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Financial marts end 2017 on a high

By Arra B. Francia, Reporter and Karl Angelo N. Vidal

THE country’s financial markets ended 2017 with a bang, with the Philippine Stock Exchange index (PSEi) soaring to a fresh high on the last trading day, and the peso rallying to its best level against the US dollar in six months.

EQUITIES
The PSEi, a barometer of investor confidence, climbed 0.27% or 23.33 points to close at 8,558.42 on Friday, its 14th record high finish for 2017.

The benchmark index also closed 25.11% up from its finish of 6,840.64 last year, the first time in three years it ended in positive territory.

Friday also saw the PSEi hit another all-time high in intraday trading at 8,640.04. The previous record was at 8,605.15 on Nov. 3.

“It’s a reflection of the confidence that investors continue to put in the Philippines, especially 2016, we have a new president. 2017, this is off an election year. It’s a very good performance for the market and for the entire Philippines in general,” PSE Chief Operating Officer Roel A. Refran said in an interview after Friday’s closing bell.

For analysts, the stock market’s strong performance comes as no shock, since investors have remained bullish on the Philippines given its solid economic fundamentals.

“The main catalysts that propelled our market to new highs were the government’s tax reform program as well as the bullish infrastructure projects of the current administration and favorable corporate earnings,” Timson Securities, Inc. equities trader Jervin S. de Celis said in a mobile phone message.

First Grade Finance, Inc. President and Managing Director Astro C. Del Castillo noted the same, saying some investors are already positioning themselves.

“It’s not a surprise. Toward the end of the year it was really expected. Some investors already positioned themselves, given the changing fundamentals. This will a combination of the infrastructure projects, tax reform, and the remittances of BPOs (business process outsourcing firms), continued excellent performance of OFW (overseas Filipino workers) remittances,” Mr. Del Castillo said in a phone interview.

Investors were back in the market amid sluggish trading in the last few days, with a value turnover of P7.26 billion from 3.34 billion issues changing hands. This is higher than the P6.4-billion value turnover on Thursday.

On a yearly basis, Mr. De Celis said foreign buying activity amounted to P56 billion, significantly higher than the P2.1 billion recorded in 2016.

“I guess that’s an indication that foreign investors are seeing a brighter outlook for our market as economic activity remains robust,” Mr. De Celis said.

Mr. Refran said this provides a good jumping board for 2018, with some analysts already predicting it would breach the 9,000 mark by the end of next year.

“We can only improve from here because next year will be a milestone year. Not only will we be moving to a new office in BGC (Bonifacio Global City), but really it’s building on the foundation that we have established, more products hopefully easier for investors to tap the capital market,” Mr. Refran said.

PESO
At the Philippine Dealing System, the peso closed at P49.93 against the greenback on Friday, gaining five centavos from its P49.98 finish on Thursday. This was the local unit’s best level since it closed at P49.91-to-the-dollar last June 19.

However, the peso closed weaker than its end-2016 finish of P49.72 against the greenback.

The local currency opened Friday’s session at P49.90 against the dollar. Its intraday low was at P50.01, while its best showing stood at P49.89.

Dollars traded soared to $742.2 million from the $625.3 million that changed hands during the previous session.

“The peso appreciated today as traders continued to sell off their positions towards the year-end,” a trader said in an e-mail on Friday.

Another trader noted market players are now winding down their positions given the weakness of the peso this year.

On Wednesday, Bangko Sentral ng Pilipinas Governor Nestor A. Espenilla, Jr. attributed the peso’s recent strength to the continuous flow of remittances, as well as the softness of the greenback brought by uncertainties on the newly-passed tax overhaul in the US.

The local currency performed weaker in 2017. From Jan. 3 to Dec. 29 this year, the peso traded at an average of P50.40, higher by P2.92 compared with the P47.48 average booked in the same period last year.

The peso hit an 11-year low of P51.76 on Oct. 27, while its best showing for the year was at P49.40 on June 5.

Although analysts are calling the peso the “worst performing currency” this year, for Ruben Carlo O. Asuncion, Union Bank of the Philippines’ chief economist, the weakness of the peso had a positive impact on the domestic economy.

“If we are talking about the impact of the peso’s performance on the general macroeconomy, then, it is a different talk altogether. We have better export earnings because of the peso. We have remittances continuously growing because of the weak peso,” Mr. Asuncion said in a text message.

“We have a better fiscal position because of its so-called ‘worst performance’.”

For next week, the peso will likely stay on the weaker end as analysts are weighing on the effects of a wider current account deficit, although some are saying that this will be tempered by the long-term effects of the local tax reform measure.

The local financial markets will reopen on Jan. 3, 2018.

BSP sees December inflation at 2.9-3.6%

By Melissa Luz T. Lopez, Senior Reporter

INFLATION likely steadied in December from a month ago despite higher fuel and rice prices, the Bangko Sentral ng Pilipinas (BSP) said on Friday, enough to keep the full-year pace well within expectations.

Price increases for basic goods and services may have logged between 2.9-3.6% this month, based on estimates made by the BSP’s Department of Economic Research. This matches the forecast range given for November when inflation actually settled at 3.3%, marking a decline after four straight months of rising rates.

This also compares to a 2.6% reading in December 2016. Despite the uptick, the inflation forecast still settles comfortably within the 2-4% target band set by the monetary authority.

The Philippine Statistics Authority will release December and full-year inflation figures on Jan. 5, 2018.

“Higher domestic petroleum and rice prices could contribute to upward price pressures, which could be partly offset by the decline in Meralco’s electricity rates and stronger peso,” the central bank said.

Retail pump prices have posted net increases from a year ago even as fuel companies implemented a rollback on Dec. 12. Year-to-date, diesel prices are up by P5.65 per liter while gasoline posted a net increase of P6.09/liter. Kerosene prices are likewise higher by P3.87/liter.

Global crude prices are on the rise in recent months after oil-producing nations agreed to extend supply cuts until 2018.

Meanwhile, power distributor Manila Electric Co. reduced electricity rates by P0.3785 per kilowatt-hour after five straight months of increases, on the back of lower generation charge and a stronger peso.

The peso recovered against the dollar this December to trade at six-month highs, and even closed at the P49 level versus the greenback on Friday — the last trading day for the year. BSP Governor Nestor A. Espenilla, Jr. attributed the recovery of the local currency to strong remittance and equity inflows, coupled with “attractive” domestic fundamentals which have been reinforced by the signing into law of the tax reform package.

Abroad, the “soft” dollar due to investor uncertainty over a parallel tax legislation in the US has also helped boost the local currency, the central bank chief said.

The milder exchange rate helped reduce import prices, which feed into the cost of widely-used goods.

These developments would allow inflation to match the BSP’s 3.2% estimate for the entire year, which would also pick up from the 1.8% average logged in 2016.

The inter-agency Development Budget Coordination Committee (DBCC) kept the annual inflation target at 2-4% for 2018 to 2020, with the central bank seeing that price movements will remain “manageable” despite the expected impact of higher fuel costs and additional excise taxes which will kick in by Jan. 1, 2018.

“Expectations of healthy economic growth alongside the tax reform program would create demand-side impetus to inflation. Nonetheless, the favorable effect of sustained investment spending by the national government on the economy’s productive capacity would help temper inflation pressures,” the central bank said on Thursday.

The DBCC conducted its second review for the year on Dec. 22, where economic managers decided to keep the annual economic growth target at 7-8% from 2018 to 2022.

Top officials ordered to comment on petition seeking to halt martial law extension in Mindanao

THE Philippines’ high tribunal ordered top government officials and lawmakers to comment on a petition seeking to stop the re-extension of martial law in Mindanao “within 10 days.”

This developed on Friday after the Supreme Court found the petition — filed by opposition lawmakers — “sufficient in form and substance.”

“Considering the allegations contained, the issues raised and the arguments adduced in the petition, it is necessary and proper, without giving due course to the petition, to require the respondents to comment on the petition and prayer for the issuance of a temporary restraining order or writ of preliminary injunction,” the Supreme Court said in the order.

Named as respondents were Senate President Aquilino Martin Pimentel L. Pimentel III, House Speaker Pantaleon D. Alvarez, Executive Secretary Salvador C. Medialdea, Defense Secretary Delfin N. Lorenzana, Budget Secretary Benjamin E. Diokno, and Armed Forces Chief of Staff General Rey Leonardo Guerrero.

The petition was filed by Albay Rep. Edcel C. Lagman, Akbayan party-list Rep. Tomasito S. Villarin, Caloocan Rep. Edgar R. Erice, Ifugao Rep. Teddy Brawner Baguilat, Jr., Magdalo party-list Rep. Gary C. Alejano and Capiz Rep. Emmanuel A. Billones last Wednesday, Dec. 27.

The petitioners cited that “there is no actual rebellion in Mindanao and the re-extension is extremely long even as the approval was made with undue haste and unscrupulous imprudence.”

On Dec. 13, the Congress voted 240-27 in joint session to allow the extension of martial law and suspension of the privilege of the writ of habeas corpus in Mindanao from Jan. 1 to Dec. 31, 2018. — Minde Nyl R. Dela Cruz

MBC raises stake in Elizalde Hotels

MANILA Broadcasting Company (MBC) is increasing its stake in affiliate Elizalde Hotels and Resorts, Inc. through a P240-million share purchase agreement.

In a disclosure to the stock exchange on Friday, MBC said it will be acquiring an additional 43.64% of shares in EHRI, bringing its total stake in the company to 80%. The deal comprises the purchase of 240,000 shares priced at P1,000 apiece.

“The acquisition aims to maximize MBC stockholders’ returns by investing in the high growth of hotel and resort business,” the listed company, chaired by Fred J. Elizalde, said.

MBC initially diversified into the hotel and resort business in 2016, when the broadcasting company decided to invest in EHRI.

The new transaction will be subjected to standard closing conditions, such as the delivery of original stock certificates and the execution of the necessary transfer documents.

Trading of MBC shares were suspended at 1:30 p.m. on Friday following MBC’s disclosure, as the Philippine Stock Exchange classified the transaction as “substantial acquisitions and reverse takeovers of the disclosure rules.”

The PSE said it will make further announcements on the lifting of the trading suspension. Shares in MBC last closed at P15.80 each on December 28.

Incorporated in 1947, MBC has a congressional franchise spanning 25 years allowing it to operate radio and TV shows in the country, starting 1994. Under its leadership are DZRH, Aksyon Radyo, Love Radio, Yes-FM, Easy Rock, Radyo Natin, and RHTV. — Arra B. Francia

Senate gets high satisfaction rating, survey says

THE Senate received the highest public satisfaction rating among top government institutions under President Rodrigo R. Duterte’s administration, the Fourth Quarter 2017 Social Weather Station (SWS) survey results showed.

Sixty-nine percent of those surveyed were satisfied with the performance of the Senate while 14% were dissatisfied, the poll results said.

The House of Representatives came next, with 59% of respondents saying that they were satisfied and 16% dissatisfied. Meanwhile, 54% were satisfied with the performance of the Supreme Court although 17% were dissatisfied. The Cabinet ranked fourth among the lot, with 53% satisfied and 15% dissatisfied.

The noncommissioned survey was conducted from December 8-16, 2017 using face-to-face interviews of 1,200 adults (18 years old and above) nationwide: 300 each in Metro Manila, Balance Luzon, Visayas, and Mindanao (sampling error margins of ±3% for national percentages, and ±6% each for Metro Manila, Balance Luzon, Visayas, and Mindanao).

SENATE
The Senate’s net satisfaction rating rose by one grade from good to very good, at +56 (correctly rounded) in December 2017, up by 10 points from +46 in September 2017, the SWS said, indicating that its rating remained under the “very good” range.

Based on the SWS net satisfaction ratings, those with 70+ and above are excellent; +50 to +69, “very good”; +30 to +49, “good”; +10 to +29, “moderate”, +9 to -9, “neutral”; -10 to -29, “poor”; -30 to -49, “bad”; -50 to -69, “very bad”; -70 and below, “execrable”. SWS considers the movement from one classification to another as either an “upgrade” or “downgrade”.

“The 10-point rise in the overall net satisfaction rating of the Senate was due to increases of 23 points in Mindanao, 10 points in Balance Luzon, 3 points in Metro Manila, and 1 point in the Visayas,” the polling group said.

For comparison, the Senate’s net satisfaction rating rose by one grade from good to very good in Mindanao, at +67 in December, up by 23 points from +44 in September.

It also rose by one grade from good to very good in Balance Luzon, at +54 in December, up by 10 points from +44 in September. Meanwhile, it stayed very good in the Visayas, at +53 (correctly rounded) in December, hardly moving from +52 in September. It also stayed good in Metro Manila, at +46 in December, up by 3 points from +43 in September.

Sought for comment, Senate President Aquilino L. Pimentel III said: “It’s a team/group effort. The majority is blessed to have hardworking members and also a reasonable and cooperative (not obstructionists) minority.”

HOUSE RATING
For its part, the House of Representatives logged a “good” rating, at +43 in December 2017, up by 9 points from +34 in September 2017.

SWS said the “9-point rise in the overall net satisfaction rating of the House of Representatives was due to increases of 14 points in Balance Luzon, 13 points in Mindanao, and 5 points in Metro Manila, combined with a 5-point decline in the Visayas.”

The net satisfaction rating of the House of Representatives rose by one grade from moderate to good in Balance Luzon, at +42 in December, up by 14 points from +28 in September. It rose by one grade from good to very good in Mindanao, at +52 in December, up by 13 points from +39 in September; and it also increased by one grade from moderate to good in Metro Manila, at +34 in December, up by 5 points from +29 in September. In the Visayas, it stayed good at +41 in December, although down by 5 points from +46 in September.

SUPREME COURT
The Supreme Court’s net satisfaction stayed good, at +37 in December 2017, up by 6 points from +31 in September 2017.

“The 6-point rise in the overall net satisfaction rating of the Supreme Court was due to increases of 8 points in Mindanao, 6 points in Balance Luzon, and 5 points in the Visayas, combined with a 1-point decline in Metro Manila,” SWS said.

SWS data also showed that the Supreme Court’s (SC) net satisfaction rating rose by one grade from good to very good in the Visayas, at +50 in December, up by 5 points from +45 in September, which also rose by one grade from moderate to good in Balance Luzon, at +35 in December, up by 6 points from +29 in September. It stayed good in Mindanao, at +41 in December, up by 8 points from +33 in September. SC’s net satisfaction also stayed moderate in Metro Manila, at +17 in December, hardly moving from +18 in September.

CABINET
Finally, the Cabinet also logged a “good” rating, at +38 in December 2017, up by 6 points from +32 in September 2017.

SWS explained that “the 6-point rise in the overall net satisfaction rating of the Cabinet was due to increases of 15 points in Mindanao, 8 points in Balance Luzon, and 3 points in Metro Manila, combined with a 7-point decline in the Visayas.”

The net satisfaction rating of the Cabinet rose by one grade from good to very good in Mindanao, at +52 in December, up by 15 points from +37 in September. It rose by one grade from moderate to good in Balance Luzon, at +35 in December, up by 8 points from +27 in September. It also increased by one grade from moderate to good in Metro Manila, at +31 in December, up by 3 points from +28 in September. It stayed good as well in the Visayas, at +32 (correctly rounded) in December, although down by 7 points from +39 in September. — Arjay L. Balinbin

AboitizPower unit prepays $320M loan

ABOITIZ Power Corp. (AboitizPower) on Friday said its subsidiary Therma Power, Inc. (TPI) has prepaid $320 million in loans to several banks.

AboitizPower said in a disclosure on Friday that TPI used internally generated funds to prepay the loan, which was part of a facility agreement dated Nov. 24, 2016 that allowed the company to borrow up to $650 million.

The facility agreement involved the following banks: The Bank of Tokyo-Mitsubishi UFJ, Ltd., DBS Bank Ltd., The Hongkong and Shanghai Banking Corporation Limited, Maybank Kim Eng Securities Pte. Ltd., Mizuho Bank, Ltd., and Standard Chartered Bank.

TPI had secured the loan to fund its investments totaling $1.2 billion in GNPower Coal Plant Ltd. Co. (GNPower Mariveles) and GNPower Dinginin Ltd. Co. (GNPower Dinginin), both of which operate plants in Bataan. The investments were indirectly made through United States-based Blackstone Group LP.

The acquisition placed TPI’s beneficial ownership interest in GNPower Mariveles at 66.1%, and 40% beneficial ownership interest in GNPower Dinginin.

GNPower Mariveles is a coal-fired power plant with a capacity of 604 megawatts, while GNPower Dinginin has two identical 668MW power blocks also powered by coal, for a total capacity of 1,336 MW.

The company finalized the transaction in December 2016, after securing the approval of both the Board of Investments and the Philippine Competition Commission.

AboitizPower noted the two Bataan plants would bring the company closer to meeting its target of 4,000 MW of installed capacity by 2020.

TPI is AboitizPower’s holding unit for its non-renewable power investments. The company also has interests in renewable power generating facilities. It is also one of the core businesses under Aboitiz Equity Ventures, Inc., which has subsidiaries and affiliates in financial services, food manufacturing, real estate, infrastructure, and portfolio investments.

AboitizPower booked P15.7 billion attributable profit in the first nine months of 2017, following a 29% increase in revenues to P92.9 billion during the period.

Shares in AboitizPower were up 10 centavos or 0.24% to P41.55 apiece on Friday. — Arra B. Francia

Authorities start Davao mall fire probe

DAVAO CITY — The Bureau of Fire Protection (BFP) started its investigation into the New City Commercial Center (NCCC) mall fire that killed 38 persons and left one missing.

Authorities first looked into the area of the mall that was leased by SSI, a call center that employed most of the fatalities.

[We] wanted to know why persons were trapped inside, Senior Superintendent Jerry D. Candido said.

SSI’s operations on the fourth floor were located right below a ten-meter area on the third floor — the location of the mall’s Home Accent section — where the fire started.

“When fire occurs in any part of the mall, SSI will be fully engulfed — that explains why the exits were not used because they were cut off by smoke,” Mr. Candido said in Filipino. “Our current standing observation is that the aircon condenser sucked in the smoke and that’s why the safest fire exit was not used because it was cut off by smoke.”

Based on their findings, they found out that there were no enclosures to make it smoke proof. He also said that the call center had a fire detection system and automatic fire suppression system (sprinklers) but these weren’t connected to the mall. As a result, “the personnel were not made aware that a fire was already happening just below their floor,” Mr. Candido said.

He clarified that this wouldn’t pose a problem as long as the call center’s Fire Detection and Alarm System (FDAS) remained centralized with the mall.

However, the call center didn’t have an “automatic fire suppression system,” he said.

Usually call centers have this system — which will cover its servers because it’s the most fire-prone area — and if a circuit gets shorted, the automatic fire supression system will extinguish it, Mr. Candido explained.

They also initially found out that the material used in the ceiling below SSI is polyurethane (PU) which is combustible.

The BFP is also exploring two theories as to who informed the SSI personnel about the fire: Melvin Gaa, an employee of NCCC Mall who was able to escape but who later died after he went back to warn the others inside SSI or SSI employees themselves who were already alarmed because of the smoke from the airconditioning unit.

While there were enough fire exits, the pathways to these exits were cut off by smoke.

If personnel were properly trained through the regular conduct of fire drills, they could have escaped because all they had to do was to crawl to avoid smoke, he added.

Mr. Candido assured that there will be no cover up with regards to the investigation, which is expected to be finished in two weeks. — Maya M. Padillo

Liquidity, lending growth decelerate in November

By Melissa Luz T. Lopez, Senior Reporter

MORE MONEY circulated in the economy as of November on the back of sustained bank lending, although growth eased from the previous month, the central bank reported on Friday.

Domestic liquidity or M3, the broadest measure of money in an economy, expanded by 14% last month to reach P10.4 trillion, the Bangko Sentral ng Pilipinas (BSP) said. However, this pace is slower than the 14.8% logged in October.

This pace is also the slowest since a 13.5% increase in July. Month on month, liquidity increased by 0.3%.

“Growth in bank loans continued to be driven by lending to key production sectors,” the BSP said in a statement, even as it noted that domestic claims posted a slower growth compared to the previous month.

Liquidity from domestic sources grew by 14.7% in November, slowing from a 15.2% increase posted in October. This came on the back of a slower pickup in private sector credit, which logged at 16% from 16.5% a month ago.

Net foreign assets expressed in peso terms also remained growing, albeit at a substantially slower pace of 1.9% versus 6.1% in October. A reduction in the dollar reserves held by the central bank drove the reduction in its foreign asset stash, as the BSP sometimes uses these reserves for its “tactical interventions” to contain sharp swings in the peso-dollar exchange rate.

Meanwhile, foreign assets held by banks remained growing amid higher loans and investments in debt securities.

LENDING GROWTH SOFTENS
Local banks also reported a slight easing in credit growth in November, marking the second straight month of deceleration.

Bank lending jumped by 19.2% last month, still robust although slower than a 19.9% increase posted in October, the BSP said. This is the slowest pace seen since a 19% climb in June.

Still, outstanding loans granted by banks totalled P6.961 trillion as of end-November, according to central bank data.

Factoring in reverse repurchase agreements held by banks, total lending rose by 18.3%, slightly faster than the 18% growth clocked in the previous month.

About 88.4% of the fresh credit lines granted by lenders went to production activities, which grew by 18.5% year-on-year.

Loans extended to the information and communication sector posted the biggest increase at 31.4%. This is followed by a pickup in lending for electricity, gas, steam and air-conditioning supply (24.2%), financial and insurance activities (23.1%), wholesale and retail trade, repair of motor vehicles and motorcycles (18.5%), and real estate activities (18.3%). Lending for the manufacturing sector also rose by 11.5%, according to central bank data.

Lending to other industries also posted increases, except for administrative and support services which declined by 31.5% and a 2.1% drop in lending for public administration, defense and compulsory social security.

On the other hand, growth in consumer loans also slowed to 20.6% in November from 23.4% the previous month. A slower pickup in car loans and salary-based borrowings offset higher credit card lending, the BSP said.

The central bank regularly monitors liquidity and bank lending dynamics to ensure price and financial stability, as it noted that current money supply conditions remain attuned to upbeat economic activity.

Several analysts have flagged overheating risks for the economy in light of the sustained double-digit expansion in bank credit. However, central bank officials have said that the robust lending simply mirrors increased domestic activity and continues to support rapid economic growth.

New law prohibits expiry dates on gift checks

PRESIDENT Rodrigo R. Duterte has signed a law prohibiting the “issuance of a gift check that bears an expiry date” and “imposing an expiry date on the stored value, credit, or balance of the gift check.”

The Republic Act No. 109621, or An Act Regulating the Issuance, Use and Redemption of Gift Checks, was signed by Mr. Duterte last December 19 as shown in the copy released by Malacañang on Friday, Dec. 29.

The said law also prohibits issuers from “refusing to honor the unused value, credit, or balance stored in the instrument.”

“Holders of unused and unexpired gift checks shall, at no additional cost, be entitled to avail of replacement after revalidation by the issuers,” the Law said.

Section 11 of the Act also states that “Any person, natural or juridical, who violates the provisions (in the Law) shall be obligated to return the unused balance of the gift check within ninety (90) days from the declaration of the violation by the DTI (Department of Trade and Industry) and shall be subject to a fine to be imposed by the Secretary of Trade and Industry, which shall in no case be less than five hundred thousand pesos (P500,000) nor more than one million pesos (P1,000,000).”

For the second offense, in addition to the fine, the issuance of gift check by the offending issuer shall be suspended for three (3) months.

Meanwhile, for the third offense, in addition to the fine, the issuance of gift check by the offending issuer shall be cancelled.

The DTI, according to the said Act, shall have exclusive jurisdiction in its implementation.

As for exclusions, gift checks that are issued to consumers including, but not limited to, those under loyalty, rewards, or promotional programs, as determined by the DTI, are not covered by this Act. Coupons or vouchers are likewise not covered.

Section 15 of the Act states that it “shall take effect fifteen (15) days after its publication in the Official Gazette or in at least two (2) newspapers of general circulation.” Upon its affectivity, all gift checks already issued shall be covered by its provisions. — Arjay L. Balinbin

PEZA fails to meet investment growth goal

THE Philippine Economic Zone Authority (PEZA) failed to meet its investment target for 2017 due to expansion delays.

The PEZA reported on Friday that it generated a total of P237.57 billion in investments as of December 2017, 8.89% higher year-on-year — well below the agency’s target of a 200% increase in approved investment projects.

PEZA Director General Charito B. Plaza said in a briefing that investments were affected by planned expansions that failed to take flight this year due to delayed presidential proclamations, a lingering issue for the agency.

“Before, they only required the building to be declared but now the Malacañang wanted the lot to be part of the proclamation as well. So when we told the applicants to comply, it also led to the delay,” She added.

Despite this, Ms. Plaza still credited the Duterte administration’s foreign policy to the incremental increase in investments.

“There is much hope that the Duterte government is a better government because it is an independent foreign policy, it already welcomes everybody. If you look at the records of the foreign investors, most of the foreign investors are allies of America, are democracies,” she added.

“[Back then], we did not open the Philippines to China to Russia because they not allies. We did not open to the Middle East because of our traditional mindset. [But now], these are the three regions of the world that are very aggressive on the Philippines [in terms of investing].”

Ms. Plaza also pointed to PEZA’s “aggressive campaign” in local government units (LGU) for the dissemination of information about the agency’s incentives and programs.

“[These LGUs] are now interested in establishing ecozones for their activities. [In fact], 65% of the investments come from ecozone development. We will still push through with our aggressive campaign in the LGUs next year,” she added.

As of December, PEZA has 379 ecozones. — AGAM

NBI ordered to probe shootout that killed gunshot victim on the way to hospital

THE National Bureau of Investigation (NBI) was directed to probe a shootout that killed two persons, including one who was being taken to the hospital after she was shot in a separate incident.

In an order, the Department of Justice — through Secretary Vitaliano N. Aguirre II — directed NBI Director Dante A. Gierran “to conduct investigation and case build-up” regarding the incident that took place along Shaw Boulevard corner Wack-Wack Road. It left two dead and two others injured after members of the Mandaluyong City police and village watchmen was alleged to have mistakenly shot at a vehicle carrying Jonalyn Amboan and Jomar Jayaon, who were the fatalities, a report by InterAksyon.com said.

Ms. Amboan was reportedly shot in an earlier incident. The vehicle which was supposed to take her to the hospital was flagged down by two village watchmen. The passengers accompanying Ms. Amboan stepped out of the vehicle, as ordered, but the watchmen opened fire, killing Mr. Jayaon, according to Mhury Jamon, one of the survivors.

Alerted by the incident, members of the Mandaluyong police also opened fire at the vehicle even though its passengers already said that they were carrying a patient.

The National Capital Region Police Office (NCRPO) reportedly recovered 36 empty shells on the scene. NCRPO Director Gen. Oscar D. Albayalde said the members of the police involved in the shootout may have violated the Police Operation Procedure and does not discount the possibility of an overkill.

Mandaluyong City police chief Senior Supt. Moises Villaceran and ten other police personnel were relieved pending investigation. — Minde Nyl R. Dela Cruz

Cirtek buys stake in tech firm Multipay

CIRTEK Holdings Philippines Corp. (Cirtek) has acquired a stake in local technology firm Multipay Corp. in a bid to expand its reach in the technology sector.

In a disclosure to the stock exchange on Friday, Cirtek said its board of directors has approved the acquisition of around 49% of the total issued and outstanding capital stock of Multipay, representing 44,100 shares. The value of the deal was not disclosed.

“The planned acquisition is in line with the Company’s strategy to expand its business and leverage on its accumulated expertise in technology, particularly in the wireless/broadband transmission business and e-commerce,” Cirtek said.

Cirtek described Multipay as a Philippine company engaged in “the business of development, promotion, and marketing of technology, systems solutions, and applications that can be utilized as platform for connectivity, processing, and delivery of electronic services.“

The listed firm said it also plans to make other acquisitions that would strengthen its position in the technology sector, as well as enhance its capability in creating and providing e-commerce platforms and enterprise solutions to related industries.

Cirtek has been actively pursuing acquisitions. This year, it closed the deal for the purchase of United States-based antenna producer Quintel for $77 million. The company said it aims to grow Quintel’s annual revenues to $500 million in the future.

The company likewise launched dollar-denominated securities this year, raising $67 million in the process.

Cirtek booked a net income of $5.57 million in the first nine months of 2017, 1.36% lower than its earnings in the first three quarters of 2016. Revenues meanwhile were up 25% to $67.92 million during the same period.

Shares in Cirtek added 45 centavos or 0.99% to P45.95 each at the Philippine Stock Exchange on Friday. — Arra B. Francia

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