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Iran resumes hunt for missing plane with 66 onboard

TEHRAN — Iranian rescue teams resumed their search on Monday for a passenger plane that disappeared high in the Zagros mountains the previous day with 66 people onboard, local media reported.

State television said the weather had improved after blizzard conditions hampered search efforts Sunday, and that helicopters were now able to take part in the hunt for Aseman Airlines flight EP3704.

The authorities had called off the rescue effort overnight as heavy snow and rain made it impossible to work.

The ATR-72 twin-engine plane, in service for 25 years, left the capital’s Mehrabad airport at around 8 a.m. (0430 GMT) on Sunday and was heading towards the city of Yasuj, some 500 kilometers (300 miles) to the south.

It is thought to have crashed on the Dena mountain of Iran’s southwestern Zagros range, but one official said there could be as many as 100 peaks to search in the vast and remote area.

“The visibility in the defined search area is not very good and there is turbulence, so these safety concerns must be taken into account,” Morteza Dehghan of the Civil Aviation Organisation told state television.

“Despite all these conditions, both land and air teams are active. As soon as permission is given, drones will be used as well.”

Around 100 mountaineer rescue workers were deployed on Monday, state television said.

France’s air safety agency BEA said it would take part in the investigation led by Britain’s Air Accidents Investigation Branch.

“Three investigators and our technical advisers will go to the site,” a BEA spokesman told AFP. — AFP

PSEi returns to 8,700 level as rate hike fears ease

SHARES jumped on Monday as positive corporate earnings alongside dwindling fears for a faster rate hike by the US Federal Reserve fuelled optimism.

The 30-member Philippine Stock Exchange (PSEi) index went up 1.13% or 97.78 points to 8,710.22, while the broader all-shares index climbed 0.93% or 47.60 points to 5,123.20.

“It was a recovery in the market since we were absent last Friday. And also fears of…the movement of the rate increase by the Fed was allayed due to the fact that retail sales figure was not that strong enough. Thus this provided the market to be more optimistic of the continued growth,” Diversified Securities, Inc. equities trader Aniceto K. Pangan said in a phone interview.

Mr. Pangan added that corporate earnings have been positive so far, noting the reports released by property giants SM Prime Holdings, Inc. (SM Prime) and Ayala Land, Inc. (ALI).

SM Prime disclosed on Monday that recurring profit grew 16% to P27.6 billion, while ALI last week said that net income attributable to the parent climbed 21% to P25.3 billion in 2017.

“This means that both the property and consumer sector are positive. There’s relatively sustained growth in the market,” Mr. Pangan said.

All sectors ended on positive territory, led by the financials sub-index which gained 2.55% or 56.57 points to 2,266.86. Mining and oil followed with an increase of 1.72% or 201.85 points to 11,908.20. Property inched up 1.37% or 53.44 points to 3,938.61; services added 1.34% or 22.97 points to 1,728.44; industrials picked up 0.65% or 74.98 points to 11,473.60; while holding firms rose 0.38% or 33.56 points to 8,830.61.

Foreign investors turned buyers, snapping a 15-day selling streak with net inflows of P44.93 million on Monday, against net sales of P373.42 million last Thursday.

A total of 7.35 billion issues switched hands for a value turnover of P9.7 billion, lower than the P10.7-billion turnover in the previous session.

Advancers outpaced decliners, 141 to 65, while 44 names were unchanged.

The market moved in pace with Asian markets, which ended mostly on a positive note.

Analysts expect the upswing recorded on Monday to continue for the rest of the week, as long as the Fed would keep its rate hikes steady in the coming months.

“We expect some upside this week as long as it breaks and holds the 50-day average. This range trade will not last for long. Key support levels are expected to be tested within the month,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message.

Other leads for the week include the release of minutes from the Federal Open Market Committee’s Jan. 30-31 meeting, which could provide more hints on the US central bank’s future moves, as well as the release of local balance of payments data scheduled yesterday. — Arra B. Francia

Peso plunges to worst finish in nearly 12 years

THE PESO plunged against the dollar on Monday to its worst showing in almost 12 years following the move of Bangko Sentral ng Pilipinas (BSP) to cut banks’ reserve requirement ratio by a percentage point.

The local currency closed today’s session at P52.34 against the greenback, 34 centavos weaker than its P52-per-dollar finish last Thursday.

This is the peso’s weakest finish in nearly 12 years or since it closed at P52.745 on July 19, 2006.

The peso traded weaker the whole day, opening the session sharply lower at P52.30 per dollar. Its intraday low stood at P52.45, while its best showing was at P52.24 against the US currency.

Dollars traded on Monday rose to $1.025 billion from the $578.5 million logged the previous session.

A trader interviewed on Monday said the market was “caught off guard” by the BSP’s move to cut the reserve requirement, which led to a weaker peso after the long weekend.

On Thursday, the central bank announced the “operational” cut in universal and commercial banks reserve requirement ratio — the regulator’s first adjustment to the standard since May 2014.

“In deciding to reduce the reserve requirement ratios, the Monetary Board reaffirms the BSP’s commitment to gradually lessen its reliance on reserve requirements for managing liquidity in the financial system,” the BSP said in a statement on Thursday.

The cut will take effect on March 2, according to the BSP circular.

Reserve requirements for thrift banks and rural banks, meanwhile, remain at 8% and 5%, respectively.

In a statement, Bankers Association of the Philippines welcomed the requirement cut, saying: “The reserve adjustment means that borrowers will have access to more sources of funds and more efficient cost of borrowing that is expected to propel more economic activity in the country.”

“Reducing requirement basically lets more peso into the system. So if there’s more peso circulating, it will be less valuable. Hence, we saw the peso weaken [yesterday],” the trader explained.

Meanwhile, the trader added that the central bank intervened late in the day to contain volatility.

As the country’s monetary authority, the BSP sometimes conducts “tactical interventions” to temper any sharp swings that may cause the peso to appreciate or depreciate.

UnionBank of the Philippines chief economist Ruben Carlo O. Asuncion noted that the market is waiting for the release of the [US Federal Reserve] minutes in search for clues on the pace of future interest rate hikes.

For Tuesday, Feb. 20, the trader and Mr. Asuncion sees the peso moving between P52.20 and P52.40 against the dollar.

Meanwhile, most Asian currencies consolidated on Monday as low liquidity and an absence of currency market catalysts limited gains, but strong regional equity markets propped them up.

The South Korean won, which resumed trading after a two-day Lunar New Year holiday, rose nearly 1%, leading the regional currencies’ gains on the day.

“In terms of the Asia FX (foreign exchange) movements, the most of what we are seeing is the reflection of what happened on the US close on Friday,” said Khoon Goh, head of Asia research at ANZ Banking Group (Singapore).

“However with most markets closed, we can’t read much into the price action today.”

The S&P 500 index rose on Friday to mark its biggest weekly increase in five years.

Currency markets in China and Taiwan were closed for Lunar New Year and India is shut for a banking holiday. — Karl Angelo N. Vidal with Reuters

Florida shooting survivors to march on Washington in call for gun reform

WASHINGTON — Students who survived a mass shooting at their Florida school on Sunday announced plans to march on Washington in a bid to “shame” politicians into reforming laws that make firearms readily available.

The “March for Our Lives” will take place on March 24, with sister rallies planned across the country, a group of students told ABC News’ This Week.

They pledged to make Wednesday’s slaughter in Parkland, Florida a turning point in America’s deadlocked debate on gun control.

Nikolas Cruz, 19, a troubled former student at Marjory Stoneman Douglas High School, confessed to killing 17 people with a legally purchased AR-15 semi-automatic rifle, the latest such atrocity in a country with more than 30,000 gun-related deaths annually.

Among the students announcing the march was Emma Gonzalez, who captured worldwide attention with a powerful speech in which she assailed President Donald J. Trump over the multimillion-dollar support his campaign received from the gun lobby.

She vowed Stoneman Douglas school would be “the last mass shooting.”

On Sunday, Ms. Gonzalez, 18, urged politicians to join a conversation about gun control — citing Mr. Trump as well as his fellow Republicans Florida Senator Marco Rubio and Governor Rick Scott.

“We want to give them the opportunity to be on the right side of this,” she said, as she and her four classmates called on students nationwide to help push the message.

Ms. Gonzalez and other Stoneman Douglas students were scheduled to be part of a nationally televised, prime-time “town hall” event on CNN on Wednesday. Mr. Rubio, who has attracted criticism for accepting millions in political help from pro-gun groups, tweeted that he would participate.

That same day, Mr. Trump will host a “listening session” with high school students and teachers, the White House said in a statement, though it did not specify who would attend.

The president met Sunday with top Republican lawmaker Paul Ryan, discussing “the recent tragedy in Parkland, Florida,” among other topics.

Singling out links between politicians and the powerful National Rifle Association, Stoneman Douglas student Cameron Kasky said any politician “who is taking money from the NRA is responsible for events like this.”

“This isn’t about the GOP,” he said, referring to the Republican Party. “This isn’t about the Democrats.”

The NRA, a traditional ally of the Republicans who currently control Congress and the White House, defends a literal view of the US Constitution’s 2nd Amendment which promises a right “to keep and bear arms.”

Even after last October’s killing of 58 people by a gunman in Las Vegas who amassed 47 firearms to commit the worst mass shooting in recent US history, legislators accomplished nothing in the way of tighter controls.

Accusing the NRA of “fostering and promoting this gun culture,” Mr. Kasky said the students seek “a new normal where there’s a badge of shame on any politician who’s accepting money from the NRA.”

“People keep asking us, what about the Stoneman Douglas shooting is going to be different, because this has happened before and change hasn’t come?” said Mr. Kasky.

“This is it,” he continued. “We are going to be marching together as students begging for our lives.”

The students did not indicate how many people they expected to join their rallies.

But their aims won support from Florida Democratic Congressman Ted Deutch, who said they can make a difference.

“After what they saw, the worst things imaginable, they’re not going to just sit back and take it,” he told This Week.

“All I’ve heard all week is how frustrated people are with rhetoric. They want action.”

Florida Republican Congressman Carlos Curbelo, speaking on the same program, said he is working towards bipartisan solutions that could prevent similar tragedies.

“There are a lot of Republicans who are prepared to support reasonable, common-sense gun safety laws,” he said.

Democratic Congressman Adam Schiff said that although Republicans have faced a bigger hurdle in making gun control a priority, “it’s been a challenge in the Democratic Party as well.”

Speaking on CNN’s “State of the Union,” Mr. Schiff asked, “How much more of this are we gonna to take? How many more shootings?”

Congress has to get “off its backside” to “stare down the NRA and do the right thing,” he said.

The student survivors’ calls for change “should matter,” said Mark Kelly, a retired astronaut whose wife, former congresswoman Gabrielle Giffords, was shot and wounded by a deranged gunman.

He said on Fox News Sunday that the student activists “are going to vote on this issue probably for the rest of their lives and they’re going to encourage others to do that as well.”

But conservative radio host Rush Limbaugh, speaking on the same show, said neither legislation nor marches are the answer.

“It’s not the fault of the NRA,” he said, calling for concealed weapons to be allowed in schools.

“If we are really serious about protecting the kids, we need a mechanism to be defensive.” — AFP

SSS offers calamity loan assistance to those affected by Mayon eruption

Social Security System (SSS) is offering calamity loan assistance to its members and pensioners who are affected by the eruption of Mayon volcano.

In a statement, state pension fund SSS said its active members and pensioners residing in areas affected by the Mayon volcano eruption can get financial aid under its calamity loan assistance program until May 15, 2018.

SSS president and chief executive officer Emmanuel F. Dooc said the member-applicants who will avail the assistance can avail of a maximum of P16,000 calamity loan and is payable in two years.

“To further help them recover from this unfortunate situation, monthly amortization will only start after three months from the time that they received the loan,” Mr. Dooc added.

The calamity loan assistance program is separate from the regular salary loan. The loanable amount is payable in equal monthly installments with an annual interest rate of 10% and monthly penalty of 1% for late payments.

SSS added that the 1% service charge was waived “as a special consideration.” — Karl Angelo N. Vidal

DOF chief to Mexican tech firms: Make PHL your entry point into ASEAN

Finance Secretary Carlos G. Dominguez, III has called on technology and manufacturing companies based in Mexico to make the Philippines their entry point to the lucrative market of the Association of Southeast Asian Nations (ASEAN).

During his meeting with Mexican Ambassador Gerardo Lozano Arredondo, Mr. Dominguez said Mexican firms can take advantage of the country’s young and talented workforce and reasonable labor costs.

“We’d like to go with Mexican companies, particularly with your high-technology companies… We would like to invite you to come and invest here—probably for the Mexican companies to use Philippines as a base to enter the ASEAN market,” Mr. Dominguez said during a meeting with the Mexican ambassador. — Karl Angelo N. Vidal

UnionBank to deactivate magnetic strip cards by March 31

UnionBank of the Philippines is set to deactivate all magnetic stripe cards by the end of March in line with the industry’s migration to the microchip-based bank cards.

In a statement, UnionBank called on its automated teller machine and debit cardholders to claim their Europay Mastercard Visa (EMV) chip enabled cards, as the bank will deactivate the magnetic stripe cards by March 31, 2018.

The Aboitiz-led lender also called on its customers who hold Unified Multi-purpose ID Cards of Government Service Insurance System and Quick Cards of Social Security System equipped with magnetic stripe to claim their new cards.

“We encourage all our customers to [switch] to EMV before March 31, 2018… Doing so will help them avoid any inconvenience in the future, especially with the eventual phaseout of non-EMV transactions,” Dennis L. Matutina, executive vice president for channel management of UnionBank was quoted as saying in the statement.

The bank’s card upgrade measure is months ahead of the June 30, 2018 deadline set by the Bangko Sentral ng Pilipinas (BSP) for banks and credit card issuers to shift to EMV technology.

The BSP originally set a January 2017 deadline when it ordered EMV upgrades in 2014.

EMV cards, the current global standard for financial transactions, are more equipped to ward off fraud, identity theft and other malicious activities. — Karl Angelo N. Vidal

AgriNurture to conduct stock rights offering

AgriNurture, Inc. will be conducting a P283.76 million stock rights offering (SRO) in a bid to raise capital for the expansion of its agricultural businesses.

In a disclosure to the stock exchange on Monday, Feb. 19, AgriNurture said its board of directors approved last Feb. 17 the company’s plan to conduct the SRO, comprising 283.76 million shares at a value of P1 apiece.

Each existing shareholder of 2.5 shares will be entitled to one stock rights share from the offering.

“The Rights Issue is intended to provide additional working capital to support the growth and strategic initiatives of the Corporation’s core businesses. Management shall finalize the specific allocation of the proceeds for review and approval of the board,” AgriNurture said. — Arra B. Francia

PSE starts trading under one roof at new BGC office

By Dane Angelo M. Enerio

The Philippine Stock Exchange, Inc. (PSE) opened its first trading day at its new headquarters in Bonifacio Global City (BGC) on Monday, Feb. 19.

PSE President Ramon S. Monzon and Chairman Jose T. Pardo, alongside other company executives, officially started the trading day by ringing the two bells from the PSE’s two previous trading floors, symbolizing the unity of the once physically separated exchange.

“Welcome to our new home… We’re finally all here,” said Mr. Pardo.

“The most important milestone in this room is that we now witness here, at the trading floor, for the first time, traders from the old Manila Stock Exchange and the old Makati Stock Exchange now share one trading floor,” Mr. Pardo added.

The new office — estimated to have cost P3.5 billion — is situated at One Bonifacio High Street, a tower located along 28th Street corner 5th Avenue and part of Ayala Land Premiere’s prime real estate block in BGC, Taguig City.

Prior to the move, the PSE operated two trading floors in Metro Manila as a result of the merger of the Manila Stock Exchange and the Makati Stock Exchange back in 1992. The first one was located at the PSE Plaza Ayala Triangle, Ayala Tower One in Makati City, and the other being at the Philippine Stock Exchange Centre, Tektite Towers in Pasig City.

Both bourses traded the same stocks of the same companies at the same prices despite being separated.

Mr. Pardo also revealed plans of creating a PSE museum that will let people see the company’s “rich history” and emphasized how the space the new office offers will give them the ability to “grow and support initiatives” for programs in the country.

The PSE last month was named Southeast Asia’s best stock exchange by investment magazine Alpha Southeast Asia, making this the fourth time they received the award in five years.

Office market supply seen to grow by 40% in next five years

The Philippine office market is seen to grow by 40% in the next five years, pushed up by the need of information technology- business process management (IT-BPM) to expand in the country.

Data released by real estate services firm Leechiu Property Consultants showed that 4.5 million square meters of office spaces are in the pipeline from 2018 to 2023. Of this, 71% or 3.2 million sq.m. are being constructed in Metro Manila, while the 29% or 1.3 million sq.m are in provincial areas.

This will be added to the current supply of 11.5 million sq.m across the country, 86% of which come from Metro Manila and 14% from the provinces.

“BPM players already invested in the Philippines will continue to dominate the Metro Manila office sector…in the meantime, they are also expanding to provincial locations such as Clark in Pampanga, Cavite, Batangas, Laguna, and notably, Cebu City,” LPC Chief Executive Officer David Leechiu said. — Arra B. Francia

 

Growth push driving trade gap — BSP

A WIDENING trade deficit should not be taken as a sign of a weakening Philippine economy but that growth will be fueled further, a central bank official said.

The Bangko Sentral ng Pilipinas (BSP) downplayed concerns about a wider trade deficit incurred by the Philippines in recent months, saying the country’s external position remains stable.

The country’s external trade deficit logged a new all-time-high $4.017 billion in December, taking the full-year gap to $29.786 billion, also the biggest on record.

Imports increased by 10.2% while exports surged by 9.5% to beat the government’s forecasts of nine percent and eight percent respectively, according to the National Economic and Development Authority.

As of December, the BSP expected the current account — which measures fund flows from goods and services trading — to settle at a $100-million deficit in 2017, a reversal from the $28-million surplus logged as of end-September.

“For some, the narrowing of the current account is taken as a sign that the economy is overheating. But in this case, my take is that if the narrowing of the current account comes from better investments — this is actually what is needed to prevent the economy from overheating,” BSP Managing Director Francisco G. Dakila, Jr. said in a press chat late last week. “Otherwise, if there’s no improvement in investments, you will not be able to accelerate your economic growth.”

Mr. Dakila said the trade-in-goods deficit has started to widen in 2015 as import growth outpaced an increase in exports, reflecting the bigger need for raw materials and intermediate goods to respond to stronger domestic demand.

The administration plans to spend as much as P8.13 trillion on big-ticket infrastructure projects until 2022, when President Rodrigo R. Duterte ends his six-year term, as it hopes to propel gross domestic product (GDP) growth to 7-8% annually from 6.7% last year, 6.9% in 2016 and an average of 6.2% in 2010-2015.

“You can see that investment in proportion to GDP has accelerated,” Mr. Dakila noted.

“The widening of the trade deficit can be viewed as necessary to support further expansion in terms of rising investments and increased infrastructure spending.”

Its impact has been “tempered” by cash remittances of overseas Filipino workers and sales of the business process outsourcing and tourism, Mr. Dakila said. Hence, the Philippines has more than enough buffers to external financial shocks, with $81.206-billion reserves able to cover 8.2 months of imports.

For 2018, the central bank expects the current account to settle at a $700-million deficit, equivalent to 0.2% of GDP. Mr. Dakila said worries should arise only if the ratio breaches five percent. — Melissa Luz T. Lopez

Local solar panel maker downplays US tariff impact

SOLAR PHILIPPINES Power Project Holdings, Inc. remains confident about its business prospects despite Washington’s decision last month to impose a tariff on imported solar panels.

US President Donald Trump on Jan. 22 imposed a tariff of up to 30% on imported solar cells and panels for the next four years, lower than the US International Trade Commission’s recommended 35% duty after finding out that these items were harming American manufacturers.

Solar Philippines Leandro L. Leviste said in a recent interview that the company has “a very diversified mix of customers in the US, Europe and now increasingly India where the policy is to encourage importations of Southeast Asian solar panels.”

“So the market is very dynamic and we still think that there’s a shortage of supply and great demand for Southeast Asian solar panels, which are very well-positioned to compete against the Chinese,” Mr. Leviste said, noting that other foreign markets have preferential import policies for Southeast Asian solar panels.

“Very specifically, the global market for OEM (original equipment manufacturer) right now is around 30,000 megawatts (MW)… and maybe 20,000 of that is in Southeast Asia,” he added.

“So out of the 20,000 MW of Southeast Asia OEM capacity, the Philippines represented by us is less than five percent. So we think there’s a lot of room to grow for us to increase our share in the OEM market because, with the labor cost — labor productivity in the Philippines — we are actually more competitive than Vietnam, Malaysia and Thailand.”

In August 2017, Mr. Leviste had said the company’s solar panel manufacturing plant in Sto. Tomas, Batangas — which it began operating in March that year — had been able to produce capacity for 800 MW, prompting the company to move to 2018 the date for reaching 2,000 MW or a year earlier than target.

He added that the company aims to build its second factory by the end of this year in order to expand the Philippines’ OEM reach. — VVS