Extended bargain-hunting lifts Philippine shares

June 3, 2024 | 9:00 pm

PSE-building — The lobby of the Philippine Stock Exchange in Taguig City, Sept. 30, 2020. — REUTERS

PHILIPPINE SHARES rose on Monday, with bargain-hunting providing a lift despite data showing a slowdown in Philippine manufacturing activity in May.

The 30-member Philippine Stock Exchange index (PSEi) climbed by 0.58% or 37.64 points to finish at 6,470.74 on Monday, while the broader all shares index improved by 0.2% or 7.18 points to end at 3,471.05.

“The local bourse gained… as investors continued to hunt for bargains following last week’s market decline near the 6,400 support level,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

The PSEi last week dropped for four straight sessions, registering its worst close for the year so far at 6,371.75 on Thursday before rebounding to 6,433.10 on Friday.

“Overseas, China’s strong May factory activity, which expanded at 51.7, its fastest pace in nearly two years and beat estimates, lifted the sentiment in the region, including the Philippines,” Ms. Alviar added.

Asian share markets rallied on Monday, as investors looked forward to an interest rate cut in Europe and quite possibly Canada as the next step in global policy easing, though sticky inflation threatens to make the process a drawn out affair, Reuters reported.

There was also better news from China as the private Caixin survey showed a pick-up in its main factory index to a two-year top of 51.7 in May, from 51.4 in April.

All of which helped MSCI’s broadest index of Asia-Pacific shares outside Japan bounce 1.4%, having slid 2.5% last week. Chinese blue chips added 0.3%.

“The local bourse opened the week positively despite a slight dip in the S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) for May, which fell to 51.9 from 52.2 in April,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message. A PMI reading above 50 denotes better operating conditions than the preceding month, while a reading below 50 shows a deterioration.

“Investors now await the Philippine consumer price index release on June 5,” he said.

Sectoral indices were mixed. Financials went up by 3.18% or 61.38 points to 1,986.23; property increased by 2.05% or 49.34 points to 2,452.19; and mining and oil rose by 1.03% or 95.36 points to 9,336.50.

Meanwhile, services dropped by 1.6% or 31.85 points to 1,954.78; holding firms went down by 0.87% or 50.49 points to 5,704.04; and industrials fell by 0.2% or 18.91 points to 9,119.90.

“Among the index members, Metropolitan Bank & Trust Co. was at the top, surging by 6.2%, following its sharp decline last week. Meanwhile, PLDT Inc. lost the most by 4.73% as investors took some gains from last week,” Ms. Alviar said.

Value turnover decreased to P6.78 billion with 939.03 million shares changing hands from the P22.72 billion and 1.22 billion issues traded on Friday.

Decliners outnumbered advancers, 103 versus 90, while 45 issues closed unchanged.

Net foreign selling went down to P571.39 million on Monday from P5.23 billion on Friday. — R.M.D. Ochave with Reuters

Saso wins US Open

June 3, 2024 | 8:37 pm

Then for the Philippines, now for Japan

YUKA SASO has brought golfing glory to two different nations.

In 2021, when she won her first major title, it marked the first time a woman from the Philippines won the US Women’s Open. Three years later, Ms. Saso switched her sporting nationality to Japan — she has one parent from each country — and on Sunday became the first player flying the Japanese flag to win the championship.

Ms. Saso shot a 2-under 68 in her final round to capture her second US Women’s Open on Sunday at Lancaster, Pennsylvania Country Club. “I think winning in 2021, I represented the Philippines (and) I feel like I was able to give back to my mom,” Ms. Saso said at her trophy presentation. “This year, I was able to represent Japan, and I think I was able to give back to my dad. I’m very happy that I was able to do it.”

Ms. Saso was one of just two players to finish the week under par. She started the day three off the pace but used four birdies in a five-hole stretch on the back nine to separate from the pack and shoot 4-under 276 for a three-stroke victory. Ms. Saso, 22, experienced a three-year drought of wins of any kind, major or not, since her first US Women’s Open.

“I think it just makes it special because after a long wait, and I wasn’t expecting to win the US Women’s Open, every time I — last time, too, I wasn’t expecting it, and this time, too, I wasn’t expecting it,” Ms. Saso said. “I think that’s why it made me a bit emotional.

“Winning just makes you look back on all the things that your family and your team and my sponsors, they supported me throughout good or bad.”

The three 54-hole co-leaders were Minjee Lee of Australia, Andrea Lee and Wichanee Meechai of Thailand at 5 under par. All three dropped down the leaderboard as they battled the difficult scoring conditions.

Ms. Saso swept in a 20-foot birdie putt at the second hole before her biggest hiccup, a four-putt double bogey at the par-3 sixth. She trailed Minjee Lee by two when she reached the par-3 12^th and made the first of two consecutive birdies.

After another birdie at No. 15 gave her a two-shot cushion, Ms. Saso drove the green at the 232-yard par-4 16^th and two-putted for birdie. She saved bogey from 3 1/2 feet at No. 17 before hitting a chip onto the 18^th green that finished less than 2 feet away to set up a clinching par.

“I chipped from the front yesterday, too, and I left it more than 10 feet,” Ms. Saso said, “and I just told myself, be aggressive and not to be short 10 feet, and I’m glad that I was able to do it.”

Hinako Shibuno shot a 72 on Sunday to make it a 1-2 finish for Japan, finishing the week 1 under. Andrea Lee bogeyed her final two holes to shoot 75 and fell to a tie for third at even par.

“It was tough out there,” said the 25-year-old Californian, who made a double bogey, four bogeys and one birdie Sunday. “Obviously didn’t have my best right from the start. I was pretty nervous, but yeah, just didn’t have great shots out there. I had a couple of drives that really cost me, especially the double on 4.”

Ally Ewing joined Andrea Lee in third place as she tied the round of the day with a bogey-free 66. Thailand’s Arpichaya Yubol posted 69 to take fifth at 1 over.

Ms. Meechai, who shot in the 60s for three straight days, posted a 77 to drop to 2 over and a tie for sixth with Ayaka Furue of Japan (68) and Atthaya Thitikul of Thailand (68). Minjee Lee (78) was tied for ninth at 3 over. — Reuters

Sinner, Swiatek right on schedule

June 3, 2024 | 8:37 pm

PARIS — Jannik Sinner took time to get his engine going before motoring into the French Open quarterfinals while defending champion Iga Swiatek raced through on Sunday as scheduling at the Grand Slam came under scrutiny after Novak Djokovic’s overnight marathon.

Second seed Mr. Sinner kept his hopes of taking Mr. Djokovic’s top ranking alive with a battling 2-6, 6-3, 6-2, 6-1 win over local favorite Corentin Moutet in front of partisan fans on Court Philippe Chatrier.

With Roland Garros still abuzz after an epic duel where Djokovic prevailed after the tournament’s latest finish at just past three a.m. local time, Ms. Swiatek provided a masterclass to beat Anastasia Potapova 6-0, 6-0 in 40 minutes.

American Coco Gauff was not as ruthless as her Polish rival but equally efficient as she powered past Elisabetta Cocciaretto 6-1, 6-2 in an hour before Wimbledon winner Marketa Vondrousova mowed down Serbian Olga Danilovic 6-4, 6-2.

Ons Jabeur continued her quest to win an elusive maiden Grand Slam by taking out Danish player Clara Tauson 6-4, 6-4 before breaking into a song with her fans as matches were wrapped up in double quick time.

It was a largely a similar tune on the men’s side too, as third seed Carlos Alcaraz thumped Felix Auger-Aliassime 6-3, 6-3, 6-1 to set up a rematch of his 2023 quarterfinal with Stefanos Tsitsipas, who beat Matteo Arnaldi 3-6, 7-6(4), 6-2, 6-2. “I love these kinds of matches,” Mr. Alcaraz said. “Hopefully the crowd enjoys (it) as much as I’m going to. Let’s see how it’s going to be.”

Mr. Alcaraz’s entertaining win meant the entire day session for singles on Court Philippe Chatrier was completed in exactly four hours, 29 minutes less than Mr. Djokovic needed to defeat Italian Lorenzo Musetti in a five-setter overnight.

The late finish came under criticism as Ms. Swiatek and Ms. Gauff said that Grand Slams needed a scheduling rethink.

There were more complaints on social media as fans were left twiddling their thumbs for hours before the night session, where Mr. Sinner sent the last local hope Mr. Moutet packing.

“I was always one of the players that said that we should start a little bit earlier,” Ms. Swiatek said of the Djokovic match.

“I don’t know if fans are watching these matches if they have to go to work the next day when the matches are finishing at two or three a.m.”

Organizers were forced to add a match on the main showcourt before Djokovic played due to rain delays.

“It’s a complicated thing, but for the health and safety of the players, it would be in the sport’s best interest to try to avoid those matches finishing – or starting – after a certain time,” Gauff said.

Grigor Dimitrov later showed it was never too late to break new ground, as the in-form Bulgarian 10th seed outlasted Hubert Hurkacz 7-6(5,) 6-4, 7-6(3) to reach his first quarterfinal at the French Open and complete his set of Grand Slam last eight appearances. — Reuters

Problem solved: Obiena getting new poles

June 3, 2024 | 8:37 pm

PHILIPPINE Athletics Track and Field Association of the Philippines president Terry Capistrano has procured new poles for Paris Olympics medal hopeful EJ Obiena, who has dealt with two broken poles over the past couple of weeks.

“We ordered two sets of poles to be delivered to EJ,” PATAFA secretary-general Jasper Tanhueco said.

Mr. Obiena has been a shell of himself minus his old reliable poles, finishing seventh out of eight participants in the Bauhaus-Galan Wanda Diamond League in Stockholm, Sweden after clearing just 5.70 meters on borrowed sticks.

Swedish titan Armand Duplantis ruled the meet with six meters flat while American Sam Kendricks and KC Lightfoot took the silver and bronze with a 5.90m and 5.80m, respectively.

“Not my day today (Monday),” said Mr. Obiena on his social media account. “5.70m here in the wonderful @bauhausgalan. Thank you to the boys for lending me some sticks to jump on. Greatly appreciate it gentlemen.” “Thank you @bauhausgalan for having me. Hope to be back here again and jump a little bit higher,” he added.

He first broke his pole in the Ostrava Golden Spike in the Czech Republic where he also ended up seventh as well as the Oslo Diamond League in Norway where he went home with a silver, both on borrowed sticks.

But the poles are coming.

And PATAFA hopes this would solve whatever problems Mr. Obiena has — with his pole. — Joey Villar

Retro look for PHL Cup title series

June 3, 2024 | 8:37 pm

A CHAMPION that’s been there, done that against a challenger hungry for its PBA milestone. An offensive juggernaut versus a defensive machine. A “retro” duel of teams from the old MICAA days.

Welcome to the PBA Season 48 Philippine Cup finals between San Miguel Beer (SMB) and Meralco, basketball franchises that have been around for over half a century.

“Alam namin magiging exciting ang darating na series,” SMB giant June Mar Fajardo said ahead of the Beermen’s title defense against first-time All-Filipino finalist Meralco Bolts.

Key players of San Miguel and Meralco, their respective coaches Jorge Gallent and Luigi Trillo and governors Robert Non and Bill Pamintuan and PBA commissioner Willie Marcial attended a presscon presented by Bingo Plus on Monday to talk about the explosive best-of-seven series that kicks off tomorrow.

Bolts star Chris Newsome can’t express enough how honored they are to play their maiden All-Filipino final and gun for franchise history against the league’s winningest club with 29 championships at that.

“We’ve always said for us to get a championship, we have to compete against the best and that team (SMB) has proved they’re the best for quite some time,” said Newsome, who hopes to finally hoist the trophy after four previous failed bids in import-flavored conferences. “For us, it’s an honor to be here and we’re just excited to compete against the best.”

The difference in orientation between the protagonists is quite obvious.

SMB’s firepower built around top dog Fajardo, CJ Perez, Don Trollano, Marcio Lassiter and Jericho Cruz is famously scoring 107.4 points a game. Meralco’s shot-stopping unit led by Chris Newsome, Cliff Hodge and Raymond Almazan prides itself in limiting opponents to 86.95 markers.

But that doesn’t mean the premier scorer can’t defend. Or the leading defender can’t put the ball to the hoops..

“Sobrang galing nila as a team in playing defense. Sa amin naman offense, pero hindi alam ng ilan, sobrang low-key lang, we’re also defending well as a unit,” said Cruz.

“We know it’s not only defense. Offense is key. These guys beat Ginebra because they shot the ball better. When it mattered, these guys hit the shots. So for us it’s both ends,” noted Trillo.

The hunger factor may appear stronger on a still title-less Meralco. But San Miguel is also craving for gold with a sweep of Season 48 to complement its triumph in the season-opening Commissioner’s Cup on the line.

“This Meralco team is hungry so we also have to be hungry,” said Gallent, hunting for his second plum at the helm.

Notes: San Miguel vet Chris Ross is going full-circle in the tiff with Meralco. Ross recalled suiting up for the Bolts upon their PBA entry in 2010. “It’s cool to be able to play in Meralco’s first game and now I’ll play against them in their first game in the Philippine Cup finals,” Ross said. “Just an odd feeling. Meralco gave me a chance to show I could play in the PBA. I’m proud they’re able to reach this. I’m happy where I am now and I’m ready to compete against them.” — Olmin Leyba

Fight off as Tyson’s ulcer flares up

June 3, 2024 | 8:36 pm

Tyson-Paul — MIKE TYSON (LEFT) AND JAKE PAUL (RIGHT) — SIPA USA/ANTHONY BEHAR/REREUTERS

MIKE TYSON and Jake Paul’s hotly-anticipated fight is being pushed back from its July 20 date due to the former heavyweight champion’s recent ulcer flare up, promoters said on Friday.

Medical professionals recommended Mr. Tyson, 57, do minimal light training over the next few weeks as he recovers before returning to full training with no limitations, Mr. Paul’s Most Valuable Promotions said in a statement.

The fight between the Americans will be rescheduled for later this year at the same venue, the 80,000-seat AT&T Stadium in Arlington, Texas, home of the Dallas Cowboys.

“I want to thank my fans around the world for their support and understanding during this time,” Mr. Tyson said in a statement.

“Unfortunately, due to my ulcer flare-up, I have been advised by my doctor to lighten my training for a few weeks to rest and recover. — Reuters

Reese fined for snubbing media

June 3, 2024 | 8:35 pm

THE WOMEN’S National Basketball Association (WNBA) fined rookie Angel Reese of the Chicago Sky $1,000 on Sunday after she didn’t make herself available for interviews following Saturday’s one-point loss to the Indiana Fever.

The league also fined the organization $5,000 for its failure to make sure the players didn’t violate WNBA media policies. The Fever defeated the Sky 71-70 in Indianapolis in a game that saw Fever rookie Caitlin Clark pushed to the floor by Chicago’s Chennedy Carter as Ms. Clark awaited an inbounds pass.

It reportedly followed trash talk by Ms. Clark on the Fever’s previous possession, and after Ms. Carter drained a jumper with 15.1 seconds left in the third quarter, replays showed her walk toward Ms. Clark, yell out an insult and then use her shoulder to send Ms. Clark to the floor. — Reuters

Street party for Real Madrid fans

June 3, 2024 | 8:35 pm

TENS of thousands of Real Madrid fans celebrated their club’s 15^th European Cup title on Sunday in the Spanish capital’s downtown area, escorting the team’s open-top bus and flocking to the city’s landmarks to get closer to the players.

Real Madrid beat Borussia Dortmund 2-0 at London’s Wembley Stadium in Saturday’s Champions League final after a late surge in a game whose first hour was mostly dominated by the German club.

“If you don’t kill Madrid, it will kill you,” Real Madrid supporter Diego de la Cruz told Reuters.

Since Saturday afternoon, white jerseys could be spotted in almost every corner of the city.

After the final whistle, cheering crowds took to the streets and sang all the way to the Cibeles fountain, where the players traditionally celebrate their triumphs with supporters. After a long night of celebrations, the team arrived in Madrid early on Sunday. — Reuters

SSS confident in REIT outlook, considering raising investment

June 3, 2024 | 8:28 pm

THE Social Security System (SSS) said it is confident about the outlook for its investments in real estate investment trusts (REITs), citing the instruments’ high yields.

SSS President and Chief Executive Officer Rolando L. Macasaet said in a statement on Monday that the SSS is bullish about the P6 billion it invested in nearly all the REITs currently available in the Philippines.

He added that more than 75% of the REIT portfolio was purchased this year with yields at around 8%.

The pension fund’s view on REITs is based on expectations the Bangko Sentral ng Pilipinas will cut rates in the second half of the year and what it perceives to be “increasingly favorable market conditions.”

“This positive outlook sets the stage for potentially higher returns on SSS investments,” SSS added.

SSS currently invests 5% of its equity funds in REITs and may further increase the allocation depending on opportunities, SSS Investments Sector Concurrent Acting Head Ernesto D. Francisco, Jr., said.

“REITs are a fantastic investment structure for pension funds like SSS because 90% of the lease income is mandatorily distributed. The REIT sector also greatly contributes to economic development since REIT players must reinvest within one year,” he added.

He expects REITs to be among the top contributors to the fund’s investment income this year because their yields exceed prevailing benchmark rates.

SSS will continue investing in REITs in the coming years as it looks to leverage the industry’s steady rental income and growth.

“The more robust and diversified the cash flow of the REIT assets, the more we will invest in them,” Mr. Francisco said, adding that REIT companies are injecting more quality assets into their portfolios.

“Consider Singapore, where 20%, or six out of 30, of the Straits Times Index component are REITs. The absence of REITs in the Philippine Stock Exchange Composite Index presents a significant growth opportunity. Singapore’s vibrant individual investor base, a key growth driver of their REITs, serves as an inspiring model for us,” he said.

SSS reported net income growth of 58% to a record P83.13 billion in 2023 due to mandatory contribution hikes and an increase in members. — Aaron Michael C. Sy

Rains to curb SEA nickel output, with consequences for RE adoption, says IEA

June 3, 2024 | 8:28 pm

A THIRD of Southeast Asia’s (SEA) nickel mines are expected to experience heavier rainfall in the coming years, with the resulting drop in production possibly delaying the global transition to renewables, the International Energy Agency (IEA) said.

At the Asian Development Bank (ADB) Asia Clean Energy Forum, Jinsun Lim, IEA Energy and Environment Policy Analyst, said: “Southeast Asia is delivering a dominant role in nickel supply today… However, we are observing that escalating risks of floods due to heavy rainfall could be long-term threats (to nickel production).”

One-third of nickel mines in Southeast Asia are likely to see a more than 10% increase in heavy rainfall by the end of the century, Ms. Lim said.

“If climate change is not mitigated in time, in a high-emission scenario, almost all nickel mines in the region will see over a 10% increase (in rainfall) or more,” she said.

Deemed a crucial energy transition mineral, nickel is a key component of solar photovoltaics (PV) and electric vehicle batteries.

The Philippines and Indonesia account for two-thirds of global nickel output, Ms. Lim said.

Global demand for nickel is expected to increase in the coming years as countries rush to limit global warming to 1.5°C under the Paris Agreement.

The Philippines hopes to increase the share of renewable energy (RE) in its power mix to 35% by 2030 and 50% by 2040.

Renewables currently account for 22% of the Philippine energy mix.

Extreme heat will also reduce the capacity of solar panels, resulting in lower solar energy production, Ms. Lim said.

“Higher temperature leads to a lower voltage and less solar power generation, as most solar PVs work best in cool and sunny weather of around 25°,” she said.

Under a high-emission scenario, around two-thirds of solar PVs would see more than 20 days of maximum temperature of about 35°, according to IEA.

Ms. Lim also noted that the Philippines remains highly vulnerable to rising sea levels, affecting more than half of the population living in coastal areas.

Around 60% of Southeast Asia’s gross domestic product is generated by coastal locations, with more than a quarter of the region’s population living along the coastal, she added. — Beatriz Marie D. Cruz

PHL metal production may be dampened by weak global prices

June 3, 2024 | 8:28 pm

WEAK ORE prices are expected to weigh on the value of the Philippines’ metals production, analysts said.

“We can expect this to continue… in the near to medium term,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

In a report, the Mines and Geosciences Bureau (MGB) said that the value of metallic mineral production dropped 12.8% during the first quarter.

The decline was mainly attributed to metal price declines and the slowdown in mine production.

The MGB said the value of metals fell to P51.8 billion from P59.4 billion a year earlier.

“The (first-quarter) production suggests that a challenging trend that may persist. The persistent low nickel prices, coupled with adverse weather conditions impacting production, are significant factors,” Mr. Limlingan added.

The value of nickel production declined 36% to P7.63 billion from a year earlier. Ore production fell 16.6% to 3.81 million dry metric tons.

Average nickel prices during the quarter dropped to $7.53 per pound from $11.78 per pound a year earlier.

“Given the current global economic uncertainty and potential oversupply in the market, it is probable that metal prices, particularly for nickel, will remain under pressure throughout the year,” he added.

Nickel and other nickel by-products made up 33.78% of the total value of production at P17.5 billion.

Michael T. Toledo, chairman of the Chamber of Mines in the Philippines (CoMP) said that a steady limonite market and increasing interest from Indonesian smelters could act as a tailwind for nickel.

“The Philippines also has the opportunity to fill in the gap caused by tensions in New Caledonia. Offer prices have improved and we have reason to be optimistic that these developments will translate into better transaction prices as well,” he said in a Viber message.

Global Ferronickel Holdings, Inc. President Dante R. Bravo said nickel ore prices may rise slightly during the second half of the year.

“We’re hopeful the nickel ore price will go up a little bit in the second half this year as we see the Chinese economy recovering very well and since the cooling off in (electric vehicle) sales seems to be temporary,” he said in a Viber message.

The Chamber of Automotive Manufacturers of the Philippines, Inc. said that it is expecting higher EV sales this year due to the 0% tariff treatment of imported hybrid EVs and plug-in hybrid EVs.

Gold production fell 14% to 7,178 kilograms. Its value dropped 3.55% to P26.95 billion. Gold accounted for 52.01% of the value of metals produced.

“Gold prices, which have risen owing to increasing demand from central banks worldwide, will still be largely affected by global geopolitics and the US response to inflationary pressures. Nonetheless, the long-term prospects of gold as an investment and store of value are very positive,” CoMP’s Mr. Toledo said.

The average price of gold increased to $2,070.05 per troy ounce from $1,889.05 a year earlier.

The MGB said that gold prices are expected to remain “upbeat” over the rest of the year amid the ongoing conflicts in the Middle East.

Additionally, Mr. Toledo said that copper demand may strengthen this year due to the global shift to green energy and limited supply.

“No new mining projects will come on-stream in the next few years. This would likely result in higher copper prices,” he added.

The estimated value of Philippine copper output decreased 3% year on year to P6.3 billion. Copper prices averaged $3.83 per pound during the period.

Production volume rose 4% to 67,582 dry metric tons. — Adrian H. Halili

House panel approves bill granting OFWs discount on remittance fees

June 3, 2024 | 8:27 pm

A HOUSE of Representatives committee last month approved a consolidated bill seeking to grant overseas Filipino workers (OFWs) a 50% discount on remittance fees imposed by banks.

The bill also prohibits the raising of remittance fees without prior notice to the Bangko Sentral ng Pilipinas, the Department of Finance, and the Department of Migrant Workers.

“Recognizing the significant contribution of OFWs to the national economy through their foreign exchange remittances, the State shall adopt measures to protect the hard-earned money they remit home against usurious interest rates and exorbitant fees,” according to the unnumbered substitute bill.

Remittances from OFWs rose 2.6% to $3.05 billion in March from $2.97 billion a year earlier.

Banks can then claim the discounted remittance fee as a tax deduction.

“Bank and non-bank financial intermediaries providing discounts on remittance fees may claim the discounts granted as tax deductions based on the cost of service rendered to OFWs to be treated as ordinary and necessary expense deductible from the gross income of the intermediary,” according to Section 5 of the unnumbered substitute bill.

The House Committee on Overseas Workers Affairs also approved a proposed measure requiring OFWs to attend financial literacy seminars.

The literacy seminar would discuss consumer protection and responsible borrowing, among others.

The bill requires OFWs to undergo a pre-departure orientation seminar on financial literacy. They will also need to sit through a financial education seminar “within a reasonable time upon their arrival in their respective countries of destination.”

Families of OFWs will also be provided with free online financial literacy seminars. — Kenneth Christiane L. Basilio