PSE index to retest 7,000 as Fed rate cuts loom

August 26, 2024 | 9:00 pm

PSE-720p-2 — PHILIPPINE STAR/KRIZ JOHN ROSALES

PHILIPPINE SHARES could continue to rise when trading resumes after a four-day break after the US Federal Reserve signaled that they could begin cutting rates as early as next month.

The Philippine Stock Exchange index (PSEi) closed at 6,961.96 on Thursday, rising by 1.67% or 114.59 points from its 6,847.37 finish on Aug. 16 and marking its third consecutive weekly gain.

Philippine financial markets were closed on Aug. 23 (Friday) in observance of Ninoy Aquino Day and on Aug. 26 (Monday) for National Heroes Day.

“[This] week, the local market could still move with an upward bias. The monetary policy easing cues from the Federal Reserve in the Jackson Hole Economic Symposium are expected to drive positive sentiment,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“This is as Fed rate cuts are seen to give more room to the BSP (Bangko Sentral ng Pilipinas) to cut their policy rates too, thereby increasing the likelihood that they will continue with their monetary policy easing,” he said.

BSP Governor Eli M. Remolona, Jr. has said they could cut rates again within the year after the Philippine central bank this month slashed borrowing costs by 25 basis points, marking its first easing move in almost four years.

US Federal Reserve Chair Jerome H. Powell on Friday endorsed an imminent start to interest rate cuts, saying further cooling in the job market would be unwelcome and expressing confidence that inflation is within reach of the US central bank’s 2% target, Reuters reported.

“The time has come for policy to adjust,” Mr. Powell said in a highly anticipated speech to the Kansas City Fed’s annual economic conference in Jackson Hole, Wyoming. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”

With its policy rate currently in the 5.25%-5.5% range, the Fed has “ample room” to reduce borrowing costs to cushion the economy, Mr. Powell said.

“The strengthening of the local currency, if it continues, is also expected to give the market a boost,” Mr. Tantiangco added.

The PSEi may continue to test the 7,000 resistance level this week, he said. “If the market gets past and sustains ground above the said level, next resistance is seen at 7,100. Currently, major support is seen at the 6,700 to 6,800 range.”

For its part, online brokerage firm 2TradeAsia.com said in a market note that the market’s immediate support is at 6,800 and resistance is at 7,000-7,500.

“After dropping as low as 184 points (2.79%) for the month, the PSEi is up 7.94% year to date. This quarter’s MSCI rebalancing might cause friction in the near term, but the overall dovish shift in global rates should help sustain the PSEi’s ambition to breach 7,000,” it said.

“Everything is a cycle goes a quote, and markets are likely at the edge of a new one that resembles pre-pandemic conditions,” it added. — Revin Mikhael D. Ochave with Reuters

Obiena takes 5^th place at Polish meet

August 26, 2024 | 8:25 pm

THE ROAD back to Olympic glory continued to be bumpy and treacherous for pole-vault star EJ Obiena after he missed out on a podium finish in the Kamila Skolimowska Memorial in Chorzow, Poland over the weekend.

The World No. 3’s best clearance was 5.82 meters, which was good enough for fifth place in the event that was expectedly won by the greatest pole-vaulter on the planet — Swedish dynamo Armand Duplantis.

Mr. Duplantis blew away Mr. Obiena and the field with a record-breaking performance, an astonishing 6.26m that eclipsed the old mark of 6.25m the former set on his way to the Paris Olympic gold medal.

American Sam Kendricks and Greek sensation Emmanouil Karalis each cleared 6m but the Paris silver winner edged the Olympic bronze medalist via count back to take the runner-up finish.

The Asian champion from Tondo did attempt 6m once after a pair of failed tries at 5.92m.

But his attempt failed, leaving him with his second non-podium finish in three events since his heartbreaking fourth-place finish in the quadrennial meet in the French capital.

He did take a bronze that he shared with several foes at a meet in Lausanne, Switzerland though. — Joey Villar

PLDT seeks semis spot in showdown with Chery

August 26, 2024 | 8:24 pm

PLDT HIGH SPEED HITTERS — FACEBOOK.COM/PLDTHIGHSPEEDHITTERS

Games Today
(Filoil EcoOil Arena)
4 p.m. — PLDT vs Chery Tiggo
6 p.m. — Creamline vs Petro Gazz

PLDT hopes to join sister team Cignal in the semifinals as it clashes with dangerous Chery Tiggo even as Creamline and Petro Gazz renew their rivalry today in the other half of the Premier Volleyball League Reinforced Conference quarterfinals at the Filoil EcoOil Arena.

Although the High Speed Hitters will come in with the better elimination-round record, having finished with a 6-2 mark against the Crossovers’ 5-3 slate when they clash at 4 p.m., the latter owned the former following a 25-19, 20-25, 25-0, 21-25, 15-10 win in the second round on Aug. 3.

“Bawi kami sa next game,” said PLDT coach Rald Ricafort.

Russian Elena Sampoilenko also vowed to give it her best to get the victory.

“Every game we want to win,” she said.

The winner of the PLDT-Chery Tiggo showdown will battle Akari, which eliminated Farm Fresh, 17-25, 25-18, 25-22, 25-23, to advance to the semis.

There is also much more on the line for Creamline, which is seeking to extend its tradition of claiming a podium finish for the 15^th straight conference in a span that saw it claim eight championships.

It would also be extra special for the Cool Smashers as they are going for their first three-peat feat in franchise and league history.

It won’t be a walk in the park though as Creamline will face a Petro Gazz squad that has always found ways to beating them in this conference, which the latter won in 2019 and 2022.

The Angels also bested the Cool Smashers, 25-23, 25-19, 20-25, 23-25, 15-12, on Aug. 13, a mental edge that should come in handy when the two tangle at 6 p.m.

The winner will battle Cignal Thursday at the PhilSports Arena in yet another knockout affair. — Joey Villar

NZ Olympic champion Ko wins British Open

August 26, 2024 | 8:23 pm

OLYMPIC champion Lydia Ko won the women’s British Open by two shots in a tense final round Sunday, capping a memorable three weeks where she won gold in Paris and was also inducted into the LPGA Hall of Fame.

Ms. Ko, world number one Nelly Korda, defending champion Lilia Vu and overnight leader Shin Ji-yai were all on six-under overall at one point as they made their way through the back nine on the blustery Old Course at St Andrews.

In the end it was New Zealand’s (NZ) Ms. Ko who took home the $1,425,000 cheque — the highest amount in the event’s 48-year history — as she won her third major and her first since 2016.

Ms. Ko set the clubhouse target at seven under and after Ms. Shin and Ms. Korda fell by the wayside, Vu needed a birdie putt to force a playoff. But the American underhit her putt on the 18^th to give Ms. Ko a famous win at the home of golf.

“It’s pretty surreal. Winning the gold medal in Paris was almost too good to be true. Heading into the weekend I was in contention and I thought, ‘How is it possible for me to win the AIG Women’s Open?’,” Ms. Ko said.

“I’ve had the most Cinderella-like story these past couple of weeks and it’s almost too good to be true.

“Of all the major championships, this one I’ve had the least amount of confidence, because I’ve had the least amount of experience on links… So to be holding this trophy right now, I can’t believe it.”

Overnight leader Ms. Shin is nicknamed the ‘Final-round Queen’ but the South Korean was the first to crack when she lost her outright lead with a three-putt bogey on the par-four third, bringing Ms. Vu alongside her at the top. Ms. Korda was on par for four holes while Ms. Ko birdied the fourth to put herself within one shot of the leaders, meaning the top four were separated by a single stroke as the Open headed for a tense finish.

However, Ms. Korda was on a mission to regain her lead and she sank four birdies over the next six holes to take the outright lead while she also saved par after finding the bunker on the 11^th to leave Ms. Ko and Ms. Shin two shots behind.

But Ms. Ko also slowly climbed up to top spot with three birdies before a bogey on the 15^th saw all four sharing the lead at six-under overall.

Ms. Ko then put the pressure on Ms. Vu and Ms. Korda when she finished with a birdie on the 18^th for a final round of 69 to set the clubhouse target.

Ms. Korda’s chance of clinching a second major this year went up in smoke when she bogeyed the 17^th and made par on the 18^th to finish two shots behind Ko, the American rubbing the side of her head in disappointment as she walked off the greens.

After Ms. Shin double-bogeyed the 17^th, it was up to Ms. Vu to force a playoff but her putt fell short and Ms. Ko broke down in tears when victory was confirmed. In her disappointment, Ms. Vu also missed her putt for par and had to share second spot with Ms. Shin, Ms. Korda and China’s Yin Ruoning at five under.

“I said before I retire, whenever that is, that I would love to win another major championship,” Ms. Ko added. “That was the goal I set with my coaches and here I am as a three-time major champion.” — Reuters

Duplantis breaks own world record at Silesia Diamond League meet

August 26, 2024 | 8:23 pm

SWEDEN’S Armand Duplantis broke his own pole vault world record when he cleared 6.26 meters at the second attempt at the Silesia Diamond League meeting Sunday.

Mr. Duplantis broke the world record for the 10^th time, beating the 6.25 meters he cleared after retaining his Olympic gold medal in Paris earlier this month.

In Poland, he raised the bar to 6.26, having already clinched victory at 6.00 meters. The 24-year-old had brought the Stade de France crowd to their feet at the Paris Olympics when he broke the world record for a ninth time, and there was always the feeling that Mr. Duplantis was not done yet.

“This year I focused on the Olympics, the record just came naturally because I was in good shape,” Mr. Duplantis said. “So I am not surprised with the record today but I am thankful.”

On Wednesday, Mr. Duplantis cleared 6.15 to win in Lausanne but at the Silesia Stadium in Chorzow he had the bar raised to the world-record height and the Polish crowd waited with bated breath. His first effort was a poor one, perhaps lowering expectations, but then the Swede soared over to huge cheers from the spectators before racing to the track and falling to the ground.

“It almost feels weird and unnatural to get so much love and support from the crowds when I compete. I see that especially in Poland,” Mr. Duplantis said. “The energy in this stadium just keeps getting better every year. My first world record also came in Poland, indoors in Torun (in 2020), so I have great memories from here.”

Olympic silver medalist Sam Kendricks of the United States cleared 6.00 before failing at 6.08 to take second, with Paris bronze-medal winner Emmanouil Karalis of Greece finishing third, also clearing six meters.

The crowd had already witnessed Norwegian Jakob Ingebrigtsen shatter the long-standing 3,000 meter world record with a time of seven minutes 17.55 seconds to beat the record set by Kenya’s Daniel Komen in 1996 when he ran 7:20.67. — Reuters

Norris wins Dutch GP to end Verstappen’s unbeaten home record

August 26, 2024 | 8:23 pm

ZANDVOORT, Netherlands — McLaren’s Lando Norris ended Max Verstappen’s unbeaten home record with a commanding Dutch Grand Prix (GP) victory and second win of his Formula One career to breathe new life into the championship on Sunday.

Red Bull’s triple world champion finished 22.896 seconds behind, after seizing the lead at the start but being passed on the 18^th of 72 laps, with Ferrari’s Charles Leclerc taking the chequered flag in third place.

It was the first time since the race returned to the calendar in 2021 that Mr. Verstappen had not triumphed at Zandvoort and extended his losing streak this season to five races.

His lead over Mr. Norris was cut to 70 points after 15 of a record 24 rounds, with McLaren also cutting Red Bull’s increasingly vulnerable advantage in the constructors’ championship to 30.

“It feels amazing. I wouldn’t say a perfect race because of lap one again, but it was still beautiful. The pace was strong, the car was unbelievable,” said Mr. Norris, who took his first win in Miami in May.

“I could push and get past Max. It was a straightforward race. Tough but enjoyable.”

Mr. Norris had started on pole position for the fourth time in his career and Sunday’s race on the breezy Dutch coast, in front of his rival’s Orange Army of fans, was the first time he had converted the advantage into victory.

It looked at the start that he might have thrown it away once again, the 24-year-old Briton making a sluggish start off the line as Mr. Verstappen hit the throttle and led decisively into turn one.

The McLaren clearly had the pace as well as the drag reduction (DRS) advantage, however, and after one probing attempt on lap 17, Mr. Norris went past down the inside at turn one and pulled steadily away.

Mr. Norris also took a bonus point for fastest lap with a final flourish and was voted Driver of the Day by fans.

“You always hope to do better. We had a good start and tried everything we could but it was clear we were not quick enough,” said Mr. Verstappen.

Mr. Norris’ teammate Oscar Piastri was fourth, ahead of Ferrari’s Carlos Sainz with Red Bull’s Sergio Perez sixth.

The Mercedes pair of George Russell and Lewis Hamilton finished seventh and eighth with Alpine’s Pierre Gasly ninth — and lapped — and Fernando Alonso taking the final point for Aston Martin. — Reuters

Norway’s Ingebrigtsen smashes long-standing 3,000-meter record

August 26, 2024 | 8:21 pm

NORWEGIAN Jakob Ingebrigtsen shattered the long-standing 3,000 meters world record at the Silesia Diamond League meet Sunday by more than three seconds.

Mr. Ingebrigtsen finished in a time of seven minutes 17.55 seconds, erasing the record set by Kenya’s Daniel Komen in 1996 when he ran 7:20.67 in Rieti, Italy.

It was the longest-standing men’s athletics world record in individual track events.

Mr. Ingebrigtsen’s previous best time over the distance came in September last year when he was nearly three seconds slower than Komen’s mark but he was a man on a mission in Silesia.

The 23-year-old Norwegian was in shock when he crossed the line and looked at his time, putting his hands on his head in disbelief.

Mr. Ingebrigtsen received a cheque for $50,000 and posed with it in front of the clock.

“It feels special, amazing. I was hoping to challenge the world record here, but based on my training, I can never predict exactly what kind of time I am capable of,” he said. “I would not have imagined I could run 7:17, though. At the beginning the pace felt really fast, but then I started to feel my way into the race and found a good rhythm.”

“(The) 3,000 is a tough distance. After four-five laps you feel the lactic acid, but you need to get going. The conditions were difficult with the heat today, but it is the same for everyone.”

Three days ago, the Norwegian had exacted a small measure of revenge over American Cole Hocker by winning the 1,500m in Lausanne in 3:27.83, two weeks after Hocker shocked the Olympic field to win gold in Paris.

In the 3,000, he finished ahead of a trio of Ethiopians, with Paris Olympics 10,000m silver medallist Berihu Aregawi second in a personal best and the third-fastest time in history (7:21.28).

Yomif Kejelcha was third.

“Now I want to challenge world records at all distances, but it is one step at a time,” Mr. Ingebrigtsen added. — Reuters

PHL-Canada FTA goals include expanded chip, garment access

August 26, 2024 | 8:10 pm

By Justine Irish D. Tabile, Reporter

THE PHILIPPINES will bat for liberalized trade in semiconductors, electronics, garments, and farm products in negotiating a free trade agreement (FTA) with Canada, an official said.

“We want to optimize (market access) for our semiconductor and electronics products and, of course, garments because we want to help our garment industry,” Trade Undersecretary Allan B. Gepty told BusinessWorld in chance remarks.

“Of course, for our agricultural products, we need to strengthen our competitiveness. There are a lot of agricultural products that have the opportunity to become high-value products,” he said.

These include cacao, coffee, chocolate, and processed foods like fruit cocktail, he added.

In talks with Canada, he said the Philippine objective is to negotiate for the highest level of trade liberalization for goods and services.

“They are strong in services like financial and business services; for goods, they are looking at agricultural goods,” he said.

A bilateral FTA with Canada is among those in the pipeline, along with pending FTAs with the United Arab Emirates, the European Union, and Chile.

The Philippines is also looking to accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, alongside ongoing negotiations for the ASEAN-Canada FTA, the Digital Economy Framework Agreement in ASEAN, and the upgrade of the ASEAN-China FTA and ASEAN Trading Goods Agreement.

“For the FTA with Canada, the talks are ongoing. We had a mapping exercise or stock-taking exercise wherein we talked about our interests and what the possible challenges that we would need to confront,” he said.

Asked to elaborate, he said: “Maybe it’s not really a big challenge for us. But it just so happened that there are new elements in an FTA. So, the consultation process needs to be intensified.”

On the progress of talks with Chile, he said the Philippines is awaiting word on the continuation of negotiations.

“We are conducting a joint study with Chile on a possible FTA. So, once they finish the study, we can, of course, push for an FTA,” he said.

“But we are very positive that there’s a great potential to strongly and, of course, closely collaborate with Chile, as it is one of our directives for us to establish a trading partner in Latin America,” he added.

Rice industry wants more say in review of tariff EO

August 26, 2024 | 8:04 pm

THE GOVERNMENT needs to improve industry representation in the review of Executive Order (EO) No. 62, which cut the tariff on imported rice to 15%, an industry group said.

“In reviewing EO 62, we hope that farmers, seed growers, millers, wholesalers, retailers, and importers” can take part, Philippine Rice Industry Stakeholders Movement (PRISM) Founder and Lead Convenor Rowena D. Sadicon told reporters on the sidelines of a rice forum last week.

EO 62’s new tariff setting is in force until 2028, subject to review every four months in the event of changes to global prices and supply.

“On our side, the stakeholders, we cannot really question (EO 62) because there is a reason for it. But it’s probably the execution and the timing,” Ms. Sadicon added.

Industry and farmer groups have questioned the validity of the EO, claiming lack of public consultation.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. had said that a fall to the P45 per kilo price level for rice may remain likely by mid-October if foreign exchange rates and world market rice prices remain stable.

PRISM Co-Founder Orlando Manutag said Vietnamese traders have begun canceling contracts of Philippine rice importers as prices rise in Vietnam.

The difference in the Philippine contract and the Vietnam market price is “around $60 to $70 per metric ton (MT),” Mr. Manutag added.

“Our importers in June didn’t buy rice because they were waiting for the lower tariffs. When the importers started to buy, Vietnam raised prices,” he said.

Vietnam supplies the majority of the Philippines’ rice imports, accounting for 75.88% of all shipments as of Aug. 8, according to the Bureau of Plant Industry. This was equivalent to 1.95 million MT, in the year to date.

“The government should intercede in this matter,” he added.

In January, the Philippines and Vietnam signed an agreement giving the Philippines a quota of between 1.5 and 2 million MT (MMT) of rice annually for five years.

Earlier, the US Department of Agriculture lowered its Philippine rice import forecast to 4.6 MMT this year due to weaker-than-expected purchases from Vietnam. — Adrian H. Halili

BIR confirms tax-free status of gymnast Yulo’s prize haul

August 26, 2024 | 8:03 pm

TWO-TIME Olympic gold medalist Carlos Edriel P. Yulo is exempt from paying taxes on the prizes and incentives he received after he won two events at the Paris games, the Bureau of Internal Revenue (BIR) said.

“The National Internal Revenue Code (NIRC) exempts Carlos Yulo from paying taxes for the prizes, awards, rewards, gifts, or donations he received. The BIR congratulates our two-time Olympic gold medalist for his performance in the 2024 Paris Olympics,” BIR Commissioner Romeo D. Lumagui, Jr. said in a statement.

Under Section 32(B)(7)(d) of the NIRC, prizes or rewards given to athletes who participated in both domestic and international competitions are exempt from income taxes.

Mr. Yulo is also covered by the Republic Act (RA) No. 10699 or the National Athletes and Coaches Benefits and Incentives Act, which classified his prizes as exempt from income tax, the BIR said.

Section 32(B)(3) of the NIRC also indicates that the value of property acquired by gift, bequest, devise, or descent are also excluded from gross income, shielding these assets from income taxes.

“The rewards, gift or donations (in any form) given to Mr. Yulo by private entities, or individuals clearly fall under this exemption. Therefore, Mr. Yulo need not declare these as part of his gross income, and he shall not be liable to pay any income tax thereon,” BIR said.

Earlier this month, Mr. Yulo won gold medals in the men’s floor exercise and men’s vault in the Paris Olympics.

Mr. Yulo’s cash prizes and incentives have been valued at over P100 million, according to reports.

These include prizes he is entitled to under law, such as the P20 million as prescribed by RA 10699, which provides for a P10-million cash gift for each Olympic gold medal earned. — Beatriz Marie D. Cruz

Meat imports rise 9.6% in first half

August 26, 2024 | 8:03 pm

MEAT IMPORTS rose 9.64% by volume year on year in the first half, led by pork, chicken, and beef, the Bureau of Animal Industry (BAI) reported.

The BAI said imports amounted to 647.75 million kilograms during the first half. The June total rose 9.5% to 123.07 million kilos.

Shipments of pork, which accounted for 48.9% of meat imports overall, rose 10.7% to 316.99 million kilos during the period.

Spain supplied around 80.74 million kilos of pork, followed by Brazil (71.96 million kilos), and Canada (46.75 million kilos).

Chicken imports made up 34.3% of the total. Shipments increased 4.1% year on year to 40.37 million kilos.

Brazil remained the top supplier of chicken with shipments of 121.14 million kilos, followed by the US (67.48 million kilos), and Australia (9.17 million kilos).

Beef imports increased 29.3% to 84.92 million kilos during the six months, accounting for 13.1% of the meat import total.

Beef from Brazil amounted to 30.52 million kilos, followed by Australia (24.2 million kilos), and Ireland (7.7 million kilos).

Imports of turkey increased to 722,529 kilos from 112,923 kilos a year prior.

On the other hand, imports of lamb, duck, and buffalo meat declined in the first half.

Imports of buffalo dropped 8.7% to 23.1 million kilos.

Shipments of duck and lamb fell during the period by 47.4% to 85,854 kilos and 22.5% to 327,380, respectively. — Adrian H. Halili

TransCo says buffer fund for feed-in tariff ‘depleted’

August 26, 2024 | 8:02 pm

STATE-RUN National Transmission Corp. (TransCo) said that the working capital allowance (WCA) or the buffer fund of the feed-in tariff allowance (FIT-All) system has been “depleted” following a suspension of collections.

Rogelyn T. Ronquillo, a manager with TransCo’s Regulatory Affairs Department, said TransCo needs to build up the buffer again, possibly via the proposed new FIT-All rate for 2025.

“On the increase in the FIT-All rate, one reason is that we have to establish the buffer fund which is fully depleted right this moment,” Ms. Ronquillo told BusinessWorld via text message.

The FIT-All is a uniform charge billed to on-grid electricity customers to support the development and promotion of renewable energy (RE). The WCA is part of the FIT-All and serves as buffer to address any default or delay in collections.

Payments are remitted to the FIT-All fund established and administered by TransCo. The fund goes towards paying eligible RE developers who have obtained fixed rates for electricity generated by their projects.

As the administrator, TransCo is tasked to file the rate application before the Energy Regulatory Commission (ERC) for setting the annual FIT-All rate.

For 2025, the state-run firm is seeking an increase to P0.1006 per kilowatt-hour (kWh) from the current P0.0838 per kWh to support RE plants registered under the current FIT system and the potential RE plants to be built under the Green Energy Auction.

Ms. Ronquillo said that the proposed FIT-All rate was computed based on the assumptions and formula provided by the ERC FIT-All guidelines.

“We assume a market price of P6/kWh and assuming this remains constant until 2025 and all other factors are constant, the computed FIT-All Rate will be enough for 2025,” she said.

TransCo said that the approval of the proposed 2025 FIT-All rate would allow it “to fulfill its duties and ensure timely payments of the FITs to FIT-eligible RE developers.”

“Currently, we only have the P3,500 maintaining balances of FIT-All accounts — this is because, the FIT-All rate was suspended for 14 months — and the new FIT-All rate was implemented in June 2024,” Ms. Ronquillo said.

Outstanding payables to FIT-All eligible RE developers amounted to P367 million as of Aug. 24, she said.

“For the remaining months of 2024, if the market price remains P6/kWh, the current rate can cope and pay the RE revenues,” Ms. Ronquillo said.

Earlier this year, the ERC decided to lift the 14-month collection suspension due to the projected deficit in the FIT-All Fund.

In a decision promulgated on March 20, the ERC authorized TransCo to collect a FIT-All equivalent to P0.0838 per kWh. This has increased from P0.0364 per kWh previously. — Sheldeen Joy Talavera