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ERC says retail electricity prices fell in Q1

THE ENERGY REGULATORY Commission (ERC) on Thursday said the average price in the retail electricity market decreased in the first quarter (Q1), leading to increased competition in pricing.

The national average supply price of retail electricity suppliers (RES) in the first three months fell to P5.49 per kilowatt-hour (kWh) from P6 per kWh in the same period last year, the ERC said in a statement.

The latest figure was also lower compared to the prices from distribution utilities (DUs) in 2023, which had an average generation charge of P6.7460 per kWh for captive customers at the national level.

Under the Electric Power Industry Reform Act of 2001, qualified contestable customers, or end users consuming at least 500 kilowatts a month, may choose their own power suppliers under the Retail Competition and Open Access scheme.

End users are given the opportunity to participate — on a voluntary basis — in the Competitive Retail Electricity Market (CREM), allowing them to choose from an array of power suppliers that offer cheaper electricity. 

Captive customers are those served by DUs in the areas where they are based.

The lower average price in the CREM drove the increase in the number of consumers exercising their right to choose their own suppliers.

As of March, the total number of registered CREM customers increased to 1,999 from 1,918 in 2022, while 330 customers opted for the Green Energy Option.

About 60% of the 3,329 customers are being served under CREM, while the remaining 40% of those eligible are yet to choose their own suppliers and remain under their respective DUs.

“We are optimistic that the retail market will continue to grow as the Commission addresses the issues on market concentration with continuous and more diligent monitoring to prevent and penalize anti-competitive behaviors,” ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said.

Ms. Dimalanta also said that the ERC has received several applications for RES licenses from non-affiliated entities.

“This is a clear sign of increasing competition in the retail market which should only lead to better choices for our consumers,” she said.

The ERC has issued licenses to 48 RES and 29 local RES, which are in-house RES of DUs. Of these, 32 RES and two local RES have active contracts with CREM customers.

The ERC said that the Manila Electric Co. Group remained the largest group in terms of the total number of customers, supplying 678 out of the total 1,999 contestable customers.

Meanwhile, the Aboitiz Group remained the largest affiliate group in terms of demand served, supplying 30% of the 4,208 megawatts actual demand. — Sheldeen Joy
Talavera

Anti-money laundering and countering terrorism financing

What is money laundering? In simple terms, it is the process of using money obtained from criminal activity without its origin being detected. It’s like watching “black dirty” money turn into “white clean” money to look legal and avoid confiscation and conviction. Terrorist financing, on the other hand, is the act of raising money to provide financial support to terrorists. It doesn’t matter whether the source is legitimate or not. Money launderers and terrorism financiers take advantage of countries with weak controls. This can result in reduced investments and international capital flows, thereby weakening the economy.

It was timely that the Bankers Institute of the Philippines Inc. (BAIPHIL), in collaboration with the Bangko Sentral ng Pilipinas’ Anti-Money Laundering (AML) Specialist Group-Financial System Integrity Department, conducted a webinar on anti-money laundering and countering terrorism and proliferation financing (AML/CTPF) on June 18. It was attended by 388 directors and senior officers of various financial institutions. A good number of PNB directors and senior management attended. The speakers were Atty. Elmore O. Capule, BSP senior assistant governor and general counsel; Atty. Ruel Bumatay, deputy director of the BSP’s AML specialist group; and Atty. Rojie G. Dancel, acting deputy director of the BSP’s AML specialist group.

The webinar was designed from the BSP’s perspective and role as regulator, covering BSP’s regulations on AML. It emphasized the need to have a strong AML/CTPF culture from the board level down to the lowest level of personnel. The webinar covered the role of the board of directors and senior officers in ensuring that the provisions of the Money Laundering and Terrorist Financing Prevention Program (MTPP) are strictly implemented, that there is good governance and that the necessary controls are in place. 

Why do we need to combat money laundering? Atty. Capule said it is a serious threat to the integrity of financial institutions and the legitimate economy. It can lead to more serious crimes such as drugs, human trafficking, fraud, graft, and corruption. Meanwhile, terrorism cultivates a climate of fear and causes loss of life and properties. Being involved in terrorist financing can result in the loss of reputation, status, and donor confidence. The proliferation financing of weapons of mass destruction is also a serious threat facing the international community, as it is challenging to detect.

Atty. Capule also identified the AML/CTPF regulators, namely, the BSP for banks, savings and loan associations and pawnshops, among others; the Insurance Commission for insurance companies and mutual benefit associations; the Securities and Exchange Commission for securities and investment, financing, and lending companies; and the Philippine Amusement and Gaming Corp. for casinos.

He expounded on the role of the BSP in AML/CTPF supervision as well as the BSP’s AML regulations. He said the risk management framework plays a critical role. The usual sources of risks are negligence, unethical employees, inadequate training, lack of oversight and lack of check and balance. The four elements of sound risk management practices are the board of directors (BOD) and senior management, oversight MTPP, internal controls, and a self-assessment system. The BOD approves policies, sets an institution’s risk profile and is ultimately responsible for AML/CTPF compliance. Senior management, specifically the compliance office, ensure the effective implementation of the board-approved MTPP. The MTPP should be in writing, approved by the BOD and updated regularly. The board should be proactive and require regular monitoring. On internal controls, onboarding customer due diligence and ongoing monitoring of customer accounts and transactions, continuing education and training are important. Meanwhile, self-assessment systems, which are done by audit and compliance, should ensure completeness of scope and do a deep dive into root cause analysis. These should also safeguard against inadequate manpower or the inability to do compliance testing, and alert management, among others

The Philippines is currently in the Financial Action Task Force’s (FATF) gray list, which means the country hasn’t met all the standards for fighting money laundering and terrorist financing but there is a commitment to resolve  strategic deficiencies within specific timeframes, subject to increased monitoring. Hopefully, the Philippines graduates from the FATF’s gray list soon,

Former BAIPHIL President and now PNB Director Belitte Papa said the webinar helped officials understand the similarities and differences of money laundering, terrorist financing and proliferation financing activities. The tips on how to avoid exceptions or BSP findings and how to work on a higher AML rating were also useful.

Thanks to BAIPHIL and the BSP for keeping banks well informed and vigilant!

The views expressed herein are the author’s own and do not necessarily reflect the opinion of her office as well as FINEX.

 

Flor G. Tarriela was former BAIPHIL president and PNB chairman. She now serves as PNB board advisor. A former undersecretary of Finance, she is lead independent director of Nickel Asia Corp., director of LTG, Inc. and FINEX. A gardener and an environmentalist, she founded Flor’s Garden in Antipolo, now an events destination.

How expensive is Manila for ‘living well’ in 2024?

Manila edged down a spot to 21st out of 25 cities in the 2024 edition of the  Julius Baer Lifestyle Index, which analyzes the cost of a basket of goods and services representative of “living well.” Among the 10 Asia-Pacific cities included in the report, the Philippine capital emerged the ninth-most expensive city, just ahead of Tokyo.

How expensive is Manila for 'living well' in 2024?

Sustainable Fashion: How Philippine brands are leading the change

BW FILE PHOTO

The global fashion industry is seeing a significant shift towards sustainability. More brands are increasingly adopting sustainable fashion through eco-friendly practices to minimize environmental impact and pro-mote ethical design and production.

Sustainable fashion involves adopting practices that reduce the environmental impact and promote ethical standards throughout the lifecycle of clothing. From sourcing materials to production processes and consumer habits, some key practices are currently driving the movement towards a more sustainable fashion industry.

One such practice is the ethical sourcing of materials. We are seeing fashion houses that are now using materials such as organic cotton, hemp, and bamboo, which are grown without harmful pesticides and chemicals. Forward-looking designers are also becoming adept at using recycled materials, where they incorporate recycled fibers like recycled polyester or repurposed textiles from old garments and industrial waste. Some even make use of biodegradable fabrics.

The fashion industry has also started to use materials that break down naturally without releasing harmful substances, such as Tencel and organic linen.

Another sustainable practice is the adoption of eco-friendly production processes such as the use of water-saving technologies in dyeing and finishing processes; the use of non-toxic dyes where designers use natural or low-impact dyes that do not release harmful chemicals into the environment; and the use of energy efficient power sources such as renewable energy sources and energy-efficient machinery to reduce carbon emissions during production.

The global fashion industry has also started to implement fair trade and ethical labor practices such as the adoption of fair wages and healthy working conditions to ensure that workers in the supply chain receive fair wages and work in safe condi-tions. Moreover, the industry is also promoting more transparent community support by engaging and supporting local communities through the provision of fair-trade opportunities and social investments for community development.

On top of these, the fashion industry is becoming more responsible in managing waste through up upcycling and recycling — transforming waste materials and old garments into new products to extend the lifecycle of tex-tiles and through a scheme called “circular fashion” that encourages the return, reuse, and recycling of garments through take-back programs and resale platforms.

More importantly, the industry has had some successes in promoting and adopting sustainable packaging through minimal packaging initiatives and the use of reusable, recyclable, and biodegradable packaging materials for reuse by consumers, such as cloth bags or durable boxes.

EXAMPLES IN THE PHILIPPINES
The Philippine fashion industry has also started to become more sustainable — a transformation that is largely driven by a combination of cultural heritage, innovative design, and growing consumer demand for re-sponsible fashion.

Among those leading the way is industry giant SM Retail, the country’s biggest retail chain, which has implemented several initiatives to support sustainability. As the largest retail chain in the Philippines, it has the capacity to influence consumer behavior and industry standards on a significant scale.

It has launched its green retail initiative called SM Green Finds, which essentially promotes the green products within the department store. Within SM Fashion for example, there’s a sustainable line of denim branded Code Blue. Con-ventional textile production often involves harmful chemicals, excessive water usage, and pollution; Code Blue denim is made of eco-friendly materials and has undergone production methods that use new technology emitting fewer greenhouse gases, conserving water and energy in the process. These initiatives not only reduce the environmental footprint of their products but also raise awareness among consumers about the importance of sustainable choices.

In addition to promoting sustainable materials, SM Retail is actively involved in circular fashion initiatives. The company, through SM Store, has implemented a circularity drive that utilizes used tarps from the store which are re-purposed or upcycled into stylish bags and pouches. This not only helps to reduce waste but also educates consumers on the benefits of a circular economy.

One of the most notable trends in sustainable fashion in the Philippines is the adoption of upcycling to combat the issue of textile waste. Several Filipino designers and brands are turning to upcycling — a practice that in-volves transforming discarded materials into new, high-quality products, thus extending the lifecycle of textiles and reducing waste.

A leading proponent of upcycling is Rags2Riches — a brand that has gained recognition for its innovative approach to upcycling. They work with community artisans to create stylish bags and accessories from scrap fabrics. This not only reduces waste but also provides income opportunities for underprivileged communities. Another designer-artist worthy of note is Leeroy New. He has made waves in the fashion world with his use of plastic waste to create avant-garde fashion pieces. His work highlights the potential of creative reuse and encourages a shift towards more sustainable consumption patterns.

There are a growing number of Philippine brands that are committed to the use of sustainable materials and ethical production methods. These practices are aimed at reducing the environmental impact of fashion and en-suring fair treatment of workers. For example, Filip + Inna, a brand known for its handcrafted garments, uses sustainable materials such as organic cotton and natural dyes. They collaborate closely with local artisans, ensuring that traditional techniques are preserved and that artisans receive fair compensation for their work.

CHALLENGES AND OPPORTUNITIE
Despite the progress, the shift towards sustainable fashion in the Philippines faces several challenges. The higher cost of sustainable materials and ethical production can be a barrier for both brands and consumers. Additionally, there is a need for greater awareness and education about the long-term benefits of sustainable fashion.

However, the growing demand for eco-friendly products presents significant opportunities. As consumers become more conscious of their environmental impact, brands that prioritize sustainability are likely to gain a competitive edge.

Indeed, the sustainable fashion movement in the Philippines is gaining momentum, driven by a combination of traditional craftsmanship, innovative design, and corporate responsibility.

By embracing sustainability, the Philippine fashion industry is not only reducing its environmental footprint but also preserving cultural heritage and supporting local communities.

 

Dr. Ron F. Jabal, Apr, is the CEO of PAGEONE Group (www.pageonegroup.ph) and founder of Advocacy Partners Asia (www.advocacy.ph).

ron.jabal@pageone.ph

rfjabal@gmail.com

Hollywood workers union reaches pay, AI-use deal with top studios

NATHAN DEFIESTA-UNSPLASH

A UNION representing Hollywood film and television crew said on Tuesday it has reached a tentative three-year deal with major studios that includes agreed-on pay hikes and guardrails against the use of artificial intelligence (AI).

The International Alliance of Theatrical Stage Employees (IATSE) members, which include lighting technicians and costume designers, are to ratify the deal with the Alliance of Motion Picture and Television Producers (AMPTP), which represents Disney, Netflix, and others.

The terms of the agreement include scale-rate increases of 7%, 4%, and 3.5% over the three-year term, the union said.

On the AI front, the deal includes “language that ensures no employee is required to provide Al prompts in any manner that would result in the displacement of any covered employee.”

In late 2023, the SAG-AFTRA actors union and the studios reached a labor agreement which ended a near six-month dispute that had halted film and TV production.

That contract also provided for pay raises and streaming bonuses that union leaders said amounted to more than $1 billion over three years, and also included protection around the use of AI in filmmaking. — Reuters

How to verify if a job vacancy is real

I’m reluctant to answer a job ad as it could be a false announcement designed to test my loyalty. This happened to a good friend who was kicked out of his job. Also, many of these recruiters don’t bother to acknowledge my application, which raises my suspicion that these are fake vacancies. How do I check for the authenticity of vacancies? — Careless Whispers.

Be careful when applying for a management job as it could damage your standing with your current employer. I had a similar experience as your friend. It happened when the chief executive officer of a major pharmaceutical company immediately notified my boss of my application. The boss happened to be his former colleague at another company.

My boss told me he found out, thus leading to my falling out with the organization. Looking back, it’s really difficult to answer a job vacancy without honest-to-goodness research on the background of your prospective boss. This should be the first step in your job-hunting process.

Unless you make a serious effort, you can’t sidestep the things that could happen to you. If you are seriously looking for another job, consider looking into the hidden job market inside and outside of your industry.

It can be done by being active in professional organizations that cater to your professional interests. If you are in human resources (HR), expand your network with People Management Association of the Philippines (PMAP) by joining their committees, where you can showcase your expertise.

Also, you can volunteer to be a resource speaker on certain topics or write special articles for publication in PMAP’s newsletter. Of course, all this needs the approval of your boss who may interpret your extra-curricular activities as interfering with your work performance.

TIPS FOR VERIFYING
Verifying the authenticity of a vacancy is the first stage of your job search. Even if there’s a real job opening, it doesn’t mean you should automatically take the bait. Sometimes, they are trial balloons intended for purposes other than filling a vacancy.

If you’re gainfully employed, don’t do a reckless job search by answering all ads that may come your way. There are certain red flags that you should be aware of, such as the following:

One, the organization is using a generic e-mail account. Using free Gmail or Yahoo accounts is a dead giveaway. Not to generalize unfairly, but if you really want to play it safe, verify the identity of the advertiser’s representative on social media or other means.

Two, the advertiser is not identified in the ad. At times, a blind ad is there for good reason, such as the vacancy still being occupied by a current employee.

Three, a headhunter makes a lucrative offer. This is related to number two above. Some headhunters hide the identity of their clients for fear that a client could be snatched away by another headhunter. I also know of at least one headhunter who was requested by a long-time client to do sleuthing for them to test the loyalty of an incumbent.

Four, the HR head is secretive about some details. For instance, they will not tell you the name of your prospective boss. HR may ask you why you want to know.

One possible counter to this is to not identify yourself as an applicant. Instead, invent a non-threatening reason, like conducting a management survey. Note also that some HR people may reject your request by saying they don’t entertain phone calls or e-mail inquiries, but restrict such queries to face-to-face interaction.

Last, seek help from your network to fill in the blanks. You may be lucky enough to know someone privy to the details of the vacancy. If not, you can check the reputation of the employer on social media and elsewhere. Try Google to find leads to guide you to an intelligent decision.

BETTER SAFE THAN SORRY
The internet is the most potent job-finding tool out there. In a matter of minutes, you can find solid leads covering almost any sphere of activity that interests you, including the authenticity of job vacancies. One caveat though. Don’t expect a 100% success rate.

While the internet is useful for us, it also poses some dangers that could put you in a much more difficult situation. In the end, it might be best to play it safe and stay in your current job. Do your best and hope that sooner, rather than later, a resolution will present itself.

 

Bring Rey Elbo’s leadership program called “Superior Subordinate Supervision” to your organization. Contact him on Facebook, LinkedIn, X or e-mail elbonomics@gmail.com or via https://reyelbo.com

Araneta group: Cyberpark Tower 3 on track for 2025 opening

ARANETACITY.COM
ARANETACITY.COM

THE ARANETA group’s ACI, Inc. said it has topped off its third office building in the five-tower Cyberpark development at Araneta City in Cubao, Quezon City.

The company aims to open the P5-billion building by the first quarter of 2025,  Araneta Group Marketing Assistant Vice-President Marjorie C. Go told reporters on Thursday.

She said Cyberpark Towers 4 and 5 have not started construction and are planned within the next five years.

The expansion, she noted, is supported by Cyberpark’s proximity to Light Rail Transit 2, the Mass Rapid Transit (MRT), jeepney stops, and bus terminals.

“It’s a big factor for the office workers that their office area is something accessible or very convenient to go to,” she noted, adding the live-work-play environment due to nearby malls, Araneta Center, and New Frontier Theater.

She added that six out of the 28 floors have already been leased to the business process outsourcing company Telus.

“This milestone not only signifies the nearing completion of the latest addition to our expanding Cyberpark business district. It also represents a significant forward for Araneta City’s position as a premier business destination in the Philippines,” said Rowell L. Recinto, the Araneta group’s senior management consultant.

ACI said that the 28-level office space includes three basement parking levels and two floors of retail space on its podium.

Cyberpark 3 features a floor area of 2,500 square meters (sq.m.) per floor, with a total gross floor area of 80,000 sq.m. excluding the basement.

According to the company, amenities include a smart elevator system and 100% backup power.

The third tower is the first property in the Cyberpark development to achieve Leadership in Energy and Environmental Design (LEED) certification.

This certification program promotes sustainability from construction through to operations in commercial establishments and office buildings.

Among Cyberpark 3’s sustainability features are renewable energy solutions, double-glazed ribbon windows, rainwater collection systems, and solar panels. — A.R.A. Inosante

BPI Wealth inks partnership with COL Financial

THE WEALTH MANAGEMENT arm of Bank of the Philippine Islands (BPI) has partnered with online stockbroker COL Financial Group, Inc. to expand its product distribution channels.

Under the partnership, BPI Wealth’s unit investment trust funds (UITFs) will be available on COL Financial’s platform by next month, it said in a statement on Thursday.

“This exciting partnership underscores our commitment to doing more for Filipino investors. By collaborating with fund distributors like COL Financial, we are extending our reach to more Filipinos and making expertly-managed funds more accessible. This collaboration aligns with our mission to enhance the lives of Filipinos through investing, by providing them with a broader array of investment options to achieve their financial goals,” BPI Wealth Institutional Business Head Yvette Mari V. De Peralta was quoted as saying.

COL Financial users will have direct access to BPI Wealth’s investment funds, including equity and fixed-income funds with exposure to local and global markets.

BPI Wealth’s products cater to various risk appetites and investment goals, it said.

Investors will also be able to diversify their portfolios through BPI Wealth’s UITFs, it added.

“Our partnership with BPI Wealth marks a significant milestone for COL Financial. By offering BPI Wealth UITFs on our platform, we are enhancing the investment choices available to our clients -— therefore, enabling them to build more robust and diversified portfolios,” COL Financial President and Chief Executive Officer Conrado F. Bate said.

BPI Wealth’s assets under management currently stand at P1.22 trillion.

Its listed parent BPI saw its net income grow by 25.8% year on year in the first quarter to P15.3 billion as higher revenues offset higher provisions and expenses.

Its shares went up by P3.60 or 3.10% to end at P119.60 apiece on Thursday. — AMCS

National Government Fiscal Performance

THE NATIONAL Government’s (NG) budget deficit widened in May as spending growth outpaced revenues, the Bureau of the Treasury (BTr) said. Read the full story.

National Government Fiscal Performance

Misunderstanding an armed attack

MEMBERS of a military detachment stationed aboard the BRP Sierra Madre at the disputed Second Thomas Shoal, part of the Spratly Islands, in the West Philippine Sea, March 29, 2014. — REUTERS

On June 17, China Coast Guard personnel violently interfered with members of the Philippine Navy who were on a resupply mission to the BRP Sierra Madre, which serves as a military outpost in Ayungin Shoal. The Chi-nese managed to collide with a Philippine vessel, damaged equipment, confiscated weapons, and caused injury.

The aftermath saw a bit of tentativeness reign, with one high-ranking official bizarrely labeling Chinese actions as a mere “misunderstanding” and “an accident.” This was later corrected by Defense Secretary Gilbert Teodoro, who rightly called China’s doings as “deliberate,” “aggressive,” and an “illegal use of force.”

But would such actions constitute an “armed attack”?

More than mere semantics, the matter is actually quite significant as it determines the propriety of resorting to the Mutual Defense Treaty (MDT), as well as the right to self-defense under UN Charter Article 51.

Article 4 of the MDT provides: “Each Party recognizes that an armed attack in the Pacific area on either of the Parties would be dangerous to its own peace and safety and declares that it would act to meet the common dangers in accordance with its constitutional processes. Any such armed attack and all measures taken as a result thereof shall be immediately reported to the Security Council of the United Nations. Such measures shall be terminated when the Security Council has taken the measures necessary to restore and maintain international peace and security.”

Article 51, on the other hand, states that “nothing in the present Charter shall impair the inherent right of individual or collective self-defense if an armed attack occurs against a Member of the United Nations, until the Security Council has taken measures necessary to maintain international peace and security.”

Related to the idea of armed attack as “aggression,” which has been defined by UN General Assembly Resolution 3314 as “the use of armed force by a State against the sovereignty, territorial integrity, or political independence of another State, or in any other manner inconsistent with the Charter of the United Nations.”

So, the question now becomes: what level of violence is necessary to be classified as an “armed attack” that will trigger the right to self-defense (as well as the Mutual Defense Treaty)? This, it must be noted, is different from the question posed by — and which we will not consider here — the difference between Article 51 (i.e., “armed attack”) and the Caroline Case (i.e., the “necessity of that self-defense is instant, overwhelming, and leaving no choice of means, and no moment for deliberation”).

Accepted is the idea that economic coercion will not reach such a level. Yet, there has been a dispute as to what level of lethal force can be considered as such. In one gathering of international law experts, “armed attack” is that which “includes not only an attack against the territory of the State, including its airspace and territorial sea, but also attacks directed against emanations of the State, such as its armed forces or embassies abroad. An armed attack may also include, in certain circumstances, attacks against private citizens abroad or civil ships and airliners. An ‘armed attack’ therefore is an intentional intervention in or against another state without that state’s consent or subsequent acquiescence, which is not legally justified.”

More importantly, an armed attack “means any use of armed force, and does not need to cross some threshold of intensity. Any requirement that a use of force must attain a certain gravity and that frontier incidents, for example, are excluded is relevant only in so far as the minor nature of an attack is prima facie evidence of absence of intention to attack or honest mistake. It may also be relevant to the issues of necessity and proportionality.” (Chatham House, International Law ILP WP 05/01; Principles of International Law on the Use of Force by States in Self-Defense)

The foregoing, it is posited here, is the correct understanding of “armed attack.” Such is more realistic and reflective of the realities on the ground. It is also more in line with the principle that self-defense is an inherent right.

The International Court of Justice (ICJ) is seemingly open to this view, indicating in the Oil Platforms Case that a low threshold may be enough to effect appropriate legal self-defense measures. As the ruling puts it, the ICJ does “not exclude the possibility that the mining of a single military vessel might be sufficient to bring into play the ‘inherent right of self-defense.’” This makes more sense when one considers that cyberattacks could constitute an initiation of an armed attack.

The point is that China’s actions on June 17 in Ayungin are without doubt violative of international law. Simply put, China committed “aggression” and an “armed attack.” However, the situation doesn’t necessarily demand hostile countermeasures, definitely not armed conflict, and need not trigger the MDT’s Article 4 (at least not yet). But it definitely puts the Philippines on higher ground and therefore it should act as such.

The views expressed here are his own and not necessarily those of the institutions to which he belongs.

 

Jemy Gatdula is the dean of the Institute of Law of the University of Asia and the Pacific and is a Philippine Judicial Academy lecturer for constitutional philosophy and jurisprudence. He read international law at the University of Cambridge.

https://www.facebook.com/jigatdula/

Twitter @jemygatdula

PSEi member stocks performed — June 27, 2024

Here’s a quick glance at how PSEi stocks fared on Thursday, June 27, 2024.

Philippine shares rally, tracking Wall Street’s rise 

REUTERS

PHILIPPINE SHARES climbed for a fourth straight day on Thursday, tracking Wall Street’s overnight rise, as bargain hunting continued ahead of the central bank’s policy announcement.

The Philippine Stock Exchange index (PSEi) rose by 1.22% or 77.47 points to end at 6,390.58 on Thursday, while the broader all shares index climbed by 0.78% or 27.12 points to close at 3,477.70.

“The PSEi sustained its gains for the fourth consecutive day, driven by bargain hunters. It was just announced at market close that the Bangko Sentral ng Pilipinas (BSP) would maintain its key policy rate at 6.5% in the meantime, which was in line with the consensus expectations,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The BSP on Thursday kept its policy rate at a 17-year high of 6.5% for a sixth straight meeting, as expected by all 15 analysts in a BusinessWorld poll.

“Philippine shares edged higher as investors made bets ahead of the latest inflation data, which is set to be released on Friday with May’s PCE (personal consumption expenditures) price index. Investors hope the report will show easing pricing pressures, which could increase the likelihood that the Fed will lower interest rates later this year,” Mr. Limlingan added.

“The local market rose as investors took positive cues from Wall Street overnight amid optimistic anticipation over the US May PCE inflation report, which will be released by the end of the week,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio likewise said in a Viber message.

On Wall Street, the Dow Jones Industrial Average rose 15.64 points or 0.04% to 39,127.80; the S&P 500 gained 8.60 points or 0.16% to 5,477.90; and the Nasdaq Composite gained 87.50 points or 0.49% to 17,805.16, Reuters reported.

Investors await Friday’s release of the US PCE price index, the US Federal Reserve’s preferred inflation measure. Economists polled by Reuters expect PCE annual growth to ease to 2.6% in May.

All sectoral indices closed higher on Thursday. Financials jumped by 2.49% or 47.17 points to 1,934.55; industrials went up by 1.06% or 94.63 points to 8,977.11; property increased by 0.92% or 22.97 points to 2,504.98; holding firms climbed by 0.55% or 30.08 points to 5,501.71; services rose by 0.42% or 8.42 points to 1,986.56; and mining and oil inched up by 0.23% or 20.03 points to 8,554.89.

“Among the index members, Converge ICT Solutions, Inc. was at the top, rising 3.83% to P11.40. JG Summit Holdings, Inc. lost the most, dropping 2.59% to P26.30,” Mr. Plopenio said.

Value turnover dropped to P4.52 billion on Thursday with 508.74 million shares changing hands from the P4.96 billion with 323.63 million issues traded on Wednesday.

Decliners beat advancers, 99 versus 91, while 43 names were unchanged.

Net foreign selling stood at P96.3 million on Thursday, a reversal of the P84.58 million in net buying recorded on Wednesday. — R.M.D. Ochave with Reuters

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