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Inflation, El Niño, geopolitical tensions impacted markets in Q1

PHILIPPINE STAR/EDD GUMBAN

By Karis Kasarinlan Paolo D. Mendoza

A MIXTURE of inflation, El Niño, and geopolitical tensions continued to rock the financial markets in the first quarter while analysts expect borrowing costs to come down in the latter half of the year.

The Philippine Stock Exchange index (PSEi) — the barometer for the country’s stock market — closed the first quarter at 6,903.53, up 6.2% from 6,499.68 in the same period last year. The index was also up 7% from 6,450.04 in the October-December 2023 period.

Meanwhile, data from the Bankers Association of the Philippines showed the peso closed at P56.24 to the dollar in the first quarter, weakening by 1.6% and 3.5% from the fourth and first quarters of last year, respectively.

According to the Bangko Sentral ng Pilipinas (BSP), the peso weakened in the first two months of the year due to higher market expectations of US Federal Reserve’s monetary policy continuing restrictions following higher-than-expected US inflation and strong labor data.

“Concerns over potential escalation of geopolitical conflicts in the Middle East and in the West Philippine Sea also had an impact on market sentiment. Nonetheless, the peso recovered in March amid signals from the US Fed on the timing of its monetary policy easing cycle possibly in the latter half of the year,” the BSP said.

The demand for Treasury bills (T-bills) reached P551.49 billion with offered T-bills reaching P202.3 billion in the first quarter. Demand was higher than P443.8 billion in the same quarter in 2023, and P300.51 billion in the final quarter of last year.

The oversubscription amount reached P349.19 billion, nearly twice last quarter’s P188.22 billion.

Treasury bonds jumped to P1.07 trillion from P461.69 billion in the previous quarter.

At the secondary market, domestic yields rose by 24.23 basis points (bps) on average quarter-on-quarter based on the PHP Bloomberg Valuation (BVAL) Service Reference Rates published on the Philippine Dealing System’s website.

On an annual basis, yields were also up by 12.38 bps.

Alvin Joseph A. Arogo, economist at Philippine National Bank (PNB), said in an e-mail that expectations of easing interest rates led to “mostly favorable movements” in the local financial markets in the January-to-March period.

In January, former Finance Secretary Benjamin E. Diokno said the central bank may reduce borrowing costs by up to 100 bps if inflation settles within the BSP’s 2-4% target.

Inflation fell within the BSP’s target of 2-4%, averaging 3.5% as of end-May.

The BSP has kept its policy rate steady at 6.5%.

However, other analysts said that headwinds such as geopolitical tensions, global inflation, and El Niño dampened markets in the first quarter.

Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines (UnionBank), said in an e-mail that tensions between Russia and Ukraine and Israel and Palestine caused an increase in oil and energy prices, negatively impacting financial markets.

“The war in Ukraine and potential conflicts in the Mideast ramped up risk aversion and disrupted global economic growth,” Security Bank Corp. Chief Economist Robert Dan J. Roces likewise said in a separate e-mail interview.

“Rising inflation in major economies notably the US and a sentiment pivot by the US Federal Reserve on the back of mixed economic data triggered capital flight from emerging markets like the Philippines,” he added.

The Fed kept its policy rate at 5.25-5.5% on May 1, waiting for “greater confidence” in easing inflation before cutting rates, Reuters reported.

High commodity prices such as that of oil and food further spurred domestic inflation, Mr. Roces said.

On the other hand, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., sees possible rate cuts despite geopolitical tensions.

“Global crude oil prices still hovered among two-year lows or since January 2022 despite the increased geopolitical tensions between Israel and Iran. That could still help US and local inflation to ease further, thereby supporting possible cuts in Fed and local policy rates later in 2024,” he said.

“At a local lens, the Philippine markets were affected as the agriculture industry faced the firsthand effects of El Niño. With lower crop yields and higher production costs, companies that are reliant towards agriculture resulted in price increases,” Mr. Asuncion said.

The effect of El Niño is expected to persist until May, causing agricultural produce to continue increasing in prices.

“[El Niño] is also expected to affect the foreign exchange markets. Since the Philippines heavily relies on exporting agricultural goods, the country’s trade balance and currency value will be negatively affected,” Mr. Asuncion said.

INDICATORS TO WATCH OUT FOR
Mr. Roces said that easing geopolitical tensions or a slowdown in global inflation could bode well for market performance, but continued headwinds could lead to volatility.

He also noted that Philippine economic data and the BSP’s monetary policy decisions are key factors to watch out for.

Analysts also said that Fed rate cuts should be monitored closely, as the Fed could be matched locally by the BSP later in the year.

“The outlook for US monetary policy continues to be a significant factor for emerging markets and thus may exert some pressure on domestic financial markets. In particular, expected delays in the US Fed’s policy easing cycle have fortified risk-off sentiment among market participants, which may indicate increased safe-haven trade and continued broad US dollar strength,” the BSP said.

Analysts said that the BSP will also consider inflation, economic growth, and exchange rate stability before cutting rates.

“If inflation shows a sustained downward trend and settles within the target range 2-4%, a rate cut becomes more likely. Continued economic growth without inflationary pressures would support a rate cut, and a stable peso is crucial to avoid imported inflation and potential capital outflows,” Mr. Roces said.

The central bank likewise said that its priority is to ensure that inflation will consistently be within its target before it starts its monetary easing cycle.

“The BSP deems it appropriate to keep monetary policy settings sufficiently tight in the near term to ensure that inflation reverts back to target inflation path before shifting to an accommodative policy stance,” it said.

“Since inflation continues to persist, there will be an increase in the yield on fixed income securities, leading to capital losses for bondholders,” Mr. Asuncion said.

PNB’s Mr. Arogo sees interest rate at 6% by end-2024 as they expect inflation to settle within the BSP’s 2-4% target starting September.

“In our view, however, the BSP should not cut rates ahead of the Fed or else risk further exchange rate weakness. If the Fed eases by 25 bps each on September and December, the BSP could follow in October and December,” Mr. Arogo said.

He expects markets to remain volatile in the second quarter due to uncertainty of the timing and magnitude of rate cuts amid fluctuations in inflation.

Mr. Asuncion expects seasonal effects to remain a factor in the second quarter and throughout the year as La Niña may develop in July or August this year. He added that the unpredictably of the climate may negatively impact sectors such as agriculture, construction, and tourism.

“In line with La Niña, there is a risk of flooding and landslides which will lead to delays or increased government spending in the construction of public works and destroyed crops from floodings leading to an increase in the production cost and the price of agricultural produce. In this case, investors will be keen on potential fluctuations in the market, to anticipate potential upward spikes in these commodities,” he said.

The BSP also said that supply-induced inflationary pressures stemming from adverse weather conditions may shift expectations and lead to further second-round effects.

On the upside, domestic factors such as economic growth prospects as well as growth in remittances and foreign direct investments are expected to help markets, it said.

FOREIGN EXCHANGE (FX) MARKET
Mr. Asuncion: The monthly USD-PHP exchange rate has been moving within the 55.88-56.03 range on average. However, in the beginning of [the second quarter], this increased to an average of 56.99 for April. For the remainder of [the second quarter], exchange rates are expected to face an increase, especially for the month of May, as the Philippines experiences negative implications from external factors such as US monetary policy, extreme heat from El Niño, increasing geopolitical tensions, etc.

Mr. Roces: The peso faces depreciation pressure due to potential global capital outflows and a stronger US dollar.

Mr. Ricafort: Improved US/global market risk appetite that could support sentiment on Emerging Markets, such as the Philippines, after US stock markets again posted new record highs. It is important to note that the US dollar-peso exchange rate already posted a bigger increase compared to most ASEAN currencies since the start of 2024 and since the Russia-Ukraine conflict started on Feb. 22, 2022.

EQUITIES MARKET
Mr. Asuncion: PSEi index closed at 6,646, 6,945, and 6,904. As for [the second quarter], the month of April ended with a close of 6,700. With historical data and Autoregressive Integrated Moving Average (ARIMA) models, we have forecasted the remaining months to have a close of 6,733 and 6,765 for May and June, respectively. Evidently, decreasing by a substantial amount when compared to Q1 index. This, however, is set to recover as we forecast a close of 6,962 by the end of 2024.

Mr. Ricafort: The local stock market gauge, the PSEi, corrected lower recently, at 6,607.22 after higher-for-longer signals from most Fed officials recently that partly reduced the odds of Fed rate cuts. Mostly higher net income of local listed companies recently that could support valuations. Seven-month support is at 6,360, which helps keep intact the underlying upward trend/momentum over the past seven months or since October 2023.

BSP: External developments including uncertainty in the timing of the US Fed’s monetary policy easing cycle due to delayed US inflation progress, subdued global economic growth prospects amid the elevated interest rate environment, as well as geopolitical concerns in the Middle East are expected to influence movements in domestic financial markets in the remainder of the second quarter. Other factors affecting market sentiment, such as the increasing upside risks to domestic inflation, as well as lingering geopolitical tensions in the West Philippine Sea will likewise continue to influence market movements.

FIXED-INCOME MARKET
Mr. Asuncion: Fixed-income inflation during [the first quarter] headlined at 2.77%, 3.4%, and 3.7%. In [the second quarter], the headline for inflation in April was 3.8%. Based on historical data ARIMA models, we have projected that May and June will have inflation headline values of 3.97% and 4.47%, respectively, for the coming months. Since inflation continues to persist, there will be an increase in the yield on fixed-income securities, leading to capital losses for bondholders.

Mr. Roces: If the BSP maintains current interest rates, fixed-income yields could rise, making existing bonds less attractive. However, new bond issuances with higher yields could be appealing to investors.

Mr. Ricafort: PHP BVAL yields mostly corrected lower since May 2024: Long-term PHP BVAL yields mostly among one-month lows, with the 10-year tenor at 6.7%. Further local policy rate pauses or cut (especially in 2024) could already be possible for the coming months, as fundamentally supported by the easing inflation trend as seen recently amid higher base/denominator effects; also, as a function of future Fed rate pause or cut. n

BPEC’s Delgado seeks stronger community participation in energy, water development

FRITS T. DELGADO

By Sheldeen Joy Talavera, Reporter

IN the energy and water sectors, Frits T. Delgado, president of renewable energy company BPE Corp. (BPEC), seeks to foster a collaborative community focused on problem-solving.

“I want a community that challenges itself rather than protects and becomes territorial,” Mr. Delgado said in an interview with BusinessWorld.

“I want it to be dynamic. I want people to contribute,” he added.

He also expressed his desire for a community that values not just the product, but also its narrative and goals, ensuring that its purpose is not forgotten when challenges arise.

“I want a community like that, that doesn’t only focus on the product, but the story and where it’s going, what we’re after here. So that when problems emerge, you don’t lose sight of why it was put there in the first place,” he said.

BPEC was founded in 2020 amid the coronavirus pandemic and began full operations in 2022. The company, headquartered in Pasig, is a partnership between advisory firm GAA Delgado, Inc. (GAAD) and BlueCap Hydro Group of The Hague, Netherlands. Their focus lies in the development of various micro-hydro projects utilizing BlueCap Hydro’s proprietary turbine technology.

BEFORE BPEC
Mr. Delgado started working as a business development officer at GAAD in 2016. He also became an advisor for two liquefied natural gas power plants.

“I came into college not knowing what I wanted to take. I really wanted engineering. Well, firstly, because I was pretty good at math and I loved figuring out how to build things, spacing them, and all of this. I liked learning about processes rather than rules,” he said.

He enrolled in an undergraduate program in management at Ateneo de Manila University but did not complete it. He then transferred to Kalayaan College to study psychology, which aided his understanding of human motivation.

“It felt like a default… There was no fulfillment in management at the time. Because I couldn’t contextualize it…, I think people have to get their hands wet first before you can apply management principles,” he said.

Mr. Delgado pursued a few units of a Master of Science and Management program but was unable to continue as he needed to dedicate his time to BPEC.

COMPANY PROJECTS
BPEC is currently constructing a pilot mini-hydropower project in Bulacan, scheduled to be commissioned in July, and is expected to be commercially operational this year, supported by an initial investment fund of $20 million.

Micro-hydropower plants, which typically range from one to 100 kilowatts in capacity, generate electricity by harnessing the natural movement of water.

In 2023, the company entered into a memorandum of understanding with the National Irrigation Administration to conduct a feasibility study for the pilot installation of a micro-hydropower plant at the weir of Angat-Maasim River Irrigation System in the municipality of Angat, Bulacan.

“We are funded by direct investments from the investor pool of my partner, BlueCap. We also receive partial funding from the Dutch government through specific grants and another from a soft loan provided by one of their development banks,” Mr. Delgado said.

He described the company’s turbine, to be used for the hydropower project, as unique “because it’s oriented horizontally… so it passes from left to right.”

Due to its small and modular design, the project can be installed in irrigation channels, which, he said, “enhances the overall value of the structure.”

“When managing water, it’s crucial to consider it as if it were infinite in nature but uncontrolled and disorganized, as it originates from nature.”

“There’s a concept of not building on the mountain, but building with it… You don’t compromise its integrity or aesthetics, but rather work in harmony with it. That’s the essence of what I aim to achieve with BPEC,” he added.

LESSONS FROM HIS FATHER
As he delves into his career, he said he brings with him the lessons from his father, Guido Delgado, who currently chairs GAAD and formerly served as president and chief executive officer of the state-run National Power Corp. (Napocor) from 1994 to 1998.

His father’s tenure as Napocor president was after the height of the power crisis in the Philippines in the early 1990s.

From October 1992 to May 1993, the main island grid of Luzon experienced rotating brownouts of up to 10 hours daily, as reported by the Los Angeles Times.

“A lot of the big functional plants were put up at that time,” he said.

Napocor provides power generation and associated power delivery systems in areas not connected to the transmission system, through the Small Power Utilities Group.

“There was a lot of mentorships involved from my father, of course. He’s very skilled in financial structuring, marketing, dealing with the regulatory and all that. I took all of that, all of those learnings, simulated it,” he said.

Excellence in immunization

MUFID MAJNUN-UNSPLASH

The city government of Carmona, Cavite is a showcase of how leadership and community participation result in the effective delivery of health services, particularly immunization.

Carmona City achieved 85% fully immunized child (FIC) coverage rate in 2023 and 97.8% influenza immunization rate for senior citizens, as well as recorded zero cases of measles, polio, diphtheria, and neonatal and maternal tetanus for the past several years. In 2022 and 2023, Carmona City was among the Department of Health (DoH) Golden Jab Awardees for achieving the highest vaccination coverage for measles and rubella supplemental immunization among LGUs nationwide.

How did Carmona City achieve these impressive immunization milestones?

Mayor Dahlia Loyola presented Carmona City’s immunization initiatives during the Health Connect media forum in celebration of World Immunization Week 2024 and the 50th anniversary of the Expanded Program on Immunization (EPI).

First, the city government provides a supportive environment for immunization by consistently increasing its annual budget allocation for purchasing vaccination supplies and additional vaccines, alongside enhancements in health facilities and cold chain logistics.

Health workers, public school teachers and students from Carmona City participated in the S.H.I.E.L.D. Against Cervical Cancer Program Strengthening HPV Immunization towards Elimination through Leadership Development. In partnership with the Philippine Foundation for Vaccination (PFV) and Raising Awareness on Influenza to Support Elderlies (RAISE) Coalition, the LGU organizes community vaccination for senior citizens on Sept. 11 of every year in celebration of Grandparents’ Day. House-to-house immunization activities are also regularly conducted to cater to bedridden residents.

In 2022, the LGU launched the “Bata V.I.P ka sa Carmona” vaccination incentive program to encourage students from Kinder to Grade 12 to get their complete and updated COVID-19 vaccines. The program provided a P500 cash incentive to all students who completed their first two doses and succeeding two booster shots, coupled with rice assistance to their parents. Through their Biyaheng Bakuna Centers initiative, the city government provides residents, particularly those from far-flung municipalities, with free transportation to vaccination centers.

During every official event and activity, City Health Office and barangay health stations personnel include information dissemination on the importance of immunization in maintaining and improving the health of our constituents. Mothers Class sessions are held every Bakuna Day to empower parents and enhance immunization literacy.

Town hall meetings are organized, and advocacy videos are shown to build trust in vaccines and bolster vaccine uptake during supplemental immunization activities.

Second, the city government provides policy support for immunization. The then Carmona Municipal Council passed Municipal Resolution No. 018-2010 to support the DoH “Bakuna ang Una sa Sanggol at Ina” program by allocating the necessary funds for vaccination and other related EPI activities. They also issued Executive Order No. 61 directing the prioritization and intensification of Carmona’s vaccination program. The city government also utilizes the Local Disaster Risk Reduction Management Office (LDRMM) Fund to purchase additional vaccines and supplies for outbreak response activities.

Third, the city government strengthens community action by initiating Barangay Emergency Health Response Teams for timely disease surveillance and reporting. Barangay health workers (BHWs) as well as family health workers (FHWs) provide invaluable support to supplemental and catch-up immunization activities.

The LGU engages with various community stakeholders and partners such as NGOs, civil society organizations, the Department of Education (DepEd), parent-teacher associations (PTAs), and religious organizations to ensure effective information dissemination and immunization demand generation.

Fourth, health workers’ skills are developed through local training and budgetary support for capacity-building seminars. Interpersonal communication training has transformed BHWs to “Bakuna Champions” who are boosting vaccination updates in Carmona City.

Lastly, the city government reoriented health services through the establishment of the Health Promotion Unit and Health Promotion Board. This reorientation underscores the shift towards prioritizing health promotion and disease prevention alongside basic health services.

Looking ahead, the city laid out the administration’s plans. First, develop a comprehensive immunization plan. Second, strengthen the city’s cold chain infrastructure. Lastly, increase the annual budget allocation for capacity development in support of immunization.

The Mandanas Ruling by the Supreme Court in 2018 and confirmed in 2019 mandates a substantial increase in the share of National Government tax revenue transfer to local governments. It is expected to provide opportunities for improving service delivery through enhanced decentralization.

While awaiting the full implementation of the Mandanas Ruling, Mayor Loyola called on the National Government to provide budgetary support to second- to sixth-class municipalities to enable them to implement effective health programs including immunization initiatives. First-class LGUs are more than capable of funding immunization programs if they want to, she added.

 

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines (PHAP). PHAP 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.

Debt yields drop on May inflation data

YIELDS on government securities (GS) mostly went down last week as Philippine inflation picked up at a slower pace than expected last month.

Yields, which move opposite to prices, fell by an average of 2.73 basis points (bps) week on week, according to data from the PHP Bloomberg Valuation Service Reference Rates as of June 7 posted on the Philippine Dealing System website.

Rates at the short end were mixed, with the rate of the 91-day Treasury bill (T-bill) going down by 3.18 bps to 5.7038%. Meanwhile, yields on the 182- and 364-day T-bills went up by 4.07 bps and 1.61 bps to 6.0003% and 6.0814%, respectively.

At the belly of the curve, yields on the two-, three-, four-, five-, and seven-year Treasury bonds (T-bonds) went down by 2.65 bps (to 6.2818%), 4.05 bps (6.3418%), 5.09 bps (6.3992%), 5.7 bps (6.4564%), and 6.27 bps (6.5645%), respectively.

At the long end, the 10-, 20-, and 25-year debt papers dropped by 5.69 bps (to 6.6947%), 0.32 bp (6.8254%), and 2.78 bps (6.8141%), respectively.

GS volume traded rose to P14 billion on Friday from P12.51 billion on May 31.

Analysts attributed the mostly lower GS yields last week to softer-than-expected May inflation.

“The May inflation was a surprise to the downside as market expectations were at 4% and the 3.9% figure was on the lower end of BSP’s (Bangko Sentral ng Pilipinas) expected range.

Although it was at a six-month high, it was mostly expected to spike until July due to base effects,” a bond trader said in a Viber message.

The Philippine consumer price index (CPI) accelerated to a six-month high of 3.9% in May from the 3.8% pace in April, the government reported last week.

Still, this was slower than the 6.1% in May last year. This was also within the BSP’s 3.7-4.5% forecast fro the month and was a tad lower than the 4% median estimate in a BusinessWorld poll of 16 analysts.

“Yields were still lower for the week as they tracked the movements in US Treasury (UST) yields and was instead spurred on by the inflation print,” the bond trader added.

“UST yields [moving] lower reflect market pricing in Federal Reserve rate cuts as well, so that means easier for BSP to deliver on their own projected cuts,” a second bond trader added.

On Thursday, benchmark 10-year US Treasury yields were a touch higher at just over 4%, although that was still near their lowest in two months, after data this week hinted that the US labor market is finally cooling.

That included private US payrolls on Wednesday and a report on Tuesday that showed job openings fell in April to the lowest in more than three years.

However, on Friday, surprisingly strong US monthly jobs data dimmed hopes that the Federal Reserve would soon follow euro zone and Canadian interest rate cuts, causing Treasury yields to shoot higher.

The world’s largest economy added 272,000 jobs last month, beating the 185,000 hires predicted by economists and derailing an investor consensus that the jobs market had slackened just enough to push consumer prices lower.

The benchmark 10-year US Treasury yield, a benchmark for borrowing rates globally, leapt over 15 bps after the jobs report, to 4.4335%, its biggest one-day jump in about two months.

The two-year yield, which tracks interest rate expectations, climbed nearly 17 basis points to 4.8868%, following six straight days of declines until Thursday. Bond yields rise as prices fall.

Money market pricing just after the payrolls data implied traders saw the Fed only starting to cut rates from their 23-year high of 5.25-5.5% by November. US interest rate futures also lowered the chances of the Fed’s cutting rates by 25 basis points in September to 56%, down from around 70% on Thursday, according to LSEG’s Fedwatch.

For this week, the bond traders said GS yield movements will depend on the latest US jobs data released on Friday.

“Market will react to the [non-farm payrolls] figure from the US and its consequent effect on rate cut expectations by the Fed. While the BSP has stated that it can reduce ahead of the Fed, it is unlikely to do so given the potential effects on the peso-dollar exchange rate,” the first bond trader said. — Karis Kasarinlan Paolo D. Mendoza with Reuters

Mass fish deaths in Mexico blamed on severe drought

REUTERS

ANAHUAC, Mexico — Thousands of dead fish have blanketed the surface of a lagoon in Mexico’s northern state of Chihuahua, and officials are blaming an intense drought. The fish deaths at the Bustillos Lagoon, by the town of Anahuac in Chihuahua, came during long dry spells as temperatures have climbed above 40 degrees Celsius. The lagoon’s water levels are dangerously low, officials said.

Some form of drought is afflicting nearly 90% of Mexico, the highest rate since 2011, according to government data.

Chihuahua state has been hit particularly hard with most of its territory engulfed by the most extreme levels of dryness.

There was much less water in the lagoon for the fish to live in, and the remaining water was of poor quality, according to Irma de la Pena, head of the Ecology Department in the city of Cuauhtemoc.

“When the amount of water decreases, the pollutants become more concentrated and therefore they also affect the species that live here,” Ms. De la Pena said.

Mass fish deaths in the area have happened in previous years when the lagoon dried up and fish stranded. Livestock, including cows and donkeys, are also perishing as dams run low and farmers struggle to secure water.

Heat and drought have become so severe that many people who rely on agriculture have packed up and left.

“It’s very abandoned because since it doesn’t rain… they no longer dare to continue living here,” said Jesus Maria Palacios, a raiser of livestock in Cuauhtemoc.

At the lagoon, authorities are racing to cover the dead fish with lime, concerned their rapid decomposition under the baking sun could endanger public health by attracting insects and spreading disease. They are asking local organizations to help.

“What we need is support, especially with the potential we have for a health issue,” said Saul Sausameda, president of the Anahuac community. — Reuters

Eight Jetour T2 SUVs up for grabs for Midori customers

From left are Miss Midori Queen and official Miss World candidate (from Tarlac) Jasmine Omay; BB International Leisure and Resort Development Corp. Director and Casino Head Edgar Lim; Jetour Auto Philippines, Inc. (JAPI) Managing Director Lito Jose; and Marketing Director May de los Santos. — PHOTO BY KAP MACEDA AGUILA

FOLLOWING a successful partnership that saw the raffling off of four Jetour vehicles (two X70 Journey seven-seater SUVs and two Dashing crossovers), Jetour Auto Philippines, Inc. (JAPI) and Midori Clark Hotel and Casino recently forged another deal that would give away a total of eight Jetour T2 4WD SUVs to lucky patrons.

“Midori Clark Hotel and Casino was our first partner hotel when we launched in the Philippines in March 2023. Their trust in our brand has been instrumental in our success… recognizing the potential in the world-renowned Jetour brand,” said JAPI Managing Director Miguelito Jose.

Eligible to join the raffle are hotel and casino guests who sign up for test drives. Two winners were already picked last May 31 and June 1. The next raffle draws will be on July 26 and 27, Sept. 27 and 28, and Nov. 29 and 30. Jetour T2 units are on display at Midori Clark Hotel and Casino, with test drives available every weekend until the end of the year.

Midori Clark Hotel and Casino is managed by BB International Leisure and Resort Development Corp. It is said to be the first luxury hotel in the Clark Freeport Zone. JAPI is the exclusive distributor of Jetour vehicles — offering a range of high-technology, quality-engineered SUVs, crossovers, and EVs.

For more information, visit www.jetourauto.ph and www.midorihotel.com.

Top Frontier Investment Holdings, Inc. to hold 2024 Annual Stockholders’ Meeting on July 9 via remote communication

NOTICE OF 2024 ANNUAL STOCKHOLDERS’ MEETING
July 09, 2024

The 2024 Annual Stockholders’ Meeting of TOP FRONTIER INVESTMENT HOLDINGS, INC. will be held on July 09, 2024 (Tuesday) at 2:00 p.m. The Company will conduct the Meeting through remote communication.

The proceedings will be livestreamed at the Company’s website www.topfrontier.com.ph. The Chairman will preside the Meeting at 40 San Miguel Avenue, Mandaluyong City, Metro Manila, Philippines.

The Agenda of the 2024 Annual Stockholders’ Meeting is as follows:

  1. Certification of Notice and Quorum
  2. Approval of the Minutes of the Annual Stockholders’ Meeting held on August 03, 2023
  3. Presentation of the Annual Report
  4. Ratification of Acts and Proceedings of the Board of Directors and Corporate Officers
  5. Appointment of External Auditors
  6. Election of the Board of Directors
  7. Approval of the Per Diem Allowance for Directors
  8. Other Matters
  9. Adjournment

The electronic copies of the Minutes of the Annual Stockholders’ Meeting held on August 03, 2023, the Notice of the 2024 Annual Stockholders’ Meeting, the Definitive Information Statement (together with the Management Report), the sample ballot and proxy form, the 2023 Annual Report (SEC Form 17-A), the 1st Quarter 2024 Report (SEC Form 17-Q), the summary of the resolutions of the Board of Directors since August 03, 2023, and other pertinent documents for the 2024 Annual Stockholders’ Meeting, are available at the Company’s website and can be easily accessed through this link: www.topfrontier.com.ph/index.php/investor/TFASM2024. The aforementioned Company reports and other disclosures are likewise available in the Philippine Stock Exchange Electronic Disclosure Generation Technology (PSE Edge).

Stockholders can only attend the 2024 Annual Stockholders’ Meeting by remote communication by following the procedure summarized below.

a. Stockholders may view the livestream of the meeting by accessing the link provided in the Company website www.topfrontier.com.ph. There will be an audiovisual recording of the proceedings, for future reference.

b. Attendance of the stockholders of record as of May 28, 2024 shall be counted, and their votes will be cast, through ballots submitted by the stockholders or their proxies. The deadline for the submission of ballots and proxies is on June 25, 2024. Ballots and proxies may be sent through email at stockholders@topfrontier.com.ph or by mail to the SMC Stock Transfer Service Corporation office located at the 2nd Floor, SMC Head Office Complex, No. 40 San Miguel Avenue, Mandaluyong City 1550, Metro Manila, Philippines. Validation of ballots and proxies will be on July 02, 2024 at 2:00 p.m. at the SMC Stock Transfer Service Corporation office located at the above-mentioned address.

For an individual, his/her ballot or proxy must be accompanied by a scanned copy of his/her valid government-issued identification card with photo for verification of identity. For a corporation, its ballot or proxy must be accompanied by its Corporate Secretary’s certification setting the representative’s authority to vote and/or represent the corporation in the meeting, where applicable.  Ballots and proxies need not be notarized. For your convenience, a sample ballot/proxy is attached to the Definitive Information Statement. Hard copies of the ballots and proxies and notarized Secretary’s Certificates are requested to be sent to the SMC Stock Transfer Service Corporation office located at the above-mentioned address within a reasonable time thereafter.

c. The Company shall entertain questions and comments after the Presentation of the Annual Report. Questions and comments to the Board of Directors and/or Management may be sent in advance (or may be written in the ballot/proxy) by email to stockholders@topfrontier.com.ph. Questions which were not answered during the meeting shall be forwarded to the Office of the Corporate Secretary for appropriate response.

d. The requirements and procedure for the nomination for election to the Board, the pre-screening and evaluation of the qualifications of the nominees, and the voting procedure for all items in the Agenda (including the election of the members of the Board), are set out in the Definitive Information Statement.

e. Stockholders whose shares are lodged with brokers are requested to directly contact their respective brokers for guidance on their participation in the 2024 Annual Stockholders’ Meeting.

Should you have questions or requests for clarification on the procedure for the 2024 Annual Stockholders’ Meeting, please email them to stockholders@topfrontier.com.ph.

(Original Signed)
Virgilio S. Jacinto
Corporate Secretary and
Compliance Officer

 

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Dads: stepping out in style

IF YOU’RE going out with dad on Father’s Day, we have a few cheats so he could step out in style.

To ensure Father’s Day is truly memorable, Marks & Spencer  (M&S) is offering a helping hand in selecting the perfect gifts. Let your father figure step into style on his special day with easy iron shirts that will be their next favorite go-to tops for dinner or a trip. Surprise him with a weekender bag, Sun Smart UPF50+ sunglasses, Sun Smart UPF50+ baseball cap and some fun pajamas which are great for this season’s activities. Explore more from the latest Marks & Spencer summer collection with dad and gift him a scuff-resistant fabric crossbody bag for casual outings. Marks & Spencer has 20 stores around the country.

If you’re going out of town, upgrade Dad’s old luggage with the sleek and super lightweight Samsonite Lite-Box ALU x Hugo Boss 55/20. Its ultra-durable graphite black aluminum shell ensures extra protection for his belongings, while its smooth-rolling double-wheel design makes it easier for Dad to wheel around his luggage. The soft interior with BOSS branding lets Dad travel in style.

For more rugged adventures, there is the American Tourister Kamden II 2.0 Backpack 4. It is lightweight and has plenty of space for organizing essentials — from travel documents and his camera to his water bottle. The straps also have a non-slip grip texture and a Tractum Flex Suspension feature. There’s also the High Sierra Access 3.0 Eco Backpack, with a rain cover, water-repellent fabric, padded Airflow back panel, and adjustable waist strap. It has plenty of large compartments and is eco-friendly as it’s made from recycled PET bottles using Recyclex material technology, a plus for a planet-conscious dad.

Get dad up and running with sporty selections from Jack Nicklaus, particularly the breathable, moisture-wicking Regatta Stripe Polo, then top that off with the Champion Cotton Twill Hat, in black, white, or green.

Meanwhile, dad might like to see a good mug in the mirror (his). Upgrade his manual razor with the VS Sassoon Fresh-Clean Shaver S1. This modern upgrade delivers a clean, comfortable shave with its 3D smart-touch floating heads, dual-ring cutter, and pop-up trimmer not to mention the quick USB charging. For a sharp ’do, why not the BaByliss Precision Cut Hair Clipper or BaByliss Powerlight Hair Clipper? These advanced clippers can be used cordless and have 13 cutting lengths (for the Precision Cut hair Clipper) and 26 cutting lengths (for the Powerlight Hair Clipper).

Finally, no man can resist a good fragrance. Guess Uomo Acqua Eau de Toilette has notes of lemon and sea moss that evoke the ocean air, while a woody base adds a touch of sophistication. We’ve gone ga-ga over Maison Margiela Replica’s Sailing Day Eau de Toilette has notes of aquatic accord, red seaweed, iris absolute, and rose essence. For something definitely luxurious, Bond No. 9 FiDi Eau de Parfum is made of a blend of peppery notes with citrus, spice, and tonka bean, exuding a spicy gourmand scent.

MREIT shares inch up on share-swap deal

MREIT, Inc. emerged as one of the most actively traded stocks last week following the property-for-share swap deal with Megaworld Corp.

A total of 81.77 million MREIT shares worth P1.01 billion were traded from June 3 to 7, data from the Philippine Stock Exchange (PSE) showed. MREIT was the sixth actively traded stock last week.

The real estate investment trust (REIT) arm of Megaworld Corp. closed at P12.58 per share, picked up slightly by 0.2% from May 31’s closing price of P12.56 apiece. Since the first trading day of the year, the stock’s price has gone up by 2.3%.

“This block sale was not a surprise at all as MREIT has been quite transparent about it plans to hit 500,000 square meters (sq.m.) total gross leasable area (GLA) by the end of 2024. Despite this though, it sprinkled a bit of temporary optimism to investors as the asset infusion is expected to increase the overall cash flow of MREIT, thereby increasing its distributable income,” Jemimah Ryla R. Alfonso, equity analyst at Regina Capital Development Corp. said in an e-mail.

Although the deal did spark a wave of temporary optimism, the enthusiasm faded by the end of the week. Ms. Alfonso said that this might be because the move had already been anticipated.

Last week, Tan-led property developer Megaworld sold 79.7-million MREIT common shares at an average sale price of P12.3001 per share, equivalent to P980.32 million before the deduction for fees and taxes, said in a PSE disclosure. This is in line with the company’s fundraising efforts.

For the January-to-March period, MREIT generated P1.08 billion in revenues. Meanwhile, the company’s net profit stood at P733.13 million, 37.2% increase from P730.42-million growth in the same period last year.

“Based on our forecast, we see the infusion to add P3 billion in MREIT’s revenues,” added Ms. Alfonso. We see MREIT’s full year’s top line to reach P6 billion with the newly infused properties,” said Ms. Alfonso.

For 2023, MREIT recorded a 13% increase in its distributable net income to P2.8 billion from P2.5 billion in 2022 due to higher revenues.

The company saw a 14% increase in revenues to P4.2 billion, amid full-year contribution of four additional Grade-A office towers from January 2023, as well as steady rental escalations among current tenants, it said in a disclosure.

Last year, MREIT, Inc. signed a memorandum of understanding with its sponsor for the possible acquisition of seven offices to the portfolio of the real estate investment trust.

The assets have a total gross leasable area (GLA) of 150,500 sq.m. Once completed, MREIT’s portfolio will increase to 475,500 sq.m., 46% higher from its current 325,000 sq.m., on track to its total GLA to 500,000 sq.m. target of assets by end-2024.

MREIT’s portfolio covers 18 office properties to date. These are 1800 Eastwood Ave., 1880 Eastwood Ave., and E-Commerce Plaza in Eastwood City; One World Square, Two World Square, Three World Square, 8/10 Upper McKinley, 18/20 Upper McKinley, and World Finance Plaza in McKinley Hill.

“The barrier that we are seeing is at P13.12 per share, while the stronghold of the stock is at P12.50 per share,” said Ms. Alfonso. — Lourdes O. Pilar

Big banks’ asset and loan growth rises in Q1

THE COMBINED ASSETS of the Philippines’ biggest lenders rose in the first quarter, fueled by increasing confidence in the economy’s prospects. Read the full story.

Big banks’ asset and loan growth rises in Q1

PSEi member stocks performed — June 7, 2024

Here’s a quick glance at how PSEi stocks fared on Friday, June 7, 2024.

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