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Top Japan fashion site bets big on private brand, body scanning

THE KEY to a perfect fit with Start Today’s new clothing line hinges on the Zozosuit, a polka-dot studded bodysuit that lets users measure their proportions with a smartphone camera.

JAPAN’S largest e-commerce company is betting that it has found the key to selling clothes online: a size-measuring bodysuit and its own line of clothing.
Start Today Co., which runs a shopping site in Japan called Zozotown that’s popular with younger consumers, unveiled its own made-to-fit private label T-shirts, jeans, and business suits as it pushes deeper into web-based apparel sales. The clothes are meant to be sold to customers using a body-scanning suit and app developed by the company, which is renaming itself Zozo Inc. from October.
Selling clothing online has been a big challenge for web retailers because sizes, colors, and looks are hard to gauge on the web. Sellers often offer free returns to spur purchases, but that also drives up costs and risks alienating customers. Start Today’s billionaire founder Yusaku Maezawa is betting that his strategy of offering made-to-fit apparel will help it expand overseas and quintuple its market capitalization in the next decade.
“Anyone in the world can relate to worries about clothing size,” Maezawa, 42, said in an interview. “When we looked overseas, we couldn’t find any companies that were offering lower-cost clothing that fit well. There was a need for that.”
Amazon.com Inc., which has been making an aggressive push into online apparel, last year bought Body Labs, a 3-D body-scanning start-up that lets people create a digital avatar of themselves to try on virtual clothes. In response to Start Today’s announcement of private brand men’s business suits and dress shirts — offered at a discounted ¥24,800 ($225) for a limited time — shares of Japanese suit sellers Aoyama Trading Co. and Aoki Holdings Inc. fell on Tuesday last week.
The key to a perfect fit with Start Today’s new clothing line hinges on the Zozosuit, a polka-dot studded bodysuit that lets users measure their proportions with a smartphone camera. Sales initially started with T-shirts and jeans, and the company added men’s business suits to its lineup. It also announced that the service and private brand would be available in 72 countries including the US by the end of July.
“If they can build a successful apparel-selling platform based on body measurements data, it can be huge,” said Akira Iwasaki, an analyst at Iwai Cosmo Securities Co. in Tokyo who has a buy rating on Start Today.
The growth plan is a big bet for a company that gets about 90% of its sales by providing a marketplace for clothing by other brands. Maezawa said Start Today is looking at potential acquisitions that could improve its measuring technology and production capabilities. While Rakuten Inc. is often seen as Japan’s home-grown e-commerce pioneer, Start Today is bigger, with a market capitalization that’s 25% higher at ¥1.3 trillion.
The company created a unit Start Today Research this year to acquire ideas and technologies related to fashion and clothing fit. It also made headlines in Japan in April when it offered annual salaries of as much as ¥100 million to find employees specializing in fields such as artificial intelligence, robotics and cryptography. — Bloomberg

GERI expects P1.2 billion in sales from residential condo in Laguna

GLOBAL-ESTATE Resorts, Inc. (GERI) expects to generate P1.2 billion in sales from its newly launched residential property in Southwoods City in Laguna, following the strong take-up for its first project in the estate.
The leisure and tourism subsidiary of Megaworld Corp. said in a statement over the weekend that it will be launching Tulip Gardens, a 22-storey residential condominium project in Southwoods City in Biñan, Laguna.
The development will offer studio units covering up to 28.5 square meters (sq.m.) and one-bedroom units reaching up to 41 sq.m., for a total of 372 units spread out over five mid-rise buildings.
Amenities include jogging paths, picnic areas with cabanas and pavilions, indoor playroom, two outdoor playgrounds, a fitness center, a lap pool, a kiddie pool, and a multipurpose hall.
Some units will also have their own lanai which can give residents a view of Southwoods City, Laguna, and Cavite.
“Tulip Gardens is an innovation in residential high-rise living, where leisure and relaxation take center stage in a community setting. We are providing more amenities so that our residents will feel like they live in a resort,” Megaworld Global-Estate, Inc. Vice-President for Sales and Marketing Mary Rachelle I. Peñaflorida said in a statement.
The newest development inside Southwoods City will be located near the newly opened Southwoods Mall and the Sto. Niño de Cebu Parish, and can be accessed through the Southwoods exit of the South Luzon Expressway.
The listed firm targets to complete the project by 2023.
Tulip Gardens is GERI’s second residential project in Southwoods City, following the launch of Holland Park back in 2014. The company said Holland Park has so far sold P2.7 billion worth of units from its four towers.
“The spike in the demand for residential condo units in Southwoods City was a big surprise considering that the township has been known for its vast horizontal residential villages like Pahara,” Ms. Peñaflorida said, referring to the 26-hectare upscale residential village inside Southwoods City that was launched in 2014.
The GERI executive added that they have so far sold out more than 600 units of Holland Park, and that “the demand for more units continues to grow.”
Southwoods City is a 561-hectare township of GERI’s sister firm Megaworld, which is being positioned as the next central business hub outside Metro Manila.
GERI booked P406.9 million in net income attributable to the parent during the first quarter of 2018, up by a fourth than the P325.8 million it realized during the same period a year ago. Revenues, meanwhile, were flat at P1.66 billion.— Arra B. Francia

Peso to move within tight range after positive US data

THE PESO will likely move sideways against the dollar this week on the back of likely mixed economic data in the United States and as well as potentially weak Philippine trade figures.
The peso ended the week at P53.42 against the greenback, flat from its close on Thursday.
Week on week, Friday’s closing rate was however weaker than the P53.34-per-dollar finish on July 1.
“We’re expecting the peso to continue to trade within a very tight range this week as the market will take cue from the US unemployment data,” a trader said in a phone interview on Friday.
The US economy added 213,000 jobs in June, data released on Friday showed, versus the 195,000 market expectation in a Reuters poll.
However, unemployment rose to four percent in the same month as more people sought new jobs.
“The latest US labor reports were strong enough to confirm the health of the US economy, but not excessively upbeat to fuel speculations of even more aggressive moves from the US Federal Reserve,” Land Bank of the Philippines market economist Guian Angelo S. Dumalagan said in an e-mail.
Despite the mixed labor report, analysts said trade concerns will continue to weigh on market sentiment.
The $34 billion worth of tariffs on Chinese goods slapped by US President Donald J. Trump took effect on Friday. In return, China said imported US goods including cars, soybeans and lobsters facing 25% levies, Reuters reported.
“While the trade war between the US and China could support safe-haven demand, the dollar might not fully benefit from it…as investors over the weekend focused their attention more on the possible negative impact of the trade war on the US economy,” Mr. Dumalagan said.
Toward the end of the week, Mr. Dumalagan noted the dollar might rebound against the local unit due to possibly strong US reports on producer and consumer price inflation and a potentially wider local trade deficit.
“While the possible widening of the Philippine trade deficit is a reflection of the country’s upbeat investment spending, some market participants might interpret the report negatively, looking at its subtractive role in the expenditure approach in computing gross domestic product,” he said.
For this week, the trader sees the peso to move between P53.30 and P53.55, while Mr. Dumalagan gave a wider P53-P53.60 range. — Karl Angelo N. Vidal

DoTr: China’s Dalian should pay for technical adjustments on MRT trains

THE Department of Transportation (DoTr) insisted that Chinese firm CRRC Dalian Co. should pay for the cost of any technical adjustments required to accommodate the 48 new trains for the Metro Rail Transit Line 3 (MRT-3).
Transportation Secretary Arthur P. Tugade met with officials from Dalian last week to discuss the results of the audit conducted by certifier TUV Rheinland of the train sets.
“Dahil doon sa pag-uusap na iyon, nagkasundo ‘ho na kung may mga dapat gawin at dapat lamang na gawin, kung gusto natin gamitin, lahat ‘ho ng gastusin na iyon ay a-absorb-in ng Dalian without a single cent of expense from the Philippine government [Because of that discussion, we have agreed on what to do if we want to use the trains. All the expenses for that would be absorbed by Dalian without a single cent of expense from the Philippine government],” Mr. Tugade said in a statement.
The DoTr referred to the results of the audit, which showed Dalian trains could still be used on the MRT-3 if adjustments are made.
“Kapag nirepaso mo ’yung evaluation, para bang sinasabing pag ito’y naisaayos sa tamang pamamaraan, puwede mo pang magamit ’yung bagon at tren without sacrificing the safety, the security and life of the passengers and the system [If you review the evaluation, it seems to say when the issues are fixed properly, the coaches and trains could still be used without sacrificing the safety, the security and life of the passengers and the system],” Mr. Tugade added.
He noted the problems concern variations in the measurements and weight of the new trains.
Despite this, Mr. Tugade said the work needed to be done on the Dalian trains is “manageable.”
The governments of the Philippines and China will meet on Aug. 20 to specify the details of the adjustments needed to be done by Dalian.
The trains from Dalian were purchased by the Aquino administration, meant to be additional coaches on the MRT-3. The DoTr earlier said the trains could not be used because of incompatibility with the system, and ordered an independent audit by TUV Rheinland. — Denise A. Valdez

GSIS sets minimum rating for reinsurance bidders

GOVERNMENT SERVICE Insurance System (GSIS) is now requiring firms wishing to join the pension fund’s bidding for reinsurance contracts to carry a minimum credit rating of B+.
In a statement, the state pension fund said potential bidders are now required to submit a proof of a credit rating of at least B+ from rating firm A.M. Best.
“[I]t is vital to set a minimum credit rating as a requirement for potential bidders of reinsurance contracts. In this way, we are confident that our reinsurers can meet their financial obligations when they fall due,” GSIS President and General Manager Jesus Clint O. Aranas was quoted as saying in the statement.
According to A.M. Best’s Financial Strength Rating guide, a “B” rating is assigned to firms that have “a fair ability to meet their ongoing insurance obligations.”
Aside from this, the securities or panel of reinsurers, whether foreign or local, should be rated at least “A” by A.M. Best. The foreign securities or panel of reinsurers must be authorized to transact in the Philippines through their resident agent.
Mr. Aranas said the pension fund’s reinsurance contracts undergo public bidding to ensure that all potential reinsurance companies have access to fair and transparent bidding process.
Under Republic Act No. 656 or the Property Insurance Law, government units, agencies, commissions and state owned and controlled firms are required to insure their properties with GSIS against an insurable risk and pay the corresponding premiums. — KANV

DA studying rubber partnership with Papua New Guinea

THE Department of Agriculture (DA) said it is is studying a parnership with Papua New Guinea for the development of the rubber industry.
Agriculture Undersecretary for Agribusiness and Marketing Assistance Service (AMAS) Jose Gabriel M. La Viña told BusinessWorld in a chance interview that a collaboration is a “new possibility to look into” after Papua New Guinea Rubber Board Chairperson Josephine Kenni on Wednesday last week paid a visit to the DA.
“They’re looking at the same thing — how they can upstream their own rubber and plant more. Maybe we can get Filipino investors there to plant so maybe that’s something we can work together with them,” he added.
Mr. La Viña was appointed in June with a brief to develop the rubber industry.
“(Secretary Emmanuel F. Piñol) is not happy about how our rubber is being bought very cheaply and comes back here very expensive in [the form of] tires,” Mr. La Viña said.
The Philippine Statistics Authority (PSA) said raw rubber exports in the four months to April dropped by 42.3% to $23.90 million while rubber manufacture imports in the same period rose 3% to $191.62 million.
AMAS wants to recruit more processors and manufacturers to locate in the Philippines, preferably closer to or in Mindanao, where the rubber industry is located.
Prior to the prospective rubber partnership, the Philippines and Papua New Guinea in March agreed to collaborate in rice production, with companies from the Philippines planting rice on a 100-hectare demonstration farm in Papua New Guinea.
According to the Philippines’ industry road map for rubber, the government has a revenue target of P100 billion by 2030.
The 2017-2022 road map also hopes to increase rubber exports by 10% while establishing a tire manufacturing facility in Mindanao.
The government, however, found that the land formerly allotted for planting rubber was used instead for bananas or cash crops.
Despite this, PSA reported that the first quarter of 2018 saw rubber (cup lump) production go up by 4.4% to 45,370 metric tons due to more tappable trees in North Cotabato and Zamboanga Peninsula. The bulk of the country’s rubber was sourced from Soccsksargen. — Anna Gabriela A. Mogato

When a physical therapist designs a pillow, it can get very interesting

THE PRIGINA: Mr. Big pillow is called the “9” after its shape.

BANGKOK-BASED sleep essentials brand, Mr. Big, known for “physical therapist-designed pillows” for “ergonomic comfort” has arrived in the Philippines hoping to improve Filipino’s sleep quality.
“There’s this wellness movement that is happening globally and that includes people wanting to have a really good night’s sleep,” Tom Castaneda, AVP for Marketing at SM Home, told BusinessWorld during the launch in June 21 at SM Makati.
“In recent years, we noticed that linens are really important for our customers. We saw an increase in pillowcases [sales] and mattresses do really well,” he said, before adding that this is likely because more and more people are renting or buying condominium units.
Mr. Castaneda said they thought of bringing Mr. Big to the country because “the items are really well thought out and are designed by a physical therapist.”
Mr. Big founder, Chawakit Kaoien, was formerly a physical therapist who was working in the intensive care unit (ICU) of a hospital’s respiratory unit. It was because of his responsibility to ensure that critical care patients in this unit could breathe properly and were comfortable that he was said to have “mastered the clever positioning of pillows.”
“To improve the condition of my patients, as well as their quality of life, I would arrange their sleeping positions for various purposes such as to reduce pressure and soreness, to ease pain, to promote blood circulation, and many more,” Mr. Kaoien was quoted as saying in a press release.
He then created what he calls the “9” pillow (named for its shape) which offers an “ergonomic solution for those who prefer to sleep on the sides” as it provides support “in all the right places, ensuring a much more comfortable and restful sleep that won’t result in body aches the next day,” said a company press release.
Aside from the “9” pillow, Mr. Kaoien also created several other pillows, plus duvets and mattresses meant to cater to people of different needs, sleeping habits, and demographics.
Before buying a custom pillow, staff are supposed to input a person’s height, weight, as well as preferred sleeping position (side, back, or stomach) in an app which then recommends the most suitable pillow for the customer.
The pillows are stuffed with “Elasta Fiber,” a material imported from the UK that is said to provide “optimum cushioning and tension and does not clump over time. Pillow shells are 100% cotton, hypoallergenic and dust mite resistant,” said the release.
“The Philippines is quite like Thailand in body size and shape, so the products we offer are suitable here,” Mr. Kaoien told BusinessWorld shortly before the launch.
The brand is currently in six markets in Asia — Thailand, Vietnam, Malaysia, Korea, the Philippines, and Hong Kong — but Mr. Kaoien revealed that they are already setting their sights beyond the region with Australia and the US coming next.
Though he refused to say when they are going to expand into these markets, he said they would have to create and adjust their products to fit the Australian and US markets because the people there are generally bigger than their Asian counterparts and “have different preferences.”
“I have to do a lot of homework [before the expansion],” said Mr. Kaoien.
Mr. Big is currently available in SM Home stores in SM Makati, SM Aura, SM Megamall, and SM Mall of Asia. — Zsarlene B. Chua

Yields on gov’t debt mixed

By Jochebed B. Gonzales, Senior Researcher
YIELDS saw mixed movements last week as investors priced in the escalating trade war between the US and China and after domestic inflation reached a fresh five-year high.
Prices rose as yields on government securities dipped by 6.16 basis points (bps) on the average week on week, data from the Philippines Dealing and Exchange Corp. as of July 6 showed.
“There were two main factors that affected yields [last] week: the US-China trade war and the country’s higher-than-expected inflation,” said Land Bank of the Philippines (LANDBANK) market economist Guian Angelo S. Dumalagan.
“The influence of lingering trade tensions more than offset the impact of the country’s upbeat inflation data, resulting in an overall downward bias in interest rates,” he added.
Last week, the US began slapping 25% customs duties on $34 billion worth of Chinese commodities to which China responded by also imposing 25% border tax on the same amount of American goods that enter their country.
Meanwhile, domestic prices rose at a rate fastest in at least five years in June, the Philippine Statistics Authority reported on Thursday. The 5.2% headline print was beyond market and government expectations.
“Last month’s higher-than-expected inflation increased the yields of some tenors. While market participants expected inflation to pick up, many were surprised that inflation breached the BSP’s forecast range for the month, an occurrence which increases the chances of more rate hikes from the BSP this year,” said Mr. Dumalagan.
Also last week, the Bureau of the Treasury (BTr) rejected all bids for the reissued 10-year bond after investors demanded higher rates for the said tenor. The offer was also undersubscribed, attracting only P14.84 billion in tenders against the P15 billion programmed by the government.
“The 10-year auction rejection due to elevated bids and the higher than expected CPI (consumer price index) data at 5.2% versus market consensus at 4.8% led to more defensive levels and greater selling interest from end clients and market participants,” said Carlyn Therese X. Dulay, first vice-president and head of institutional sales at Security Bank Corp.
A bond trader agreed, saying some investors had “unloaded” after inflation was “way too far” from market expectations.
At the secondary market on Friday, the yield on the 91-day Treasury bill (T-bill) saw the steepest decline, losing 64.32 bps to close with 3.2639%.
It was followed by the 10-year Treasury bond (T-bond) which shed 6.69 bps to fetch 6.3548%. Yields on the three- and four-year tenors decreased by 4.57 and 2.32 bps, respectively, to 4.9766% and 5.6536%, while that of the 91-day T-bill dipped 1.99 bps to 3.8254%.
On the other hand, ending the week with gains were the 364-day T-bill and the two-, five-, seven- and 20-year T-bonds which went up 8.83 bps, 2.17 bps, 2.80 bps, 4.26 bps and 0.18 bp, respectively, to finish with 4.5625%, 4.8059%, 5.79%, 6.2908% and 7.3625%.
This week, the market will take its cue from the results of the US Bureau of Labor Statistics employment survey for the month of June, said Security Bank’s Ms. Dulay.
LANDBANK’s Mr. Dumalagan said players will also monitor external developments, particularly in the US and China.

China roots for last US soybean cargo to land before tariffs kick in

BEIJING — It is not often that the niche world of commodities trading enters the public conversation, but on Friday China’s social media was rooting for a ship carrying soybeans from the United States to beat the deadline before Chinese tariffs kicked in.
Tracking the journey of the vessel, Peak Pegasus, as it motored toward the northern Chinese port of Dalian was the 34th highest trending topic on the country’s Twitter-like Weibo on Friday, beating out the World Cup, showbiz gossip and Beijing’s escalating trade war with Washington.
Reuters was the first to report on the final stages of the vessel’s one-month voyage to China as the countdown began for the United States and China to impose their tit-for-tat duties on $34 billion worth of each other’s goods.
Weibo users offered encouragement and support to the cargo, which left Seattle on June 8, as it became uncertain whether the ship would dock and unload its cargo before noon on Friday when the new tariffs took effect.
“Good luck bro!” said one Weibo user.
“You are no ordinary soybean!” said another.
Soybeans are the top US agricultural export to China, with the trade worth $12.7 billion in 2017.
Last week, the Peak Pegasus had been scheduled to land with just hours to spare, according to Thomson Reuters Eikon shipping data. Its arrival was pushed back in recent days to 5 p.m. (0900 GMT) on Friday.
Alas, the Peak Pegasus fell short. At 5:30 p.m., it was at anchor near Dalian, missing the noon deadline.
The comments showed how aspects of Beijing’s rift with Washington have seeped into the public consciousness. They also offered a rare moment of humor in an increasingly acrimonious row between the world’s top two economies.
Chinese state media have slammed the protectionist policies of US President Donald Trump and on Friday likened his administration to a “gang of hoodlums,” but the trade conflict has gained little traction on China’s tightly controlled social media.
Still, one Weibo user with tongue firmly in cheek worried that the soybeans might get seasick, while another offered the beans some wry advice on how to avoid getting snarled up in the deepening row.
“Poor little soybeans. Try to become a bean sprout, maybe it’s not on the tariff list,” the user said.
One post offered to take the beans on a romantic break to Turkey.
It is not the first time the Peak Pegasus has had a starring role in Beijing’s trade showdown with Washington. In April, the ship detoured to South Korea from southern China after the country imposed hefty margin deposits on imports of US sorghum, a grain used to make liquor and animal feed. — Reuters

Stephen Ditko, Spider-Man co-creator, 90

NEW YORK — US comics artist Stephen Ditko, co-creator of Marvel superheroes Spider-Man and Doctor Strange, has died. He was 90.
Police in New York said he was found in his apartment on June 29, according to the Hollywood Reporter. No cause of death has been confirmed.
Born in 1927 in Johnstown, Pennsylvania, Ditko worked alongside the then-future Marvel Comics CEO Stan Lee in the early 1960s. It was Ditko who came up with Spider-Man’s iconic red and blue suit, complete with web-shooters.
“Today, the Marvel family mourns the loss of Steve Ditko. Steve transformed the industry and the Marvel Universe, and his legacy will never be forgotten,” Marvel Entertainment President Dan Buckley said in a statement Saturday.
Ditko, a reclusive figure who is thought to have never married, had left Marvel by 1966, reportedly due to a disagreement with Lee.
He went on to work for other publishers — including DC Comics, where he created characters such as The Creeper — but did draw for Marvel again from in 1979.
“Of course, he is best known for co-creating Spider-Man but he also ushered in a slew of unique, very personal and eclectic characters for DC such as the Question, Blue Beetle, Hawk and Dove, and more,” said DC Entertainment Chief Creative Officer Jim Lee on Twitter.
“Polite and unassuming — he never sought attention or the limelight but in many ways represented the hidden hero he saw in all of us,” he added.
Elsewhere on social media, fans paid tribute to Ditko alongside images of his work — hailed by many for its unique, zany style.
“RIP to comic book legend Steve Ditko, beyond influential on countless planes of existence,” wrote film director Edgar Wright, whose works include Shaun of the Dead (2004).
Meanwhile, author Neil Gaiman reflected: “Steve Ditko was true to his own ideals. He saw things his own way, and he gave us ways of seeing that were unique. Often copied. Never equalled.” — AFP

Maynilad completes upgrade of sedimentation basin at La Mesa


MAYNILAD Water Services, Inc. has completed the upgrade of a sedimentation basin at La Mesa treatment plant 1 in Quezon City, the west zone water concessionaire said.
“While there are 11 more basins to go, this is a significant milestone in the rehab project of La Mesa and our ability to respond to the challenges of climate change,” said Maynilad Chief Operating Officer Randolph T. Estrellado in a statement on Sunday.
The sedimentation basin is part of the company’s P7-billion rehabilitation project for Maynilad’s La Mesa treatment plant 1 and 2, which produce about 2,400 million liters of water per day to serve about nine million customers.
The 12 sedimentation basins at treatment plant 1 are being fitted with tube settlers and sludge scrapers. This increases the plant’s capacity to address high turbidity in the raw water during the rainy season.
“We are upgrading one basin at a time, because we cannot shut down the plant and interrupt water service to give way to the rehabilitation work,” Mr. Estrellado said.
The rehabilitation of the basins is being done in phases to not disturb plant operations during the upgrades.
Aside from rehabilitating the sedimentation basins to improve treatment capacity, other upgrades being done at the La Mesa treatment plant 1 and 2 are the retrofitting of structures for enhanced earthquake resiliency, and the automation of processes for more reliable operations.
“The rehab project is targeted for completion in 2020,” the company said.
Maynilad serves certain portions of the cities of Manila, Quezon and Makati. It also covers Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon in Metro Manila.
Outside the Philippine capital, it serves the cities of Cavite, Bacoor and Imus, and the towns of Kawit, Noveleta and Rosario, all in Cavite province.
Metro Pacific Investments Corp., which has majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.
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. — Victor V. Saulon

Stocks to move sideways ahead of Q2 earnings

By Arra B. Francia, Reporter
THE Philippine Stock Exchange index (PSEi) is likely to continue trading sideways this week as investors anticipate second-quarter results that could push trading volume higher.
The bellwether PSEi dropped 0.64% or 46.86 points to end at 7,186.71 on Friday following the release of inflation data for June, which turned out to be much higher than expected.
The Philippine Statistics Authority reported that inflation picked up to 5.2% last month, a fresh five-year high that beat the local central bank’s estimate range of 4.3-5.1% and the Department of Finance’s 4.9% estimate, as well as the 4.7% median in a BusinessWorld poll.
On a weekly basis, the index ended 6.97 points lower or 0.10%, with the industrial sector losing the most at 0.80%, versus the 1.6% gain of the services counter. Turnover slowed to P4.92 billion on average per day, lower by 22% from the week before.
“We started the month slow ending almost unchanged from the close in June. However, the index held support at 7,150 which is impressive despite the very low trading volume that we saw this week. Based on the technicals, the index will continue to trade sideways,” Eagle Equities, Inc. Research Head Christopher John Mangun said in a weekly market note.
Given higher inflation, online brokerage 2TradeAsia.com said people will be tightening their belts or at least cut back on non-essentials. This should prepare investors to put their money in assets with “good inflation hedge.”
“In equities, these are common in real estate assets and companies with solid recurring income sources… While controlling inflation rests on the hands of competent economic managers, it would be best to stay defensive by carefully selecting stocks anchored on business models where demand is supported,” 2TradeAsia.com said in a weekly market note.
Sectors with such demand include food and beverage, telco services, utilities, and fuel.
Philstocks Financial, Inc. said last week that good companies to invest in would be those with strong leasing income streams, such as SM Prime Holdings, Inc., Ayala Land, Inc., Megaworld Corp., and DoubleDragon Properties Corp.
Abroad, leads include developments on the trade war between the United States and China. While analysts noted the trade war has no direct impact on Philippine exports, it still continues to weigh on investor sentiment.
“All told, investors are simply scouting for opportunities to re-enter once negative headlines are fully absorbed. In the meantime, eyes are on first-half results and whether listed firms remain on track with their second-half prospects,” 2TradeAsia.com said.
Eagle Equities’ Mr. Mangun placed the index’s immediate support at 7,070, with resistance at 7,340.
“It’s all going to come down to volume, if we see more volume come in then we may end higher but if we get another low-volume week then we will see it come down even further,” Mr. Mangun said.

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