SWS poll:77% satisfied with efforts by Duterte gov’t to rebuild Marawi

November 25, 2017 | 12:03 am

EFFORTS by the Duterte administration to rebuild Marawi City yielded an excellent +70 net satisfaction rating, according to the latest results of the Third Quarter 2017 Social Weather Survey by the Social Weather Stations (SWS).

The noncommissioned survey conducted Sept. 23-27 also found that 53% of Filipinos think it will take five years or more before the areas damaged by the Marawi City crisis can fully recover, while 46% say it will take one to four years, SWS said.

77% of respondents expressed satisfaction (43% very satisfied and 35% somewhat satisfied, correctly rounded) with the efforts to rebuild Marawi City, the scene of a siege by Islamist terrorists that began May 23 and ended this month. Dissatisfied respondents constituted 8% (4% somewhat dissatisfied and 3% very dissatisfied, correctly rounded), which led to the +70 excellent net satisfaction rating (% agree minus % disagree, correctly rounded).

SWS’ terminology for net satisfaction is as follows: +70 and above, “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.”

The survey showed net satisfaction with the Duterte administration’s efforts to rebuild Marawi City as being highest in Mindanao at an excellent +77 (81% satisfied, 4% dissatisfied); followed by Metro Manila at an excellent +75 (83% satisfied, 8% dissatisfied); Balance Luzon at a very good +66 (74% satisfied, 8% dissatisfied); and the Visayas at a very good +65 (75% satisfied, 10% dissatisfied).

The results hardly varied across locale — an excellent +70 in overall urban areas, and a very good +69 in overall rural areas.

By education, satisfaction was an excellent +76 among college graduates, and an excellent +74 among high school graduates. It was a very good +67 among elementary school graduates and a very good +54 among non-elementary school graduates.

By religion, it was within the excellent net satisfaction range among Iglesia ni Cristo members (+75) and religions other than INC, Islam, and Roman Catholicism (+72). It was within the very good net satisfaction range among Roman Catholics (+69) and Muslims (+65).

As for projections on Marawi’s recovery, the proportion of those saying it will take five years or more for Marawi City to fully recover was 60% (21% 5-6 years, 38% 7 years or more, correctly rounded) in Mindanao, 60% (25% 5-6 years, 35% 7 years or more) in the Visayas, 50% (19% 5-6 years, 31% 7 years or more) in Balance Luzon, and 44% (22% 5-6 years, 22% 7 years or more) in Metro Manila, SWS said.

The survey also noted the proportion of those who believe it will take five years or more for Marawi City to fully recover tends to be higher among the older age groups: 60-63% among 45 years old and above, compared to the 48-50% range among the 25-44 year olds, and 36% among 18-24 year olds. The results hardly varied across locale, class, sex, educational level, and religion.

The survey was conducted using face-to-face interviews of 1,500 adults nationwide, 600 in Balance Luzon and 300 each in Metro Manila, the Visayas and Mindanao (with sampling error margins of ±3% for national percentages, ±4% for Balance Luzon, and ±6% each for the other areas).

MRC Allied taps Chinese partner for LNG venture

November 25, 2017 | 12:03 am

MRC Allied, Inc. has signed a memorandum of understanding (MoU) with Guangdong Power Engineering Co., Ltd. (GPEC) to explore projects in liquefied natural gas (LNG)project in the Philippines two months after pursuing a similar deal on renewable energy projects.

In a disclosure to the stock exchange, MRC Allied said the purpose of the MoU “is to confirm that both parties have interest in exploring the possibility of investing, constructing, developing and operating” local LNG projects. It said the memorandum was signed on Thursday.

“There is a growing interest and increasing excitement about prospects in the LNG industry in this country. We are looking forward to having solid partnerships with foreign investors” said MRC Chairman Carlos Jose P. Gatmaitan in a statement.

“We are likewise excitedly waiting for the government to come up with the legal and regulatory framework that will govern the LNG industry. We heard that the Department of Energy will release the rules very soon,” he said.

MRC Allied, a mining and property company that is bent on shifting to energy, described GPEC as based in Guangzhou, Guangdong, People’s Republic of China, which is engaged in the business of exploration, development and construction of energy projects.

In July, MRC Allied, Inc. entered into a separate MoU with the Chinese energy engineering group to look into the renewable energy projects in the Philippines that have been identified by the local company.

In the latest MoU, MRC Allied said within a period of one year, the parties will conduct due diligence to identify prospective LNG projects.

“Subject to the result of the due diligence, the parties will execute a more definitive agreement covering an identified LNG project,” the company said in its regulatory filing on Friday.

It also said the MoU is in effect for a period of one year from signing.

“The effect on the business, financial condition and operations of the Issuer will be subject to the definitive agreement to be executed by the parties after the conduct of due diligence within the one year period,” MRC Allied said.

On Friday, shares in MRC Allied rose by 11.69% to close at P0.43 each. — Victor V. Saulon

Mindanao-Sulawesi shipping route resumes with smaller vessel

November 25, 2017 | 12:03 am

DAVAO CITY — An Indonesian-flagged boat, the Gloria 28, with capacity of 256 twenty-foot equivalent units (TEUs), has started plying the Davao-Manado route as an alternative to the Davao-General Santos-Bitung service that has been put on hold for lack of demand.

The Davao-GenSan-Bitung roll on-roll off (RoRo) service, launched on April 30 this year with President Rodrigo R. Duterte and Indonesian President Joko Widodo leading the ceremony, used the 500-TEU M/V Super Shuttle RORO 12 of Philippine company Asian Marine Transport Corp.

“Since (Super Shuttle RORO 12) was facing difficulties, we looked for an alternative, which is a smaller vessel and this vessel has sailed. We put a lot of effort to launch this smaller RoRo,” Indonesian Consul General Berlian Napitupulu told the media in a forum on Nov. 22.

The Gloria 28 started on the Manado-Davao route in October, and is scheduled to make a second trip before the end of November.

Mr. Napitupulu, who is based in Davao City, said that there has been enough cargo both ways and he and Philippine partners are working to expand the variety of goods that can be traded.

“For instance they bring Christmas decorations (from Davao) to Manado because most of the people of Manado are Christians and they celebrate Christmas,” he said.

On the other hand, products that were shipped in from Manado include agricultural goods, plywood, and soft drinks.

“This is small, but it has started. Better than to have a big launch that makes no economic sense,” Mr. Napitupulu said.

“If any two kinds of Indonesian food and beverage come to Mindanao, I am happy. To bring two products is not easy,” he added.

Part of the campaign for trade expansion is the holding of the first Indonesia Fashion Expo on Nov. 24 to 26 at the activity center of Abreeza Mall, where 24 Indonesian companies are expected to participate.

Mr. Napitupulu said among the exhibitors are wholesale and retail firms involved in textile, garments, shoes, bags, leather products and accessories.

The event will also feature one-on-one business matching meetings, and tourism promotion activities.— Maya M. Padillo

Harbor Star buys into GenSan solar power plant operator

November 25, 2017 | 12:02 am

LISTED logistics company Harbor Star Shipping Services, Inc. has acquired 60% of a solar power plant operator in General Santos City for $6.3 million (P318 million) in a move it said “positions itself in the energy sector of the future.”

In a disclosure to the stock exchange on Friday, the shipping company said the deal is between its subsidiary Harbor Star Energy Corp. (HSEC) and Astronergy Development Gensan Inc. (ADGI).

The agreement covers the purchase of 45% of the issued capital stock of ADGI from existing shareholders and the subscription to ADGI primary shares to raise HSEC’s stake to 60%.

Harbor Star last month disclosed its foray into the power sector, saying that HSEC has acquired a combination of primary and secondary shares in ADGI, as well as Astronergy Development F1, Inc., and Astronergy F2, Inc., which form ADI Companies, but the shipping company at that time did not yet indicate an amount spent for the acquisition.

ADGI has permits, licenses and entitlements to operate 25 megawatts (MW) solar plant, expandable to 75MW, in General Santos City. The construction of the initial 25MW solar power plant will be completed by the second quarter of 2018.

ADGI has an existing power purchase agreement (PPA) approved by regulators with South Cotobato II Electric Cooperative, Inc. (“SOCOTECO II”). Under the PPA, SOCOTECO-II will purchase all the energy output from the project.

Shares of Harbor Star rallied, closing at P3.93 apiece, up P0.82 or 26.37%.

Duterte assures justice in Ampatuan massacre

November 25, 2017 | 12:02 am

By Rosemarie A. Zamora

PRESIDENT Rodrigo R. Duterte has vowed to families of victims of the 2009 Ampatuan massacre that justice will be served “under his watch,” Malacañang said on Friday, Nov. 24.

Presidential Spokesperson Harry L. Roque, Jr., in his press briefing said Mr. Duterte had a “cordial, candid, and impassioned” meeting with the families on Thursday, Nov. 23.

That day marked the eighth anniversary of the massacre in Ampatuan town, Maguindanao, which claimed the lives of 58, including 32 identified with the media.

The massacre allegedly on the watch of the Ampatuan family is still deemed the biggest case of political violence in recent memory. The Committee to Protect Journalists describes this incident as “the single deadliest event for journalists in history.”

An update by the Supreme Court last Tuesday indicated the case was still in the stage of hearing evidence.

Mr. Roque for his part said, “The President gave specific instructions to [Justice Secretary Vitaliano N.] Aguirre, the PTFoMS [Presidential Task Force on Media Security] and the state prosecutors handling the case who were present, to see to it that a conviction would be handed down to the principal accused (at) the soonest possible time.”

“He likewise instructed Special Assistant to the President, Secretary Christopher “Bong” Go, to arrange employment, scholarships and financial assistance to the families,” Mr. Roque added.

Mr. Roque said the families had sought an audience with the President “to personally seek his help in their long quest for justice against the powerful members of the Ampatuan clan in Maguindanao.”

The spokesman added: “President Duterte, a former prosecutor himself, even shared his thoughts on the dynamics and intricacies of the justice system, noting that even the right of the accused to be heard is sacred under our democratic rules. Nevertheless, he expressed optimism that the strength of the case against them-188 respondents in all-will eventually lead to a verdict favorable to the victims.”

Mr. Roque also noted that Mr. Duterte, then mayor of Davao City during the massacre, was among the first to extend help to the families by providing a helicopter that helped locate the site of the massacre.

“Rest assured that us in the government, through PTFoMS, the DOJ and other stakeholders, will work without letup in ensuring justice for all victims of violence against members of the working press,” Mr. Roque said, adding:

“We are committed to upholding the President’s promise that his government will never condone violence and repression of media.”

BoI approves perks for plastic pellet exporter

November 25, 2017 | 12:02 am

PORTAL Steels, Inc. has won tax and fiscal incentives for its plastic pellet export business, qualifying under the Investment Priorities Plan (IPP), the Board of Investments (BoI) said.

In a statement Friday, the Department of Trade and Industry’s investment promotions said it approved incentives for the company’s P46.3 million plant at Hong Chang Compound, Carmona, Cavite.

The plant is expected to produce 2,400 metric tons of plastic pellets annually once it starts commercial operations next month, which will be used for food and beverage packaging products, bags, and gearbox motors. More than half of the output will be shipped out to Asian markets.

Portal Steels said in the statement that it plans to increase its work force to 44 from the current 26.

The IPP grants incentives for goods and servics exports.

According to the BoI, the production of plastic pellets falls under the automotive, construction, electronics, machinery, packaging and “other” sectors category of eligible projects under IPP.

The DTI is seeking to revive the local manufacturing industry through a program of incentives for projects outside Metro Manila.

In September, Portal Steels also qualified for incentives for its P323 million steel billet plant which will produce for both local and export markets.

The steel billet plant uses scrap metal as its raw material and is due to open in December. — Anna Gabriela A. Mogato

BPI LTNCTD issue expanded to record P12.24-billion

November 25, 2017 | 12:02 am

BANK of the Philippine Islands (BPI) listed P12.24 billion worth of long-term notes yesterday, marking the entry of the bank into the fixed income exchange.

The Ayala-controlled bank launched the offering of new long-term negotiable certificates of time deposit (LTNCTD) on Friday at the Philippine Dealing and Exchange Corp.

The issue was met with strong demand, prompting the lender to expand the initial offering of P5 billion. The P12.24-billion issuance is the single largest LTNCTD offering to date.

The notes will mature in 5.5 years and carry an interest rate of 3.75% to be paid quarterly until May 24, 2023. The issuance is the first tranche of BPI’s P30-billion LTNCTD offering approved by the central bank.

LTNCTDs are similar to regular time deposits, offering higher interest rates, but cannot be pre-terminated. Being “negotiable” means that these can be traded on the secondary market prior to maturity.

In an interview, BPI President and Chief Executive Officer (CEO) Cezar P. Consing said the long-term note was offered partly due to the lender’s intention to participate in funding the infrastructure push of the government.

“As a matter of fact we are doing this in preparation for helping fund the Build Build Build program of the government. …We are hoping that at least some of the proceeds of this go to the government infrastructure projects,” Mr. Consing said, noting that some of the funds will fund private sector projects as well.

Mr. Consing added that the fourth-biggest bank in asset terms might offer another long-term note “if the opportunity presents itself and there is a need.”

ING Bank N.V. Manila branch arranged the deal, and will also serve as selling agent together with BPI and BPI Capital Corp.

Meanwhile, PDS President and CEO Cesar B. Crisol said the company is expecting this year to surpass 2014’s listing volume of P190 billion.

“Hopefully, we can break our 2014 level of 190 billion. We have still a couple more by the end of the year. That should give us some positive results,” Mr. Crisol said, noting that about three more companies plan to issue bonds before year’s end.

BPI’s listing brings the total volume of new PDEx listings to P187.434 billion. Outstanding listed securities amount to P775.149 billion, floated by 46 companies.

Mr. Crisol added that the exchange and issuers are looking at how the US Federal Reserve acts on rates, as well as other global developments, in 2018.

“After that probably markets will digest that before coming up with firmer plans. But definitely, if infrastructure gets underway, financing requirements will result in more issuances by the market.”

Other big banks are also in the process of offering long-term paper to investors. Apart from BPI, Philippine National Bank, Security Bank Corp., Union Bank of the Philippines, and the Metropolitan Bank & Trust Co. have rolled out their own fund-raising plans through separate note offerings announced over the past few months.

On Thursday, another Ayala group company, Ayala Land Inc. listed P3.1 billion worth of short-dated notes, which will refinance maturing debt. — Karl Angelo N. Vidal

PSEi ends nearly flat amid lack of leads

November 25, 2017 | 12:01 am

THE PHILIPPINE STOCK EXCHANGE index (PSEi) managed to stage a last-minute rally on Friday to edge up from the past week, enabling the local benchmark to stay in step with several Asian peers.

Wall Street was closed for the Thanksgiving holiday.

PSEi climbed 21.88 points or 0.26% to close 8,365.11 — and up 0.65% from its 8,311.08 finish last Nov. 17 — while the all-shares index edged up by 5.75 points or 0.11% to end 4,889.12.

Even as earlier trading saw most of the six sectoral indices with losses, Friday ended with only two in negative territory.

Foreigners remained largely sellers for the fourth straight day, with Friday recorded the biggest net sales in that period.

“The PSEi traded in the red for most of the session. Thankfully, buying at the close lifted the index to 8,365.11…” RCBC Securities, Inc. said in a Stock Market Weekend Recap report attributed to research analyst Benjamin Ngan.

Luis A. Limlingan, managing director at Regina Capital Development Corp., said in a mobile phone message that investors scrounging for any market-moving news may have taken into consideration the European Central Bank’s release of minutes of its Oct. 26 meeting showing broad agreement on extending their asset purchases for nine months — while halving them — as part of policy normalization in the face of economic growth that has been picking up and anaemic inflation.

“The market still continues its consolidation,” Harry G. Liu, president at Summit Securities, Inc., said in a telephone interview.

“Unless there is a catalyst, it should be continuing its sideways behavior.”

A number of other bourses in Asia ended with gains, with Japan’s Nikkei 225 and TOPIX Index, Hong Kong’s Hang Seng Index, the Shanghai-Shenzhen CSI 300 and the MSCI AC Asia Pacific edging up 0.12%, 0.20%, 0.53%, 0.04% and 0.02%, respectively.

On the other hand, South Korea’s KOSPI index, the Straits Times Index and the S&P/ASX 200 index saw declines of 0.07%, 0.20% and 0.06%, respectively.

Four of the local bourse’s six sectoral indices managed to end the day with gains, though relatively flat from Thursday: property by 32.91 points or 0.84% to close 3,919.2, holding firms by 17.14 points or 0.2% to 8,492.27, financials by 15.5 points or 0.74% to 2,107.4 and industrials by 7.87 points or 0.07% to finish 10,967.33.

On the other hand, mining and oil dropped 141.82 points or 1.17% to finish 11,972.5 while services gave up 15.15 points or 0.92% to end 1,630.58.

Trading volume amounted to 1.802 billion shares worth P9.111 billion compared to Thursday’s 2.485 billion shares worth P4.41 billion.

Stocks that declined outnumbered those that advanced 102 to 87, while 52 others were unchanged.

Friday’s list of 20 most actively traded stocks saw Ayala Land, Inc. (up 3.73% to P44.50 apiece); Bank of the Philippine Islands (2.77% to P103.90); Jollibee Foods Corp. (1.73% to P258.40) and SM Investments Corp. (1.13% to P983.50 each) leading those that gained.

A day after Malacañang announced it has zeroed in on eight economic sectors and activities in its bid to open up the economy further to foreigners — including public utilities like telecommunications — Globe Telecom, Inc. and PLDT, Inc. led stocks that lost, by 4.81% to P1,780 apiece by 3.23% to P1,586 each, respectively.

RCBC Securities noted in its report that Globe and PLDT, as well as Robinsons Land Corp. (down 14.63% to P21 apiece) and parent JG Summit Holdings, Inc. (down 1.39% to P71 each) “jointly took 35.79 points from the index”.

Foreigners remained predominantly sellers for a fourth straight day, with Friday recording P461.278-million net sales that was the biggest amount in that period. — with inputs from P. P. C. Marcelo

Peso weakens amid US rate hike concerns; losses limited by remittances

November 25, 2017 | 12:01 am

THE peso closed weaker after the dollar strengthened in Asian trading on concerns US rates may head higher.

The peso closed at P50.72 against the dollar yesterday, against its P50.68 finish on Thursday. It opened at P50.65, with the intra-session low as P50.75. The high was P50.63.

Dollar volume rose to $751.65 million, from $604.7 million on Thursday.

“The peso traded a bit lower today as the dollar index corrected (upward) in tsian trading so we just rode that movement,” a trader said.

Guian Angelo S. Dumalagan, market economist at Land Bank of the Philippines, said concerns about a rate hike by the US Federal Reserve persisted.

“The peso depreciated today, as the dollar continued to correct upwards amid persistent US rate hike concerns, despite inflation uncertainty in the US,” Mr. Dumalagan said.

The likely Fed rate hike was mainly driven by an improving labor market amid continuing low inflation.

Ruben Carlo O. Asuncion, chief economist of Union Bank of the Philippines, said market participants focused on upbeat economic and corporate growth in the US.

“Investors are putting a premium on economic growth and earnings growth in the final stretch of 2017,” Mr. Asuncion said.

“Initially we thought the peso would plunge, but we saw peso buying in the afternoon session. The surge of remittances [yesterday] tempered the slump,” the first trader noted.

He added that the peso was buoyed by the Bangko Sentral ng Pilipinas announcement that it is not bound to follow Fed rates higher. — Karl Angelo N. Vidal

Primex takes over Stratosphere builder

November 25, 2017 | 12:01 am

REAL ESTATE developer Primex Corp. said it now owns 98.2% of its subsidiary that built the 31-storey Stratosphere in Makati.

On Friday, it told the stock exchange that it bought an additional 10.2% of the remaining 12% in Primex Realty Corp.

Primex described the unit as enjoying a “debt-free status like the parent company.”

“The acquisition was purchased at its book value price. The accretive acquisition is expected to beef up Primex’s land bank and enhance shareholders value in view of the tremendous earning potential of the properties upon development,” it said.

Primex Realty owns the 31-storey Stratosphere in Salcedo Village, Makati City as well as two prime properties in the Greenhills area, including the site of the upcoming Primex Tower along EDSA Connecticut Street in Greenhills, the parent firm said.

The parent company’s completed projects include two high-end residential projects, namely: Goldendale Village in Malabon and The Richdale along Sumulong Highway, Antipolo City.

It has also completed the development of Goldendale II and Tresor Residences, which are also in Malabon City.

On Friday, shares in Primex fell 1.04% to close at P6.64 each.

GOCC Oct. subsidies sharply higher at P10.28-B

November 25, 2017 | 12:01 am

SUBSIDIES to government-owned and -controlled corporations (GOCCs) surged in October as year-to-date remittances approach the P100-billion mark, data from the Bureau of the Treasury show.

The national government issued P10.28 billion worth of subsidies to GOCCs in October, up 578.67% from a year earlier.

The total was up 319.39% from September.

Of the 49 GOCCs, 12 received subsidies in October, against 11 a year earlier.

The Philippine Health Insurance Corporation, or PhilHealth, received P6.76 billion worth of subsidies in October, or 67.76% of the total.

This was followed by the National Irrigation Administration at P2.04 billion.

Other state-run firms that received financial help from the government are the Light Rail Transit Authority, Social Security System, and the Philippine Postal Corp. at P711 million, P274 milllion, and P134 milllion, respectively.

Subsidies are granted to state-led financial and non-financial institutions to cover operational expenses that are not supported by their revenue.

For the 10-month period, subsidies granted grew 11.93% year-on-year to P93.9 billion.

Subsidies remitted in the year to date are now equivalent to 61.69% of the P152.22 billion subsidies planned for the year. — Elijah Joseph C. Tubayan

NPC won’t rule out breach of Filipinos’ data in Uber hacking

November 25, 2017 | 12:01 am

By Patrizia Paola C. Marcelo

THE National Privacy Commission said it “cannot rule out” that data of Filipinos were compromised with the data breach of ride-sharing company Uber, after Uber Philippines (Uber Systems, Inc.) failed to provide the regulator with “vital” information.

Privacy Commissioner Raymund E. Liboro summoned Uber Philippines to a meeting to explain the breach reported by Uber CEO Dara Khosrowshahi.

Mr. Khosrowshahi, newly installed Uber CEO, had disclosed earlier this week that in late 2016, Uber discovered that hackers had inappropriately accessed user data, stored on a third-party cloud-based service the company uses, including personal information of 57 million Uber users around the world. The company also confirmed, as reported by Bloomberg, that it paid $100,000 to the hackers responsible, to delete the data and be quiet about the breach.

“The National Privacy Commission summoned Uber to a meeting on Thursday, November 23, 5:30 p.m., to discuss the self-reported breach that was admitted by the CEO of the transport network vehicle service company. Uber came to the meeting represented by its Data Protection Officer, Atty. Yves Gonzalez, accompanied by external counsel,” NPC said in a statement.

“Unfortunately, Uber failed to provide the Commission with vital information at the meeting, especially on whether Filipino data are involved, citing limited information from their US Office. We cannot rule out at this time that any Filipino data was compromised.”

NPC said it has set a 48-hour deadline for Uber Philippines to give information about the breach.

“Uber committed to respond in detail to the Commission’s queries about the nature of the breach, what data was involved, and what measures were applied to address the breach, as soon as confirmed data becomes available,” NPC said.

The NPC said it has reminded Uber that under the Data Privacy Act of 2012, the concealment of a data breach involving sensitive personal information or information that can be used to enable identity fraud is a punishable criminal offense.

The NPC added that it has tapped its network of privacy regulators, particularly the Federal Trade Commission of the US, to share information on this incident.

According to news reports, a spokesperson for the US FTC said the commission was “closely evaluating the serious issues raised” by the breach and Uber’s failure to disclose it.

Regulators in the United Kingdom and Australia are also conducting their own inquiries.