Local stocks slump amid global rout

February 9, 2018 | 6:56 pm

By Arra B. Francia, Reporter

LOCAL stocks took another beating on Friday, tracking the bloodbath in international markets as investors resumed profit taking.

The main index dropped 1.64% or 141.39 points to finish at 8,503.69 on Friday, less than 300 points down from its previous week’s finish. The broader all-shares index also gave up 1.3% or 66.29 points to 5,028.38.

“Philippine stocks retreated deeper into negative territory as Wall Street tangled with further volatility, with concerns about rising inflation and bond yields weighing on investors’ psyche against the backdrop of a relatively healthy domestic economy,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said.

Global markets recorded even greater losses on Wednesday, with the Dow Jones Industrial Average plummeting by 1,032.89 points or 4.15% to end at 23,860.46. The S&P 500 index dropped 3.75% or 100.66 points to 2,581, while the Nasdaq Composite index was down by 274.82 points or 3.9% to 6,777.16.

“Basically it was carried by the US market being soft last night, but technically the way I look at it is the short term is trying to support itself right now at this level, even in the United States,” Summit Securities, Inc. President Harry G. Liu said in a phone interview.

Mr. Liu noted the market’s descent is a serious correction as it has gone up quite extensively since mid-2017. Fundamentals of companies however, remain intact.

“There’s no change in economic situation, so this will just be part of profit taking due to both US and our market have gone up extensively,” he said.

Regina Capital’s Mr. Limlingan meanwhile noted some investors have raised concerns after the Bangko Sentral ng Pilipinas raised its inflation forecast to 4.3% for full year 2018.

No sectoral counter was spared from the day’s sell-off. The property sub-index lost 2.45% or 96.24 points to 3,824.11, followed by holding firms that slowed 1.57% or 137.01 points to 8,615.28. Industrial slipped 1.25% or 146.19 points to 11,566.15; mining and oil shed 0.99% or 114.51 points to 11,424.21; financials dipped 0.95% or 20.91 points to 2,184.54; while services shed 0.91% or 15.52 points to 1,696.39.

Most stocks declined for the day, 138 versus the 64 that went up, while 46 names were unchanged.

The market’s value turnover stood at P8.62 billion after some 1.35 billion issues switched hands.

Foreigners continued their selling streak for the 11^th day, even as net outflows slimmed to P136.8 million on Friday, against the P556.3 million recorded in the previous session.

Peso drops on weak trade data

February 9, 2018 | 6:55 pm

THE PESO weakened further against the dollar on Friday as the country’s trade deficit expanded in December.

The local currency closed the week at P51.48 versus the dollar, down 17 centavos from its P51.31 finish on Thursday.

The peso traded weaker the whole day, opening the session at P51.58 against the greenback. It hit a low of P51.79 intraday, while its best showing was at P51.43 per dollar.

Dollars traded spiked to $1.17 billion from the $896 million that changed hands in the previous trading session.

“[The] peso weakened because of the wider trade deficit in December… the market responded negatively to the data release,” Ruben Carlo O. Asuncion, chief economist of UnionBank of the Philippines, told BusinessWorld in a mobile phone message.

Philippine Statistics Authority (PSA) data released on Friday showed that the country’s trade deficit widened to $4.02 billion in December from the $2.47 billion recorded a year ago and the $3.78 billion booked in November.

Imports grew to $8.74 billion by 17.6% from $7.43 billion a year ago.

Meanwhile, outbound shipments contracted to $4.72 billion by 4.9% from $4.96 in December 2016. This was due to fewer exports of coconut oil, ignition wiring and other wiring sets used for vehicles, aircrafts and ships, other manufactured goods and metal components, preliminary data from PSA showed.

Still, the wider trade deficit is “fundamentally not a concern,” Mr. Asuncion said.

“It’s not a concern because these are basic signs of a growing economy. The Philippines is a growing one and investments have to grow rapidly to propel it to a higher growth trajectory.”

“[The speech of some Fed officials] increased the likelihood of a policy rate hike by the Fed in March,” another trader added. — K.A.N. Vidal

Giant travel fair runs this weekend

February 9, 2018 | 6:33 pm

THIS year’s Travel Tour Expo (TTE) is the biggest in its 25 years existence as it occupies the entire SMX Convention Center — 16,230-square meters of exhibition space — in Pasay City. It runs from Feb. 9 to 11.

Expo has close to 400 exhibitors — 28 airlines, 133 hotels and resorts, 94 travel agencies, five cruise lines, and seven theme parks around the world.

The Philippine Travel Agencies Association (PTAA) said in a press release that they are expecting around 140,000 people to troop to the convention center over the weekend in search of deals over the weekend.

“Year after year, our countrymen have come to know the TTE as the venue where they were able to book their travels for an entire year. The expo [has] impacted the way Filipinos plan their travel,” Marlene Dado Jante, PTAA president and TTE 2018 chairperson, said during the exposition’s launch on Feb 8 at the Conrad Hotel Manila.

Aside from the expo at the first floor of the convention center, the PTAA will also hold its third International Travel Trade Expo, its business-to-business program, this weekend.

Ms. Jante said in her message that they will be joined by 84 sellers from 16 countries and by more than 250 travel agency buyers from the all over the country for the trade expo.

“[TTE] has allowed our people to become more sophisticated in choosing their travel program, designing their itinerary, planning ahead for vacation, and even selecting destinations,” Rolando Canizal, undersecretary of the Department of Tourism said during his keynote address at the launch.

The 25th Travel Tour Expo runs from Feb. 9 to 11 at the SMX Convention Center in Pasay City. Doors will open at 9:30 a.m. and the fair runs until 8 p.m. General admission tickets are P70 per person while senior citizen rates is P50. — Zsarlene B. Chua

TAGS: Travel Tour Expo, tourism, travel, SMX, travel agencies, airlines

McLaren, other supercars in custody still under litigation — Customs

February 9, 2018 | 5:54 pm

Twenty-two brand new luxury vehicles including high-end sports cars known as supercars which were intercepted on separate occasions at the Manila International Container Port (MICP) are the subjects of ongoing litigation at the Bureau of Customs.

One McLaren, two 2017 Chevrolet Camaro, two 2017 Range Rover, one 2017 Land Rover Evoque, 12 units Toyota Land Cruisers — all consigned to Gamma Gray Marketing — are undergoing legal proceedings, according to a Bureau of Customs press release. The MICP Law Division is expected to resolve the dispute.

Meanwhile, a 2005 Ferrari F430 2006 and a Lamborghini Murcielago consigned to Mary Joy Aguanta and Veronica Angeles, respectively, were declared forfeited in favor of the government by the MICP. However, the case is under appeal proceedings after the importers filed an appeal.

A Lamborghini Gallardo and a Rolls Royce consigned to Allan Usman Garcia and Roy Garchitorena, respectively, were intercepted in February 2018 and are now under examination and verification of import documents. Customs said warrant of seizure and detention will be issued once the customs authorities find a probable cause to issue the same.

Customs chief Isidro S. Lapeña said in the press release that the bureau will be steadfast in facilitating the disposition of the said cases. He also dispelled doubts and rumors from the public as to what happened to the supercars such as the McLaren and Lamborghini seized by the government last November and why these were not included in the demolition conducted on Feb. 6 in the Port of Manila.

“There are still a few who do illicit activities at the Bureau of Customs. This has to stop. We will not allow smugglers to blatantly disregard our laws, rules, and regulations on importation. The Bureau of Customs will be drastic in its efforts to combat smuggling and all forms of corruption,” Mr. Lapeña said.

Cemex reports 65% drop in earnings for 2017

February 9, 2018 | 5:15 pm

Earnings of Cemex Holdings Philippines, Inc. (CHP) was cut by more than half in 2017, as higher cement volumes sold for the period failed to offset the continued drop in cement prices.

In a presentation to investors, the company said net income was down by 65% to P659 million in 2017, against the P1.87 billion it recorded a year ago. Operating EBITDA (earnings before interest, taxation, depreciation, and amortization) also declined by 50.7% to P3.3 billion, compared to P6.7 billion in 2016.

“Lower prices was the main reason for the decrease, as well as higher fuel and distribution costs,” the company said. — Arra B. Francia

Trade deficit widens in December

February 9, 2018 | 5:01 pm

Trade deficit continued to widen in December, bringing the gap to another record high as exports contract for the first time in more than a year and as imports post double-digit growth.

Exports declined by 4.9% to $4.721 billion in December, a turnaround from the previous month’s 2.7% growth and the 6.6% posted in the same month in 2016. This was the worst turnout since the 10.9% contraction in July 2016. The last time exports posted a decline was in Nov.2016 when it recorded a 4.5% contraction.

The latest merchandise export figure brought full-year receipts to $62.875 billion, up 9.5% from 2016’s $57.406 billion, surpassing the government’s 5% target for the year.

In December alone, the country’s trade deficit reached a record-high $4.017 billion as imports exceeded exports. The country’s import bill increased 17.6% to $8.738 billion in December, slower than the 20.1% seen in the previous month and 19.0% in December 2016. 2017 saw a 10.2% merchandise import growth, few points higher than the 10% official target for 2017.

Hong Kong is the Philippines’ top export market in December with a 16.7% market share at $789.61 million. On the other hand, China– with an 18.9% share – was the country’s top source of imports. — Christine Joyce S. Castaneda

Philippines’ tourist arrivals hit 6.6 million in 2017, up by 11%

February 9, 2018 | 4:41 pm

THE DEPARTMENT of Tourism (DoT) reported on Jan. 31 that foreign tourists arrivals hit 6.6 million in 2017, 11% higher than the previous year’s 5.97 million.

The country bested the average tourism growth of Asia and the Pacific, which is at 6%, and Southeast Asia (8%), the DoT said, citing data from the United Nations World Tourism Organization (UNWTO) World Tourism Barometer.

In a press release posted on the DoT website, Tourism Secretary Wanda Tulfo-Teo cited the numbers as “milestone” for the agency despite the “political noise, security concerns, and travel advisories” that affected the tourism industry last year.

Based on the National Tourism Development Plan (NTDP), the DoT has set a target of 6.5 million arrivals for 2017.

South Koreans remained the Philippines’ top tourism market last year with arrivals numbering 1.6 million, almost a quarter of the total tourist arrivals. Boracay and Cebu were the top destinations for South Koreans.

The market for tourists from China was observed to have remarkable 43% growth, with the DoT citing as growth drivers the improved ties between the Philippines and China, added air routes, and the Visa Upon Arrival (VUA) option for Chinese nationals.

For 2018, the DoT projects 7.4 million tourist arrivals with sports and adventure tourism taking centerstage this year as the country hosts Strongest Man, the Iron Man, and other sports-related events.

Where to watch indie films in Metro Manila

February 9, 2018 | 3:20 pm

These are the microcinemas in Metro Manila that provide alternative and more intimate venues for independently produced films to be screened.

Read the full story.

No special treatment for China in Philippine Rise, Palace defends

February 9, 2018 | 1:55 pm

THE GOVERNMENT has belied allegations by critics on Thursday, Feb. 8, that it gave special treatment to the People’s Republic of China on its request to conduct a maritime study on the Philippine Rise.

“The Philippine government gave no preferential treatment to China on its request to conduct maritime scientific research (MSR) at Philippine Rise and did not reject the French Tara Expedition Foundation on similar venture contrary to claims by a solon,” National Security Adviser Hermogenes C. Esperon, Jr. said in a media statement.

He added: “China has submitted 18 MSR applications for Philippine Rise underwater exploratory mission but only two were granted.”

According to Mr. Esperon, aside from a French research group, “five other foreign countries including China have submitted applications to conduct marine scientific research at Philippine Rise and in the Luzon Strait Areas—United States, Japan, Korea and Germany.”

“The government granted China’s MSR at the Philippines Rise on a short duration venture without prejudice to the country’s territorial integrity contrary to insinuations by other sectors,” the national security adviser said.

“Of the five countries, the US has the most number of MSR request which the government granted all of its 13 applications; Japan has nine MSR, all of which were granted; Korea, four, all granted; except for Germany whose two MSR applications were denied.”

Last Tuesday, President Rodrigo R. Duterte ordered that all scientific exploration in the Philippine Rise, also known as the Benham Rise, will now be exclusive to Filipino scientists.

Mr. Duterte revealed that he received a statement from another country that said it recognizes the sovereign rights of the Philippines over Philippine Rise.

At a press briefing on Thursday, Presidential Spokesperson Herminio Harry L. Roque, Jr. said that Mr. Duterte was referring to China.

“It was publicly reported that [it was] China, while expressing somehow…[its] disappointment, [and] while acknowledging that we have put an end to the scientific research.” — Arjay L. Balinbin

Manufacturing declines 9.7% in December

February 9, 2018 | 12:47 pm

Factory production saw its fourth straight month of contraction last December, data from the Philippine Statistics Authority (PSA) showed.

In its latest Monthly Integrated Survey of Selected Industries (MISSI), the PSA said that factory output — as measured by the Volume of Production Index (VoPI) — fell 9.7% year on year.

Sectors that saw declines were: chemical products (-67.3%), footwear and wearing apparel (-42.9%), tobacco products (-31.8%), textiles (-30.5%), electrical machinery (-1.1%), machinery except electrical (-1.0%), transport equipment (-1.0%) and wood and wood products (-7.4%).

On the other hand, gains were observed on the following: petroleum products (26.3%), basic metals (55.1%), printing (79.2%), non-metallic mineral products (27.9%), beverages (12.3%), furniture and fixtures (55.7%), fabricated metal products (27.2%), food manufacturing (1.8%), miscellaneous manufactures (8.5%), rubber and plastic products (5.3%), paper and paper products (7.5%) and leather products (11.6%).

Average capacity utilization, the extent by which industry resources are being used in the production of goods, stood at 84%.

Duterte orders NFA to import 250,000 tons of rice

February 9, 2018 | 12:03 pm

By Arjay L. Balinbin

President Rodrigo R. Duterte has ordered the National Food Authority (NFA) Council to pursue the procurement of 250,000 metric tons of rice amid supply shortage reports.

“There is a verbal instruction from the President to activate the 250,000 metric tons of rice on standby,” said Cabinet secretary and NFA council chairman Leoncio B. Evasco, Jr. in a phone patch interview with Palace media on Thursday night, Feb.8.

Adding: “The president said it last night [Feb.7], and I received [the information] this morning.”

Mr. Evasco said he has called a special meeting for the NFA council to discuss the matter “because [the] President does not want to decide on which mode of procurement to be pursued in getting the rice from outside.”

The council’s meeting is scheduled on Monday, Feb. 12, at the Palace, according to the council chairman.

As for the procurement mode, Mr. Evasco pointed out that the government has a number of options. “One is government to government; second option is government to private traders from outside; and third option is we let our traders purchase rice from outside.”

For his part, NFA administrator Jason Laureano Y. Aquino said in a press briefing that they requested for another 250,000 metric tons of rice (for import) but the council did not act on it.

“We are confident that we have rice,” Mr. Evasco explained, noting that the council expects the arrival of the 325, 000 metric tons of rice acquired through the minimum access volume (MAV) scheme.

“NFA tried to put people in a panic mode. Saying we don’t have rice? We have,” he also said.

Exports contract in December

February 9, 2018 | 10:31 am

Merchandise export sales contracted in December due to declines posted by four out of the top ten commodities for the month, the government reported Friday morning.

Preliminary data released by the Philippine Statistics Authority (PSA) showed exports contracting by 4.9% to $4.72 billion in December. This was a reversal from the previous month’s 1.6% increase ($4.96 billion) and the 6.6% increment ($4.97 billion) recorded in December 2016.

The commodities that declined were coconut oil (-56.7%); ignition wiring set and other wiring sets used for vehicles, aircrafts and ships (-27.1%); other manufactured goods (-24.4%) and metal components (-3.0%).

Those that gained were electronic products (15%), components/devices (semiconductors) (18.9%), machinery and transport equipment (62.8%), gold (198.8%), electronic equipment and parts (20.31%), and miscellaneous manufactured articles (10.6%).

Hong Kong was the Philippines’ top export market in December with a 16.7% market share at $789.61 million. It was followed by US (13.9% share), Japan (13.5%), China (11%), and Singapore (6.9%).