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BPI wins approval from PSE for up to P50-B rights offer

By
Jino Nicolas
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BANK of the Philippine Islands (BPI) said it obtained approval from the Philippine Stock Exchange (PSE) to conduct a stock rights offering (SRO), with the proceeds to help fund to fund its business expansion.

In a disclosure to the bourse on Friday, BPI said the PSE approved its rights offering to raise up to P50 billion.

The price of the rights shares will be announced on March 27, while the offer will be conducted from April 16 to 25.

The SRO is open to elegible common shareholders of the bank as of April 6.

Ayala Corp. (AC), one of BPI’s principal shareholders, has expressed its support for the rights offering, saying it will exercise it preemptive rights. AC will purchase additional shares prior to the general public offering.

According to BPI, the proceeds from the capital raising exercise will be used to fund the expansion of its loan portfolio particularly in the consumer, small to medium enterprises and microfinance segments.

The proceeds will also finance the expansion of its delivery infrastructure via investments in digitalization as well as additional branches of BPI, BPI Family Bank and BPI Direct BanKo.

BPI Capital Corp. will act as the sole global coordinator and lead manager as well as domestic manager, bookrunner and underwriter, while Deutsche Bank AG Hong Kong branch, Goldman Sachs (Singapore) Pte. and J.P. Morgan Securities will serve as the joint international bookrunners and underwriters.

Aside from BPI, other banks have also announced plans to conduct SROs.

On Wednesday, Metropolitan Banking & Trust Co. said it will offer 799.8 million common shares priced at P75 apiece from March 22 to April 4.

The SRO is expected to raise P60 billion which will also be used to fund loan portfolio expansion as well as to fully acquire its credit card arm Metrobank Card Corp. from ANZ Funds Pty. Ltd.

Meanwhile, Rizal Commercial Banking Corp. plans to raise P15 billion from an SRO. Proceeds will help expand its loan business as well as strengthen capital to Basel 3 standards.

In 2017, BPI booked a net profit of P22.42 billion, up 1.7%, amid net interest income of P48.04 billion.

BPI shares were flat Friday, Mar 16 at P114.7. — Karl Angelo N. Vidal

Eagle Cement nets P4.26B in 2017

By
Jino Nicolas
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0

EAGLE Cement Corp. reported a net income of P4.26 billion in 2017, up 4% from the previous year, amid cost efficiencies and as sales exceeded targets, the company told the stock exchange on Friday.

“We have continued to beat our operational targets in terms of volume growth and cost efficiencies. Our efforts in upgrading and debottlenecking of our existing production lines allowed us to keep healthy margins despite the challenging market environment,” said John Paul L. Ang, Eagle president and chief executive officer, in a statement.

The company attributed the higher income last year to higher sales volume, with net sales reaching P14.87 billion, higher by an annual 12%.

Excluding expenses relating to its initial public offering, net profit rose by 5% to P4.33 billion last year, it said.

Eagle is currently expanding its capacity, with its third production line in Bulacan set to start operations this year. The move is in line with the infrastructure push from both public and private sectors, it said.

Line 3 is expected to expand Eagle’s annual production capacity to 7.1 million metric tons and reach new markets, including Ilocos Region, Mimaropa (Occidental Mindoro, Oriental Mindoro, Marinduque, Romblon and Palawan), Bicol Region in Southern Luzon, and as far as Western Visayas.

In November last year, Eagle broke ground on its fourth production line in Malabuyoc, Cebu, marking its reach nationwide. The company said the project is on track for its target completion in 2020. The new line will add another two million metric tons to annual production capacity.

Line 4 will include a manufacturing plant and a marine terminal to serve Negros, Cebu, Bohol, Masbate, Misamis Oriental, Davao, Zamboanga and South Cotabato.

On Friday, shares in Eagle were unchanged at P14.68 each. — Victor V. Saulon

Stocks close higher on bargain-hunting; Jollibee up more than 7%

By
Jino Nicolas
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0

SHARE prices closed higher Friday, propelled by bargain-hunting late in the session, with blue chips leading the main index higher as Jollibee posted a gain of more than 7%.

The Philippine Stock Exchange Index (PSEi) closed at 8,238.15, up 48.14 points or 0.59%, while the all-shares index closed at 4,982.50, up 16.06 points or 0.32%.

“In a stunning upward performance at the close, the PSEi’s value turnover reached a whopping P19.7 billion on the back of the FTSE recovery. The index managed to hold however, despite net foreign selling of P2.5 billion, the highest figure so far for this year,” Gio Perez of Papa Securities said in an e-mail.

The FTSE 100 closed higher on March 15, halting a three-day skid. It ended at 7,139.76, up 0.19%.

Jollibee Foods Corp. led the recovery with a 7.5% gain, ending at 305.40. SM Investments Corp ended 2.68% higher.

“The market’s performance Saturday, Mar 17 was due to bargain-hunting after the dip this morning sent the index into correction territory. Last-minute buying further lifted the index after JFC surprisingly closed strong Saturday, Mar 17 by 7%. Sy companies also helped the index stay above 8,200 after investors bought more of these stocks after they dclined in the double digits from their record highs last January,” Jervin S. de Celis, equities trader at Timson Securities Inc said in a message.

Holding firms closed at 8,484.16, up 1.22 points or 0.02%; industrials at 11,619.42, up 199.38 points or 1.75%; services at 1,729.23, up 5.04 points or 0.29%; and property at 3,713.03, up 58.47 points or 1.60%.

Mining and oil stocks were down 180.22 points or 1.58% at 11,222.83; while financials were down 2.65 points or 0.12% at 2,141.83.

Value traded was P19.7 billion. Decliners outnumbered advancers 139 to 74 while 42 were flat. — Patrizia Paola C. Marcelo

Energy dep’t to use DoST-developed software for disaster preparations

By
Jino Nicolas
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0

THE Department of Energy (DoE) will be using software made by the Department of Science and Technology (DoST) to enhance its capacity in preparing for calamities, including earthquakes, after the two signed a memorandum of agreement to formalize their cooperation.

“We need all available tools and technologies to enhance our resiliency planning and implementation,” DoE Secretary Alfonso G. Cusi said, as he pointed to the threat of calamities such as a magnitude 7.2 earthquake and the risks they pose to the energy sector.

The DoE said the agreement with the DoST was timely, and comes after the 6.5 magnitude earthquake that struck the Visayas in 2017, limiting the delivery of electricity in Leyte, Samar and Bohol. It said the incident last year exposed the vulnerability of the country’s energy systems to earthquakes.

Mr. Cusi said it is the mandate of the DoE “to ensure that energy services will be available to everyone immediately after an emergency situation.”

The deal with the DoST seeks to enhance the capacity of the energy sector on hazard, risk assessment and exposure database development through the use of a Filipino-made software called Rapid Earthquake Damage Assessment System (REDAS).

Mr. Cusi signed the agreement with DoST Undersecretary Renato U. Solidum Jr.

REDAS can be used as a tool for emergency preparedness, contingency planning and mainstreaming disaster risk reduction.

Under the MoA, the DoE and the DoST’s Philippine Institute of Volcanology and Seismology (Phivolcs) will pursue intensive REDAS training, “endeavor knowledge and resources sharing to complement each other on the implementation of the program, among other assistance and cooperation needed for the attainment of the goals and objectives to prepare the energy sector on possible earthquake hazards,” the Energy department said.

“REDAS will be helpful in providing quick and near-real-time simulated earthquake hazard information to disaster managers which will help them in assessing the distribution and extent of the impacts of a strong earthquake to their people and assets. The data generated could also provide information and insights for better resource management and asset resiliency,” it said.

The software can also be used to calculate ground-shaking, earthquake-induced landslides, liquefaction and even tsunamis.

Its other features include earthquake-sorting, generating seismicity maps, onscreen map digitization and building of database on earthquake hazard risks as well as wind hazards. — Victor V. Saulon

Senators: Charter change not to extend terms

By
Jino Nicolas
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SENATE President Aquilino Martin L. Pimentel III on Friday allayed concerns by some local groups in Baguio City over charter change being fast-tracked to extend President Rodrigo R. Duterte’s term.

“Our party (referring to PDP-Laban) has been advocating for federalism since 1982….This is not for the President. Don’t be afraid of the ghost that isn’t really there,” he said at the Senate hearing on charter change held at the University of the Cordilleras in Baguio City.

The Senate committee on constitutional amendments and revision of codes, chaired by Senator Francis N. Pangilinan, is on its fourth leg of regional consultative hearings in Baguio City. Among the other senators present at Friday’s hearing were Senators Paolo Benigno A. Aquino IV, Panfilo M. Lacson and Maria Lourdes Nancy S. Binay.

Youth and indigenous peoples (IPs) groups told the hearing that Mr. Duterte and his allies wanted to hasten charter change in order to extend their terms.

“In the course of charter change, we see Duterte being the proponent, the House of Representatives, the allies of the President who are so keen on rushing that they want (to) omit the Senate in the process,” said Maria Meryll Isidro of the Student Council Alliance of the Philippines.

“The CPA is critical of present attempts to amend or revise the 1987 Constitution for we believe it is not limited to proposing a shift to federalis as the efforts are actually aimed at granting the President dictatorial powers,” said Abigail Anongos of the IP group Cordillera Peoples Alliance (CPA) Committee.

Mr. Pimentel defended the ruling party’s federalism advocacy, stressing that they wanted regional empowerment and decentralization of resources to be elevated as constitutional concepts.

“We want it to be constitutional concepts so it’s demandable as a matter of right by the beneficiaries of the set-up like the local government unit,” he said.

He clarified that the Senate is not rushing charter change, adding that: “The public should understand this first. If there is no solidarity, if the concept of solidarity is not embedded in our hearts and minds, I will be the one (to) say that we should not proceed with federalism.”

“My advice is: read all the proposals but don’t be alarmed (by) the proposals because these are not the official proposals…If the Office of the President releases the official version, let us criticize or support,” he added.

For his part, National Commission for Indigenous Peoples (NCIP) commissioner in Cordillera Basilio A. Wandag said indigenous peoples have called for the inclusion of an “IP state” as among the proposed federal states in the country based on the agency’s consultations with the IP groups.

“Should the change bring about a new system of government from unitary to federal, we want a place in it. It must include an ICC (indigenous cultural communities), IP state or states or region, autonomous region, or special region or whatever it may be called,” he said.

Integrated Bar of the Philippines (IBP) Baguio-Benguet Chapter President Alan Antonio S. Mazo proposed the creation of a “Deputy Chief Justice” position who would later become Supreme Court Chief Justice upon the retirement of the incumbent SC chief.

“My reason is to insulate the judiciary further from any political pressure,” he said. — Camille A. Aguinaldo

Peso closes stronger as trade war fears sink dollar

By
Jino Nicolas
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0

THE peso strengthened against the dollar Friday, Mar 16 with the US currency weakened by fears of a broader trade war after the White House imposed tariffs on steel and aluminum imports.

The peso closed Friday’s session at P51.93 against the dollar, against its Thursday finish of P52.03.

The peso opened at P52.10, and hit an intraday low of P52.11. The closing level was also the high for the day.

Volume soared to $835.6 million on Friday from $465.5 million Thursday.

“We finally broke the range. We’re seeing a weaker dollar against global currencies, particularly the Singapore dollar and the yen,” a trader told BusinessWorld in a phone interview.

Another trader noted that the dollar weakened in response to statements from the White House that it can avoid a trade war.

Peter Navarro, a White House economic adviser has said that the US can implement tariffs “without instigating a trade war,” the second trader said in an e-mail.

Mr. Navarro told CNBC that the imposition of 25% duty on steel and 10% tariff on aluminum is in the US economy’s interest with no intent to provoke.

“Our allies have got to understand that we’re simply defending ourselves against what’s been an unfair relationship for many, many years,” Mr. Navarro said in the television interview.

The dollar’s weakness may have reflected skepticism that the US could avoid a trade war, which was shared by some Republicans like Speaker Paul Ryan.

“We are extremely worried about the consequences of a trade war and are urging the White House to not advance with this plan,” Mr. Ryan’s spokeswoman AshLee Strong said earlier this month.

“This remark has increased concern on the possible impact of tariffs on the global economy,” the second trader said.

UnionBank of the Philippines chief economist Ruben Carlo O. Asuncion said: “The dollar dropped because of the political uncertainties in the Trump administration,” adding that the local currency’s strength may have also come from “major movement in the government’s infrastructure program” with the signing of the Japanese subway loan. — Karl Angelo N. Vidal

Asia stocks slip, yen gains amid political turmoil

By
Jino Nicolas
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0

A rally in Asian stocks petered out on Friday, and the yen climbed, as investors considered the implications of continuing personnel turmoil in the Trump administration.

Japan’s currency, often the go-to asset in times of uncertainty, rose after the Washington Post reported that President Donald Trump plans to remove his national security adviser, something White House Press Secretary Sarah Huckabee Sanders later denied was happening. Stocks were already lower in the region before the reports, with a lackluster session in the U.S. overnight offering little fresh direction ahead of next week’s Federal Reserve policy meeting. Ten-year Treasury yields ticked lower and are heading for a weekly drop after a softer tone in U.S. economic data.

Any removal of H.R. McMaster as the national security adviser would follow the resignation of the White House’s top economic adviser, Gary Cohn, and the ouster of the secretary of state. Investors were earlier weighing the prospects for heightened U.S. trade protectionism after new White House appointee Larry Kudlow said he’d sell gold and buy the greenback, which gained on Thursday.

“Those developments are negative for dollar-yen and the Nikkei,” Tohru Sasaki, head of Japan markets research at JPMorgan Chase & Co. in Tokyo, said of the news on the departure of top U.S. policy makers. At the same time, “the market is getting used to political problems,” both in the U.S. and Japan, he said on Bloomberg Television — so moves may be short-lived.

A political scandal in Japan, with the potential resignation of the country’s finance minister, remains a focus for traders. Weekend poll results on Prime Minister Shinzo Abe’s approval rating may prove key. Also upcoming is a Monday vote in China’s legislature on the next central bank chief in the world’s second-biggest economy.

Elsewhere, West Texas crude steadied above $61 a barrel as signs of stronger U.S. fuel consumption balanced OPEC’s forecasting for the first time that new supplies from its rivals will exceed demand growth this year.

Here are some of the key things happening as the week ends:

Revised Japanese industrial production data are out on Friday. EU27 government officials discuss the European Union’s Brexit position.

And these are the main moves in markets:

Stocks

Japan’s Topix index slipped 0.4 percent at close in Tokyo. The Shanghai Composite lost 0.3 percent and Hong Kong’s Hang Seng Index slid 0.2 percent. South Korea’s Kospi pared losses to 0.1 percent. Futures on the S&P 500 Index were down 0.1 percent after the underlying gauge on Thursday fell 0.1 percent, bringing this week’s loss to 1.4 percent.

Currencies

The Bloomberg Dollar Spot Index was little changed after advancing 0.5 percent on Thursday for its biggest rise in over two weeks. The euro was flat at $1.2302. The yen gained 0.4 percent to 105.88 per dollar.

Bonds

The yield on 10-year Treasuries slid about one basis point to 2.82 percent. Australia’s 10-year yield dropped three basis points to 2.68 percent.

Commodities

West Texas Intermediate crude gained rose to $61.18 in a third day of gains. Gold was steady at $1,316.62 an ounce after falling 0.7 percent on Thursday. — Bloomberg

Singapore still world’s costliest city; Paris, Zurich second

By
Jino Nicolas
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0

Singapore is the world’s most expensive city for the fifth straight year in the Economist Intelligence Unit’s latest Worldwide Cost of Living report, with Paris and Zurich tied for second place.

Asia Pacific and European destinations dominated the ranks of costliest cities identified in the report released this week. Tokyo and Osaka were conspicuous in their absence from the top 10, edged out by low inflation. The EIU survey is designed to help companies calculate cost-of-living allowances and build compensation packages for expatriates and business travelers.

As recent as 2013, Tokyo was the world’s costliest city to live in. The Japanese capital dropped seven places to 11th over the past year. Hong Kong, last year’s second-most expensive city, slipped to fourth place.

Sydney rose four notches to break into the top 10, with Oslo, Geneva, Zurich and Copenhagen also climbing the list compiled from a survey of 160 items across 133 countries.

“Currency fluctuations continue to be a major cause for changes in the ranking,” the EIU said.

A weakening dollar meant no American city was among the 10 most expensive despite a rise in the relative cost of living in the U.S. over recent years, the EIU said. The report named New York and Los Angeles as the 13th and 14th costliest, down from ninth and 11th position last year.

The dollar fell against all G-10 currencies last year, with the euro rising more than 14 percent.

Paris is the only euro zone city among the top 10 most expensive even as the euro rallied. The EIU said the French capital remained “structurally extremely expensive to live in, with only alcohol, transport and tobacco offering value for money compared with other European cities.”

Tel Aviv was the sole Middle East metropolis among the top 10. Transport costs there are 79 percent above New York prices, the report found.

Car ownership was a factor behind Singapore’s top ranking. However, the report noted that the city-state remains significantly cheaper than its peers in terms of household goods and hiring domestic help.

Though Asia is home to the world’s most expensive places to live, it also has some of the most affordable. South Asian cities including Bangalore, Chennai, Karachi and New Delhi provided good value for money, the report noted. This year, the Syrian capital of Damascus and Venezuela’s Caracas were ranked the world’s cheapest. — Bloomberg

Eagle Cement posts 4% profit growth in 2017

By
Jino Nicolas
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0

Eagle Cement Corp. reported a net income of P4.26 billion in 2017, up 4% from the previous year, as sales volume and cost efficiencies exceeded targets, the company told the stock exchange on Friday, March 16.

“We have continued to beat our operational targets in terms of volume growth and cost efficiencies. Our efforts in upgrading and debottlenecking of our existing production lines allowed us to keep healthy margins despite the challenging market environment,” said John Paul L. Ang, Eagle president and chief executive officer, in a statement.

The company attributed the higher income last year to higher sales volumes, with net sales reaching P14.87 billion, higher by 12% compared with the figure in the earlier year.

Excluding expenses relating to its initial public offering, net profit rose by 5% to P4.33 billion last year, it said.

Eagle is currently expanding its capacity, with its third production line in Bulacan set to start operations this year. The move is in line with the infrastructure push from both public and private sectors, it said.

On Friday, shares in Eagle were unchanged at P14.68 each. — Victor V. Saulon

Stocks rebound on bargain hunting

By
Jino Nicolas
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0

Local markets recovered on Friday, March 16, from bargain hunting and performance of blue chips.

The Philippine Stock Exchange Index (PSEi) closed at 8,238.15, during the closing hour, higher by 48.14 points or 0.59%, while the all-shares index closed at 4,982.50, higher by 16.06 points or 0.32%.

“In a stunning upward performance at the close, the PSEi’s value turnover reached a whopping P19.7B on the back of the FTSE rebalancing. The index managed to hold however, despite net foreign selling of P2.5B, the highest figure so far for this year,” Gio Perez of Papa Securities said in an e-mail.

The FTSE 100 closed higher on Mar. 15, halting a three-day skid. It ended at 7,139.76, 0.19% higher.

SM and Jollibee Foods Corp. led the recovery, with JFC closing at 7.5% higher, ending at 305.40. SM Investments Corp ended 2.68% higher.

“The market’s performance today was sort of a bargain hunting after the dip this morning sent the index to its correction territory. Last minute buying during the market run off further lifted the index after JFC surprisingly closed strong today by 7%. Sy companies also helped the index stay above 8,200 after investors bought more of these stocks for declining double digits since reaching their record highs last January,” Jervin S. de Celis, equities trader at Timson Securities Inc said in a message.

Holding firms closed at 8,484.16, up by 1.22 points or 0.02%; industrial at 11,619.42, up by 199.38 points or 1.75%; services at 1,729.23, up by 5.04 points or 0.29%; and property at 3,713.03 higher by 58.47 points or 1.60%.

Mining and oil were down by 180.22 points or 1.58%, to end at 11,222.83; while financials were down by 2.65 points or 0.12% to end at 2,141.83.

Total value traded was P19.7 billion. Losers outnumbered advancers 139 to 74 while 42 were flat. — Patrizia Paola C. Marcelo

Supreme Court asked to force Sereno to submit missing SALN, psychological tests

By
Jino Nicolas
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0

A petition has been filed requesting the Supreme Court (SC) to force Chief Justice Maria Lourdes P.A. Sereno to submit missing requirements in her appointment as top magistrate.

Atty. Romeo B. Igot on Friday, March 16, submitted a mandamus and/or prohibition petition that asked Ms. Sereno “to submit her SALNs (Statement of Assets, Liabilities, and Net Worth) covering the missing years 2003 to 2005 and 2007 to 2008 as well as to show evidence that she indeed passed the psychological examination administered on her.”

The petition said that should Ms. Sereno fail to do the above mentioned, she should “be prohibited from further assuming her functions as the Chief Justice of the Supreme Court and to declare her appointment as Chief Justice of the Philippine Supreme Court null and void.”

Ms. Sereno — who is currently taking her indefinite leave — faces impeachment for alleged graft and corruption.

She is also facing a quo warranto petition filed by Solicitor General Jose C. Calida that argues her appointment was void for not being able to submit her SALNs.

Mr. Igot, however, claimed his petition — which uses the same arguments as Mr. Calida’s quo warranto — “is the fastest way to remove the Chief Justice.”

According to the English Oxford Dictionary, a mandamus is “a judicial writ issued as a command to an inferior court or ordering a person to perform a public or statutory duty,” while a prohibition is ” a writ from a superior court forbidding an inferior court from proceeding in a suit deemed to be beyond its cognizance.” — Dane Angelo M. Enerio

DoTr unveils expanded Tacloban airport terminal

By
Jino Nicolas
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0

The Department of Transportation (DoTr) on Friday, March 16, inaugurated the expanded passenger terminal building (PTB) of the Daniel Z. Romualdez Airport in Tacloban City.

The current expansion increased the total floor area of the PTB to 1,100 square meters and added 275 seats to the departure area, to a total of 635 seats from 360 seats before the extension.

The project was implemented to address the growing demand for space in the airport. Included in the project are the expansion of the check-in and pre-departure areas. The project was funded through the CAAP Infrastructure Project from 2016, with an approved budget of P20 million and a contract amount of P17.33 million.

Ongoing since October 2017 are the construction of asphalt overlays, a newly designed parking area, shore protection, and site development for the new terminal area that includes a one-kilometer perimeter fence.

DoTr Secretary Arthur P. Tugade said these improvements will be completed by January next year. — Patrizia Paola C. Marcelo

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