stone wall, while unseen female voices sang Abelardo’s “Nasaan Ka Irog.” The invisible overlapping voices gave the eerie effect of unfathomable grief over haunting loss. Before our American overlords bombed it to perdition, the Manila of the old Intramuros had been among the loveliest cities in the Far East. This first MNLBNL was a poignant remembrance of what had been and a brave declaration of what we might become. Our past is prologue.

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