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SEC eyes declassification of listed firms’ common shares

BW FILE PHOTO

By Revin Mikhael D. Ochave, Reporter

THE Securities and Exchange Commission (SEC) is proposing to declassify the Class A and B common shares of all listed companies to improve trading efficiency.

“To ensure efficiency in executing and settling equity trades, the classification of common shares into Class A and Class B of all the listed companies shall be discontinued,” it said in an April 25 draft memorandum circular posted on its website.

The SEC issued the circular to revise the rules allowing the trading of B shares on the regular board and requiring buyers to accept either A or B certificates.

“The classification of the A and B shares has been a source of administrative inefficiencies for the trading participants and the Securities Clearing Corp. of the Philippines, as well as unwarranted arbitrage for holders of Class B shares,” the corporate regulator said.

Class A shares are stocks issued to Filipino citizens, while Class B shares may be issued to both Filipinos and foreign investors.

Some listed companies that have Class A and B shares include holding company ATN Holdings, Inc., miner Benguet Corp. and construction material supplier Concrete Aggregates Corp.

The SEC said there are still several listed companies with Class A and B common shares “for the sole purpose of monitoring equity ownership of local and foreign investors, as these shares bear the same rights, privileges and entitlement to dividends.”

In September 1973, the SEC released guidelines to monitor foreign ownership through the classification of common shares of publicly listed companies into Class A and B shares, ensuring that the 60% local and 40% foreign stock ownership requirement is met.

In May 1997, it ordered the Philippine Stock Exchange (PSE) to declassify shares of companies going public to eliminate the “unfair price disparity” between Class A and B shares. However, the declassification was applied prospectively.

“The phase-out is warranted because that share classification structure hasn’t served any practical purpose ever since the PSE introduced an effective system for monitoring foreign ownership limits,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

“It becomes simpler for investors as there’s just a single class of common shares to trade. Furthermore, it removes unnecessary arbitrage because the market is pricing only one kind of common stock,” he added.

Jarrod Leighton M. Tin, an equity research analyst at DragonFi Securities, Inc., said the proposal would improve liquidity.

“It’s good for companies with A and B shares as it will increase stock liquidity as both foreign and local investors can now trade the company under a single ticker symbol,” he said in a Viber message.” “B shares are generally more illiquid and often have tracking error relative to the A shares.”

“It also helps a bit in overall market liquidity because if there are too many ticker symbols but few market players, it can actually worsen market illiquidity since there are too many stocks to choose from,” he added.

The SEC proposed that listed companies amend their articles of incorporation to reflect the declassification within a year from the draft circular’s effectivity.

“During the period to amend the articles of incorporation, buyers on the regular board shall accept the delivery of the specific class of shares that they have purchased and paid for, and shall not be compelled to receive an alternative class of shares,” it said.

Comments on the draft circular will be accepted until May 24.

Rates of central bank securities end lower with both tenors oversubscribed

BW FILE PHOTO

YIELDS on the central bank’s short-term securities ended lower on Friday, with strong demand seen for both tenors.

The Bangko Sentral ng Pilipinas (BSP) bills fetched bids amounting to P149.916 billion on Friday, higher than the P80-billion offer and the P124.432 billion in tenders for the P120 billion auctioned off a week prior. The central bank awarded P80 billion in securities as planned.

Broken down, tenders for the 28-day BSP bills reached P69.713 billion, well above the P30 billion placed on the auction block and the P40.817 billion in bids for the P40-billion volume offered in the previous week. The central bank fully awarded the one-month papers.

Banks asked for rates ranging from 5.625% to 5.738%, lower than the 5.65% to 5.849% margin seen a week earlier. This caused the average rate of the one-month securities to decline by 6.55 basis points (bps) to 5.7135% from 5.779% previously.

Meanwhile, bids for the 56-day bills amounted to P80.203 billion, higher than the P50-billion offering but below the P83.615 billion in tenders for the P80-billion offer by the central bank a week prior. The BSP also made a full award of the two-month bills.

Accepted yields were from 5.649% to 5.74%, lower than the 5.65% to 5.8% band seen a week prior. With this, the average rate of the 56-day securities dropped by 4.13 bps to 5.7135% from 5.7548% logged in the previous auction.

The central bank decreased last week’s total offering of BSP bills (BSPB) compared with the volume put up for auction the prior week and fully awarded both tenors amid strong demand, BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement.

“The 28-day BSPB was 2.3 times oversubscribed and the 56-day BSPB was 1.6 times oversubscribed,” he said.

“The decline in BSPB rates continued to reflect the partial pass-through of the 25-bp reduction in the policy rate on April 11,” Mr. Dakila added.

The Monetary Board this month resumed its rate-cutting cycle, delivering a 25-bp cut to bring the policy rate to 5.5%.

The central bank uses the BSP securities and its term deposit facility to mop up excess liquidity in the financial system and to better guide short-term market rates towards its policy rate.

The BSP bills also contribute to improved price discovery for debt instruments while supporting monetary policy transmission, the central bank said.

The central bank securities were calibrated to not overlap with the Treasury bill and term deposit tenors also being offered weekly.

Data from the central bank showed that around 50% of its market operations are done through the short-term BSP bills.

The BSP bills are considered high-quality liquid assets for the computation of banks’ liquidity coverage ratio, net stable funding ratio, and minimum liquidity ratio.

They can also be traded on the secondary market. — Luisa Maria Jacinta C. Jocson

Ukraine detains foreign vessel it says was exporting stolen grain

REUTERS

KYIV —  Ukraine has detained a foreign vessel in its territorial waters which it alleges was involved in the illegal trade of stolen Ukrainian grain, the state security service SBU said on Friday.

Kyiv has accused Russia of trading stolen Ukrainian grain since the 2022 war in Ukraine began, allegations Russia denies.

Ship seizures, however, have been rare.

“The investigation found that the arrested vessel was part of Russia’s ‘shadow’ fleet, which the Kremlin uses to sell looted Ukrainian grain to third countries,” SBU said on the Telegram messaging service.

It said that at the end of 2024, the same vessel had exported from the Crimean port of Sevastopol 5,000 metric tons of wheat stolen from the occupied southern Ukrainian territory.

SBU said the vessel had carried out an illegal raid under the flag of an Asian country to export the grain. It gave no more details.

In July Ukraine seized a foreign cargo ship on the Danube River and detained the captain on suspicion of helping Moscow export Ukrainian grain from Russian-occupied Crimea.

Findings of its investigation into that case were not reported. — Reuters

Quezon City takes fabric scraps and uses them for clothing — again

NICHOLE SAMSON

QC follows up sustainable fashion show with kiddy sequel

LAST YEAR Quezon City’s (QC) Earth Month offering, Retashow: QC’s Walk to Sustainability, was successful in promoting one of the city’s sustainability initiatives, the Kilo/s Kyusi Store within the city hall complex. There, secondhand clothes are sold by the kilogram, inspired by a business model seen in Paris thrift stores. Since last year, the initiative has earned P2 million. The proceeds are going on to fund the city’s Learning Recovery program, which pays for tutors for public school students underperforming in reading and math.

This was according to Quezon City mayor Josefina “Joy” Belmonte, who opened this year’s Retashow: Kidswear Edition, held at Gateway Mall 2 at the Araneta City in Cubao. She added that the initiative diverted four tons of textile waste from landfills, while 700 kilograms worth of textiles have been upcycled by community artisans.

Some of these community artisans were at the show on April 23. Last year, they chose one winner and two runners-up; this year, they awarded six winners with P50,000 each: included in the criteria were design, originality, wearability and feasibility, as well as the condition that the clothes must be made with at least 70% recycled textiles.

The six winners were Nard Patrick Redoble, Nichole Samson, Katherine Añonuevo, Ma. Joy Pauline Castillano, Hazel Roldan, and Neil Bryan Capistrano.

Mr. Redoble showed off an outfit with neon shades that reminded us of watermelons and other fruits; while Ms. Samson’s child model took off his patchwork hat and unfolded it into a bag. Ms. Añonuevo’s creation used indigenous fabric, whose design and color were inspired by a bottle of Mountain Dew soda (according to a voiceover).

Ms. Castillano’s creation involved one of our favorite things from this competition, a vest made from discarded neckties, while Ms. Roldan used flour sacks for a preppy outfit worn by the child model on the runway. Finally, Mr. Capistrano made a chic jacket out of woven denim strips.

On a personal note, in her speech, Ms. Belmonte spoke about her own experiences with sustainability before it even became a buzzword. She would receive hand-me-downs from all three of her brothers (who include BusinessWorld Chief Executive Officer Miguel Belmonte). “Kaya po medyo tomboyish ako noong lumalaki ako (That’s why I was a bit of a tomboy growing up),” she said. “But that is an example of reuse, and sustainable action.”

The mayor still retains a bit of the girl who wore her brothers’ old clothes: during her speech, she showed pictures of herself wearing the same outfit on different occasions. “I am a very proud outfit repeater. By choice, by practice. Wearing the same clothes to different events isn’t an accident. It is a statement that practicality is powerful. Repeating outfits is smart, sustainable, and should be normalized.”

The mayor, who was named 2023 Champion of the Earth by the United Nations Environment Program (UNEP), went on to say that “Walang masama sa kagustuhang maging presentable o fashionable. Pero may mga tanong tayong kailangang itanong: saan galing ang damit na ito? Sino ang gumawa? Ano ang epekto nito sa kalikasan (There is nothing wrong with wanting to be presentable or fashionable. But there are questions we need to ask: where are these clothes from? Who made them? What is their effect on the environment)?

“Behind every shirt, every pair of jeans, is a story. Not just of creativity or commerce, but of labor, waste, and environmental cost.” — Joseph L. Garcia

Pope Francis: Servant-leader to the world

CHURCH ENGLAND AND WALES/MAZUR/CATHOLICNEWS.ORG.UK

On Easter Sunday, April 20, Pope Francis blessed all from the central loggia of St. Peter’s Basilica — “Urbi et Orbi” (To the city [Rome] and to the world).

“On this day, I would like all of us to hope anew and to revive our trust in others, including those who are different than ourselves, or who come from distant lands, bringing unfamiliar customs, ways of life, and ideas! For all of us are children of God!,” he said.

Pope Francis did not himself deliver his speech, but he sat quietly in his wheelchair on the balcony as his prayers were read out to the multitude at St. Peter’s Square in Rome, and to the world.

“May the light of peace radiate throughout the Holy Land and the entire world… (Pray for) Israel, and for all the Israeli people and the Palestinian people. The growing climate of anti-Semitism throughout the world is worrisome. (Pray) for the people of Gaza… where the terrible conflict continues to cause death and destruction and to create a dramatic and deplorable humanitarian situation. I appeal to the warring parties: Call a ceasefire, release the hostages, and come to the aid of a starving people that aspires to a future of peace!

“Let us pray for the Christian communities in Lebanon and in Syria, presently experiencing a delicate transition in its history. They aspire to stability and to participation in the life of their respective nations;

“…for the people of Yemen, who are experiencing one of the world’s most serious and prolonged humanitarian crises because of war, and I invite all to find solutions through a constructive dialogue;

“…for Ukraine, devastated by war. I encourage all parties involved to pursue efforts aimed at achieving a just and lasting peace;

“…for the South Caucasus and pray that a final peace agreement between Armenia and Azerbaijan will soon be signed and implemented, and lead to long-awaited reconciliation in the region;

“…for harmony in the western Balkans and sustain political leaders in their efforts to allay tensions and crises, and, together with their partner countries in the region, to reject dangerous and destabilizing action;

“…for the African peoples who are victims of violence and conflict, especially in the Democratic Republic of Congo, in Sudan and South Sudan; for tensions in the Sahel, the Horn of Africa, and the Great Lakes region, as well as those Christians who in many places are not able freely to profess their faith;

“…for the people of Myanmar, plagued by long years of armed conflict, who, with courage and patience, are dealing with the aftermath of the devastating earthquake in Sagaing, which caused the death of thousands and great suffering for many.

“Men and women in our world, in their hunger for wealth and power, consume even their neighbors, their brothers and sisters,” he said. “How many wars have we seen! And in how many places, even today, are human dignity and freedom treated with contempt!

“I appeal to all those in positions of political responsibility in our world not to yield to the logic of fear, which only leads to isolation from others, but rather to use the resources available to help the needy, to fight hunger and to encourage initiatives that promote development. These are the ‘weapons’ of peace: weapons that build the future instead of sowing seeds of death!

“There can be no peace without freedom of religion, freedom of thought, freedom of expression, and respect for the views of others. May the principle of humanity never fail to be the hallmark of our daily actions… In this jubilee year, may Easter also be a fitting occasion for the liberation of prisoners of war and political prisoners!”

Pope Francis blessed not only the 1.406 billion Catholics worldwide, but all the world. “Buona Pasqua (Happy Easter)!”

On Easter Monday, April 21, Pope Francis passed away peacefully at 7:35 a.m. in his room at Casa Santa Marta, a Vatican guesthouse where he chose to live instead of the Apostolic Palace since his election as Pope in 2013. His health problems this year started in early February with an initial diagnosis of bronchitis, which over a month degenerated into respiratory tract infections and then bilateral pneumonia. Pope Francis suffered episodes of acute respiratory failure and early kidney failure. After five weeks, he left Rome’s Gemelli Hospital to recuperate at home.

The world was shocked to know of Pope Francis’ fatal stroke and passing when all thought he had hurdled his health challenges. Why, we watched him ride in the popemobile on Easter Sunday after the Urbi et Orbi blessing on the balcony of St. Peter’s Basilica, waving to the ecstatic crowd of 50,000 at St. Peter’s Square! We are so saddened by the loss of a great, well-loved servant-leader of the world. Pope Francis belonged to the world.

Pope Francis (born Jorge Mario Bergoglio; Dec. 17, 1936 — April 21, 2025; 88 years old) was the head of the Catholic Church and sovereign of the Vatican City State from 2013 until his death. He was the first Jesuit pope, the first Latin American, the first from the Americas, the first from the Southern Hemisphere, and the first born or raised outside of Europe since the 8th century Syrian pope Gregory III. Jorge Bergoglio was ordained a priest in 1969, consecrated Bishop in 1992, and created Cardinal in 2001. He was elected Pope in 2013.

Pope Francis is well loved for his emphasis and exhortations on the loving and caring of our fellowmen, regardless of race, status, gender, faith and beliefs, politics and economics. He focused on easing poverty in a materialistic global society that has sunk to dubious means to serve individualistic ends of wealth, power, pleasure, and honor (St. Augustine’s Four pitfalls of Man). He chose his papal name, “Francis,” in honor of St. Francis of Assisi, an exemplar of poverty and patron of the poor.

Evangelii gaudium (The Joy of the Gospel) is a 2013 apostolic exhortation by Pope Francis that has been described by Italian theologian Massimo Faggioli as “the manifesto of Francis” and a “Magna Carta for church reform.” It touches on many of the themes of Francis’ papacy, including obligations Christians have to the poor and the duty to establish and maintain just economic, political, and legal orders. Refocusing society’s priorities, he asks how “it is not a news item when an elderly homeless person dies of exposure, but it is news when the stock market loses two points?

“Almost without being aware of it, we end up being incapable of feeling compassion at the outcry of the poor, weeping for other people’s pain, and feeling a need to help them, as though all this were someone else’s responsibility and not our own.

“The culture of prosperity deadens us; we are thrilled if the market offers us something new to purchase. In the meantime, all those lives stunted for lack of opportunity seem a mere spectacle; they fail to move us.

“I encourage financial experts and political leaders to ponder the words of [Saint John Chrysostom], one of the sages of antiquity: ‘Not to share one’s wealth with the poor is to steal from them and to take away their livelihood. It is not our own goods which we hold, but theirs.’”

Pope Francis lived what he preached — humility and poverty. He avoided pomp and ceremony in his person and position. He lived simply in the Domus Sanctae Marthae, a guest house within the Vatican, doing his chores and paying his bills himself. (He was the first pope since Pope Pius X to live outside the papal apartments.)

Pope Francis was known for traveling in economy or business class rather than first class. His preference for simpler travel arrangements reflected his emphasis on humility and connection with the people. He visited many countries and continents during his pontificate: South Korea, Sri Lanka, the Philippines, Japan, Bangladesh, Mongolia, Myanmar, Thailand, Indonesia, Papua New Guinea, East Timor, Singapore, Belgium, India, Brazil, Bolivia, Ecuador, Paraguay, the United States, Cuba, Mexico, Colombia, Chile, Peru, Panama, Canada, Kenya, Uganda, the Central African Republic, Egypt, Morocco, Mozambique, Madagascar, Mauritius, and the Democratic Republic of Congo. He has also visited countries in the Holy Land, Africa, Oceania, and the Americas, making him the first pope to visit these regions.

And when he died, Pope Francis chose to be buried in a simple wooden coffin unlike his predecessors, who were buried in three nested coffins — one made of cypress, one made of lead, and one made of elm. “The tomb must be in the earth; simple, without particular decoration and with the only inscription: Franciscus,” the pontiff said in his will, released by the Vatican. He also said the costs of his burial would be covered “by a sum provided by a benefactor.” Francis is the first pontiff in more than a century to be buried outside the Vatican, a couple of miles away in the Basilica di Santa Maria Maggiore.

Over 200,000 people from all walks of life poured into St. Peter’s Square and the adjacent areas on Saturday morning to bid their final farewell at his Requiem Mass. The solemn and moving celebration was presided over by Cardinal Giovanni Battista Re, joined by some 250 Cardinals, Patriarchs, Archbishops, Bishops, priests, and consecrated religious (Vatican News, April 26).

The Gospel was from John 21, 15-19: Jesus asks Simon Peter three times if he loves him, and Peter affirms his love each time. Jesus then instructs Peter to “Feed my lambs” and “Take care of my sheep,” emphasizing his future leadership role. Finally, Jesus predicts Peter’s death, revealing it will be a death of glory.

Referencing the Gospel passage where Christ charges Peter (the first Pope) with shepherding His flock, Cardinal Re remarked that “Despite his frailty and suffering towards the end, Pope Francis chose to follow this path of self-giving until the last day of his earthly life,” in which he “followed in the footsteps of his Lord, the Good Shepherd.”

At the Requiem Mass, an open book of the Gospels was laid on Pope Francis’ wooden coffin. Meaningfully, the brisk wind kept turning the pages of the book that guided this servant-leader of the community of Man.

 

Amelia H. C. Ylagan is a doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

Hongqi charges forward

The Hongqi E-HS7 is priced from P2.58 million. — PHOTO BY JOYCE REYES-AGUILA

New BEVs previewed; PHEVs set to arrive

By Joyce Reyes-Aguila

ESTABLISHED IN 1958, Hongqi is known to be the oldest Chinese passenger car brand, once reserved only for high-ranking government officials. Today, the marque takes on the luxury automotive market.

Local Hongqi distributor EVOxTerra, Inc. launched two battery electric vehicles (BEVs) in the Philippines: the EH7 sedan and the E-HS7 crossover sport utility vehicle (SUV). In an exclusive interview with “Velocity,” EVOxTerra President Rashid Delgado said the move aims to “really accelerate the transition from ICE (internal combustion engine) to new energy vehicles.”

He narrated, “When we first launched in October 2023, we had a more limited lineup, especially on new energy vehicles. We’ve been preparing for the launch of the next generation of BEVs, starting with these two new models. Later this year, we will follow with a lineup of PHEVs (plug-in hybrid electric vehicles), as well as, potentially, new BEVs.”

In a preview for members of the media and content creators, EVOxTerra presented the two new Hongqi offerings scheduled to be officially launched on May 27. The EH7 sedan is available as the 2WD Executive model that has a range of 501km and a zero-to-100kph time of 7.8 seconds, and the 4WD Flagship model that accelerates from standstill to 100kph in 4.2 seconds, and boasts a range of 640km.

Executive and Flagship models are also available for the E-HS7 SUV. The Executive’s maximum power is 253kW, with a range of 475km. The Flagship has 540km of range and peak power of 202 + 253 kW from its two motors. Twenty minutes of charging at maximum capacity can up the battery level from 10% to 80%, with a 600-km range.

According to EVOxTerra Product Planning Manager Kristoff Arcega, the new BEVs come in new designs, Level 2 autonomous driving, and five-star safety ratings secured in both China and Europe. A company release described the design updates to include “sleek external lines and improved internal architecture.” Driving information is provided via a 63-inch augmented reality head-up display (AR HUD) in both vehicles.

Mr. Delgado said the latest models represent Hongqi’s “unwavering commitment to building (its) presence and offerings in the Philippine market (as well as providing) more sustainable future investments and new technology innovation with EVs and plug-in hybrids.” The executive added that the brand’s entry to the market was its first foray outside China — and happened earlier than its introduction in Europe last year. “We were kind of ahead of the game in terms of Hongqi’s global expansion,” he explained. “But since then, (Honqi) has (spent) a lot of marketing dollars to expand outside of China, to build the brand. So, we’re also trying to follow them in reinforcing and strengthening the brand.”

The “striking design” of Hongqi vehicles attracts customers, he maintained. “There is no question that it’s a Hongqi when you see it on the road. It’s really eye-catching, and really draws attention. And then complementary (to that) is the technology and innovation behind it, as well as the heritage.”

The brand presently has four locations in Metro Manila, including its flagship dealership in Bonifacio Global City and near Manila Bay at the Four E-Com Center North Tower Seaside Boulevard. Mr. Delgado reported that Hongqi is also part of a multi-brand showroom in Alabang until they find a more permanent showroom in the area “hopefully by this year.” A partnership with BJ Mercantile, distributor of Scania trucks, is expected to result in a fourth location, this time in Quezon City. “We are also talking to various groups in the north, as well as the Visayas and Mindanao for expansion.(With) the four dealers in Metro Manila and these areas, I think we will — more or less — have all bases covered. We will also look at other strategic locations in the country.”

Aside from distributing EVs, EVOxTerra, Inc. is simultaneously building an ecosystem that offers brand-agnostic charging infrastructure, said its president. The company’s EVOxCharge platform can also run on different chargers. “We’re setting up our own charging network (and are) working with partners who own facilities and also want to put up chargers in their commercial establishments, office buildings, condominiums, as well as for home installation for customers of our brand,” said Mr. Delgado. EV owners of any brand can visit the EVOxTerra EV Lifestyle and Service Center in Western Bicutan, Taguig to access its 10-slot EV charging station. A showroom of EVOxTerra lineup from brands like Bestune, Weltmeister, and BAW is also the vicinity.

Filinvest Land eyes more home projects outside Metro Manila

SANREMO OASIS part of City di Mare along South Road Properties in Cebu City. — BW FILE PHOTO

FILINVEST LAND, INC. (FLI) is building more homes outside Metro Manila, where it expects increased demand amid declining interest rates.

“We will continue to push existing residential offerings, which are mostly outside of Metro Manila,” Filinvest Land President and Chief Executive Officer Tristaneil D. Las Marias said at the company’s annual stockholders’ meeting last week.

“With the recent reduction in interest rates and expected further reductions in interest rates, we expect demand to increase this year,” he added.

FLI revenue from residential real estate rose 6% to P15.39 billion last year as more projects were completed.

The property developer launched 19 residential projects worth P27 billion last year. Reservation sales were steady at P19.4 billion, supported by the 75% growth in the Visayas region.

On April 10, the local central bank slashed the policy rate by 25 basis points to 5.5% and hinted of further rate cuts, which would likely be in “baby steps” or 25-basis point increments.

Mr. Las Marias said the company expects the opening of a Filinvest mall in Clark, Pampanga province by the fourth quarter.

He added that their office business is expected to be stable this year, while the industrial segment would post additional revenue from new locator sign-ups in the next few months.

Last year, Filinvest Land’s attributable net income rose 11% to P4.17 billion, boosted by higher consolidated revenue.

Its portfolio spans homes, townships, mixed-use developments, mid-rise and high-rise condominiums, office buildings, shopping centers and leisure developments.

Filinvest Land shares gained 2.63% or 2 centavos to 78 centavos each on April 25. — Revin Mikhael D. Ochave

Gov’t debt yields mixed as market stays volatile

YIELDS on government securities (GS) traded on the secondary market ended mixed last week amid the continued volatility caused by global trade uncertainties and following the jumbo issuance of 10-year papers.

GS yields, which move opposite to prices, inched up by an average of 0.38 basis point (bp) week on week, according to the PHP Bloomberg Valuation Service Reference Rates as of April 25 published on the Philippine Dealing System’s website.

At the short end of the curve, the 91- and 364-day Treasury bills (T-bills) rose by 4.25 bps and 5.21 bps week on week to fetch 5.4558% and 5.7362%, respectively. Meanwhile, the 182-day paper went down by 2.19 bps to yield 5.6089%.

At the belly, rates fell across all tenors. Yields on the two-, three-, four-, five-, and seven-year Treasury bonds (T-bonds) declined by 1.06 bps (to 5.7546%), 1.24 bps (5.796%), 1.67 bps (5.8517%), 1.78 bps (5.9247%), and 1.43 bps (6.0928%), respectively.

Lastly, at the long end, rates of the 10- and 20-year T-bonds climbed by 3.91 bps to 6.3404% and by 0.28 bp to 6.3217%, respectively. Meanwhile, the 25-year paper inched down by 0.06 bp to fetch 6.3178% last week.

GS volume traded amounted to P35.62 billion on Friday, higher than the P28.33 billion traded a week prior.

The market was defensive last week due to uncertainties surrounding trade relations between the United States and China, a bond trader said in a text message.

“Local bonds remain sensitive to US Treasury moves but yields were generally range-bound this week… Yields remain well supported given the recent relief rally in US rates, but liquidity and activity was particularly thin as most investors stayed on the sidelines,” Dino Angelo C. Aquino, head of fixed income at Security Bank Corp., said in an e-mail.

US President Donald J. Trump asserted in an interview published on Friday that tariff negotiations were under way with China, but Beijing denied any talks were taking place, the latest in a series of conflicting signals over what progress was being made to de-escalate a trade war threatening to sap global growth, Reuters reported.

Mr. Trump told TIME magazine that talks were taking place and that Chinese President Xi Jinping had called him, an assertion he repeated to reporters as he was leaving the White House on Friday morning for Rome to attend the funeral of Pope Francis.

“China and the US are NOT having any consultation or negotiation on #tariffs,” China shot back in a foreign ministry statement posted by the Chinese Embassy in the US. “The US should stop creating confusion.”

On Saturday, Chinese Foreign Minister Wang Yi said Beijing abides by international rules on US-imposed tariffs and would seek solidarity with other countries.

The back-and-forth adds to the substantial uncertainty surrounding Mr. Trump’s erratic tariff policy, not just around China, but also as it pertains to the dozens of countries scrambling to strike their own deals to ease the burden of the hefty import taxes he has unleashed since returning to the White House in January.

Mr. Aquino and the trader both said that GS yields mostly moved sideways last week as the market awaited the result of the Bureau of the Treasury’s (BTr) 10-year bond offer.

“The final amount is around P300 billion, which shows very good demand considering the uncertainties with regards to Trump’s ongoing trade war,” Mr. Aquino added.

The government raised a total of P300 billion via its offering of new 10-year fixed-rate Treasury notes (FXTN), the BTr announced on Friday.

This was 10 times the initial P30-billion program as bids reached P307.05 billion, allowing the Treasury to end the public offer period on April 23, a day earlier than planned.

The BTr already raised an initial P135 billion from the papers at the rate-setting auction on April 15 as tenders reached P197.3 billion.

The notes fetched a coupon rate of 6.375%. Accepted bid yields ranged from 6% to 6.4%, resulting in an average rate of 6.286%.

For this week, GS yields may continue to move sideways, with “choppy” trading likely as players look to the US market for leads, the bond trader said.

“Another thing to watch is if things will improve as the US is trying to soften its [tariff] stance… The wobbly state is resulting in higher inflation risk and is sending US Treasury yields higher,” the trader said.

The market will also monitor the BTr’s bond auction this week “to gauge if there is a supply risk even if they got good demand for the recent offering,” the trader said.

“The market may continue to trade in a range with a bias to the downside in terms of rates given the healthy demand for the new 10-year FXTN,” Mr. Aquino added. — Matthew Miguel L. Castillo with Reuters

Nestlé slows US price hikes to win back consumers

REUTERS

LONDON — Household goods and packaged food makers are easing US price increases to avoid losing American shoppers to retailers’ less expensive private-label brands as a global trade war tests the limits of their pricing power at grocery stores.

US President Donald Trump has imposed broad tariffs on several countries around the world in recent months, sparking worries that the US economy will be pushed into recession, with commodities and basic utilities becoming more expensive.

Mr. Trump met with major retailers, including Walmart and Target, to discuss the tariffs’ impact on their imports.

“Some political decisions, economic decisions taken have rather undermined already soft consumer confidence,” Nestlé CEO Laurent Freixe told journalists on Thursday during an earnings call. Nestlé, the world’s biggest packaged food company and maker of Nescafé and Kit-Kat, cut prices in the US, its biggest market, by 1%.

“When it comes to pricing, we have to take into account the customers, the consumers, competitors’ moves,” Mr. Freixe said. “We are trying to take as much price as we can to cover our costs while being mindful of the consumer response.”

Dove soap maker Unilever, which also reported earnings on Thursday, noted “declining consumer sentiment” in North America, where it raised prices by only 2.1%.

Nestlé, Unilever and other makers of household products and packaged food need to show caution with price hikes to avoid alienating American shoppers who are worried about having less money to spend on groceries, industry consultants and investors said. In grocery stores, these companies compete head-to-head with retailers’ private label products, which are generally lower priced.

“Consumer confidence is down. We can see consumption patterns are changing, and it will remain competitive,” Kris Licht, CEO of Reckitt, said on an earnings call on Wednesday. He added that, in that context, the maker of Durex condoms in the first quarter raised prices by just 0.9% in North America compared to 3% in Europe and 3.9% in emerging markets.

During the Covid-19 pandemic, consumer goods firms lost market share to store brands made by retailers like Walmart and Target.

Rob Holston, EY’s global and America’s consumer products sector leader, said consumer companies selling major brands of everyday products had raised prices as much as they can in recent years.

“There’s a large percentage of people that will just move into private label” options, Mr. Holston said, adding that his consumer goods clients have said they’re on “war-footing” with private label brands now.

Data pulled for Reuters by research firm NielsenIQ showed that as recently as in the first quarter, makers of major household goods brands on average kept price increases roughly flat at 2% when compared with faster price hikes of about 4% from private label brands for the same basket of goods that included categories from coffee and soap to baby food and tampons. Private label goods are still cheaper on average by at least roughly $1, according to the NielsenIQ data.

The US Consumer Price Index increased 2.4% in March on a year-on-year basis, above the 2% rate at which big brands were recently raising prices, according to the NielsenIQ data.

McKinsey partner Patricio Ibáñez said shoppers are bracing for costs to rise because of tariffs, and a survey led by the consulting firm showed 60% of people plan to shift their consumption habits by buying things that are cheaper or by switching to wholesale clubs or going to online retailers.

“We wouldn’t recommend price increases,” Mr. Ibáñez said. “Private brands are growing four times faster than national (big) brands in the US.”

This trend is worrying for investors in major consumer goods companies like Nestlé, even though most of the firms insist their operations aren’t significantly exposed to tariffs.

“It’s very difficult to find hiding places for Investors,” said Tom Lemaigre, a portfolio manager on the European equities team at investor Janus Henderson. Mr. Lemaigre said shoppers are thinking carefully about how they spend their money and that consumer goods companies need to figure out how to combat competition from private label brands.

On Walmart.com, shoppers can buy a 100-fluid-ounce bottle of Unilever’s Persil liquid laundry detergent for $12.97. For $11.64, however, shoppers can buy a 154-fluid-ounce bottle of Walmart’s Great Value detergent which promises 154 loads of laundry.

Walmart and Target did not immediately respond to requests for comment.

“The number of retailers that have developed the capabilities of the multinational consumer companies has increased quite significantly,” Aftab Hussain, a managing director and senior partner in BCG’s consumer and retail team, said. “You’re seeing innovations come through from retailers on private brand that’s actually ahead of the (bigger) brands.”

Nestlé has lost US market share in stores for at least the past 18 quarters, according to Nielsen data analyzed by Barclays. The company said on Thursday when it reported quarterly results that it had “market share challenges” in the frozen food and creamer categories. Unilever’s US business, which sells Ben & Jerry’s ice cream, has lost market share in all but two of at least the past 18 quarters, by comparison, the data show. — Reuters

Style (04/28/25)

FONDAZIONE SOZZANI

Fashion mentorship program

THE Department of Trade and Industry (DTI) through the Center for International Trade Expositions and Missions (CITEM), and the Philippine Fashion Coalition (PFC), together with Tetta Ortiz-Matera of LIT Fashion Consultancy, join forces to launch the FASHIONPhilippines Milan Mentorship Program 2025. The initiative features a three-day exhibition in Milan from Sept. 23 to 25, presenting works by 10 Filipino designers and fashion brands who qualify for the program. The exhibit will be held at the Fondazione Sozzani which has hosted exhibits by some of the world’s most famed artists and designers like Yayoi Kusama, Maison Martin Margiela, Zandra Rhodes, and legendary photographers such as Annie Leibovitz, Bruce Weber, and Helmut Newton. The exhibit will coincide with Milan Fashion Week S/S 2026. Prior to the exhibition, the selected Filipino designers and brands will undergo a series of mentoring sessions with a seven-member panel of industry leaders from various segments of the industry. Led by Fondazione Sozzani Creative Director and Milan Fashion Week International New Talent and Brand Ambassador Sara Sozzani-Maino, the mentors are Riccardo Grassi (RG Showroom Founder), Niccolo Pasqualetti (founder of his own brand), Riccardo Terzo (international fashion stylist and consultant), Ryle Tuvierra (digital content creator), Giulia Demitri (buyer for Gaudenzi Boutique), and Helena Boissonnas (from Le Bon Marchè). Designers can submit their applications from April 21 to June 14, through the official FASHIONPhilippines Milan Mentorship Program website (https://fameplus.com/trade_fairs/fashionphilippines-milan). For more details on how to apply and access the application form, visit https://fameplus.com/trade_fairs/fashionphilippines-milan. For updates and inquiries, follow CITEM on Facebook and Instagram and the Philippine Fashion Coalition’s Facebook and Instagram pages.


Robinsons summer sale

ROBINSONS Department Store offers summer essentials in its Piece of Summer promo. Running until May 15, customers can enjoy up to 50% off on select items at all Robinsons Department Store branches nationwide and online stores. Plus, they are charged no interest for a minimum single-receipt purchase of P3,000 using their credit card. On top of discounts, customers get free gift certificates for a single-receipt purchase worth P3,500 from 10 a.m. to noon only on May 2 to 4. They also get a chance to win a free vacation for two to Boracay or a Honda Beat 2025 Motorcycle when they shop using Salmon Financial Services. Some of the deals are on swimsuits like the Sassa Scarlet Blaze One-Piece and Angelfish Earthly Aura One-Piece; and accompanying pieces like Stella Accessories’ flowy Skirt Wrap and the Liberte Tote Brina in Brown; Belo Soothing Aqua Hydrating Gel Cream and the Sola Cushion Ultra Matte with SPF 50+, and Colurette’s BFF Eyeshadow Palette; suitcases from Sky Travel and Portgear; and footwear from Privileged and Gallardo. For more updates on the offers, follow Robinsons Department Store on Facebook, Instagram, and TikTok.


Scoop makeup treasures with Careline

CARELINE’S latest in-store marketing gimmick is the Careline Fish Tank — a limited-time, interactive experience. Inspired by its viral Careline x SpongeBob SquarePants collaboration, the Careline Fish Tank offers customers the opportunity to scoop up as many makeup items as they can from a fish tank filled with Careline cosmetics — all for P599. Customers are given two trial scoops to test their strategy or try their luck before making one final scoop that determines what they get to take home. However, if they are already satisfied with their haul during the trial round, they can choose to keep that scoop instead. The Careline Fish Tank activation is being held for a limited time at the following locations: LCC Department Store, LCC Mall Legazpi Main (until May 1); W Department Store, Waltermart North EDSA (up to April 30), LCC Department Store, LCC Mall Tabaco (May 8 to 31), and SM Beauty Department Store in SM Sta. Rosa, Laguna (May 8 to 28). For more updates, follow Careline on social media @carelineph.

A shot at a healthier nation

PHILIPPINE STAR/EDD GUMBAN

Each year, World Immunization Week reminds us of a simple but profound truth: vaccines save lives. This April, however, the call is even louder — not just to remember, but to act.

Under the theme “Immunization for All is Humanly Possible,” global health experts are urging governments, healthcare workers, and communities to intensify efforts in reaching every person with life-saving vaccines. Over the past 50 years, immunization has prevented at least 154 million deaths — the equivalent of saving six lives every minute, every hour, every day, for five decades. Behind these numbers are real people: parents, children, workers, leaders — lives that might otherwise have been lost.

Despite remarkable progress, challenges remain. Inequitable access, widespread misinformation, and vaccine hesitancy continue to undermine public health gains. The Pharmaceutical and Healthcare Association of the Philippines (PHAP), representing the biopharmaceutical sector in the country, reaffirms its commitment to advancing public health through effective and comprehensive vaccination programs.

Vaccination remains one of the most impactful public health interventions, significantly reducing the incidence of vaccine-preventable diseases (VPDs) and safeguarding communities. High immunization coverage — particularly within schools and local communities — is crucial to preventing outbreaks and ensuring that no one is left vulnerable. To sustain and build on these successes, continuous investment and strategic expansion of vaccination programs must remain a national priority.

In today’s rapidly evolving healthcare landscape, modernization is key to enhancing the reach and efficiency of vaccination initiatives. By integrating digital technologies, we can optimize vaccine distribution, streamline scheduling, and enable real-time tracking of coverage and effectiveness. Digital platforms not only promote transparency and accountability but also help identify underserved communities, allowing us to address coverage gaps promptly and effectively. Prioritizing vulnerable populations — including children, the elderly, pregnant women, individuals with comorbidities, and frontline workers — ensures that those most at risk are protected.

The COVID-19 pandemic further underscored the critical importance of a resilient and responsive healthcare infrastructure. Amid global supply challenges, PHAP and its members played a vital role in securing the continued availability of COVID-19 vaccines and other essential vaccines in the Philippines. The rapid development, production, and distribution of COVID-19 vaccines demonstrated the biopharmaceutical industry’s ability to innovate swiftly under unprecedented pressure — a powerful testament to what collaboration and determination can achieve.

This experience highlighted the indispensable value of strong public-private partnerships in accelerating vaccine access. Moving forward, coordinated efforts among government agencies, healthcare providers, patient organizations, and the pharmaceutical industry will be crucial in responding effectively to future health emergencies.

As new health threats emerge, it is equally important to broaden vaccine coverage beyond current VPDs. The inclusion of vaccines against dengue, shingles, invasive meningococcal disease, respiratory syncytial virus (RSV), and Human Papillomavirus (HPV) represents a forward-looking approach to national health security. Expanding access to these vaccines will strengthen protection for vulnerable groups and improve long-term health outcomes for all Filipinos.

Equally critical is rebuilding public trust in vaccines through robust education campaigns. Misinformation and distrust continue to threaten immunization efforts. By providing accurate, science-based information and actively engaging with parents and communities, we can foster greater confidence in the safety and importance of vaccines.

In support of this effort, PHAP is launching its campaign, “IBA ang BAKUNADO,” which aims to raise awareness about the life-saving value of timely immunization. The campaign highlights how vaccines protect against over 30 diseases, reduce healthcare burdens, and ultimately save lives.

PHAP remains steadfast in its support for the Philippine government’s immunization agenda. Rebuilding vaccine confidence, modernizing immunization infrastructure, and expanding coverage to address emerging health threats are critical steps toward protecting future generations. PHAP member companies — including GSK, Pfizer, Sanofi, Takeda, Abbott, MSD, and Zuellig Pharma — are actively working toward these shared goals.

Through “IBA ang BAKUNADO,” PHAP advances its mission to promote science-based vaccines, strengthen healthcare systems, and ensure vaccine access at every stage of life — contributing to a healthier, more resilient Philippines.

By taking action today, we lay the foundation for a nation better prepared to face the public health challenges of tomorrow.

 

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines which represents the biopharmaceutical medicines and vaccines industry in the country. Its members are in the forefront of research and development efforts for COVID-19 and other diseases that affect Filipinos.

Head-up Display

PHOTO BY KAP MACEDA AGUILA

The Jetour G900 at Auto Shanghai 2025. The large off-roader boasts an ‘embedded ladder-frame composite chassis and triple differential locks’ to tackle the most difficult of terrain. The story on this and other Jetour releases next week.