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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.


Peso likely to trade sideways as market awaits Fed rate cut hints

ANGIE REYES-PEXELS

THE PESO is seen trading sideways in the coming days as the market looks ahead to the US Federal Reserve’s policy meeting this week for signals about their next move.

The local unit closed at P58.52 per dollar on Friday, strengthening by 9.1 centavos from its P58.611 finish on Thursday, Bankers Association of the Philippines data showed.

Week on week, however, the peso inched down by a centavo from its P58.51 finish on May 31.

The peso gained against the dollar on Friday amid bolstered expectations of a rate cut by the Fed within this year after a softer US jobless claims report, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The US economy created far more jobs than expected in May and annual wage growth reaccelerated, underscoring the resilience of the labor market and reducing the likelihood the Federal Reserve will be able to start rate cuts in September, Reuters reported.

Financial markets slashed the odds of a September rate cut, reducing the probability to about 53% from about 70% before the report, based on rate futures contracts, and now see roughly an even chance of two rate cuts by the end of 2024, versus about a 68% chance seen before the report.

Non-farm payrolls increased by 272,000 jobs last month, the Labor department’s Bureau of Labor Statistics said. Revisions showed 15,000 fewer jobs created in March and April combined than previously reported. Economists polled by Reuters had forecast payrolls advancing by 185,000. Estimates ranged from 120,000 to 258,000. May’s employment gains were higher than the 232,000 monthly average for the past year.

The US central bank is closely monitoring labor market conditions and economic growth to ensure it doesn’t keep rates too high for too long and overcool the economy as it tries to return inflation back to its 2% target.

Lower global crude prices also supported the peso on Friday, Mr. Ricafort added.

For this week, Mr. Ricafort said the peso could trade sideways against the greenback as the market awaits the Fed’s review, where policy makers are expected to keep rates steady at the 5.25%-5.5% range for a seventh straight time but give signals on when it will kick off its easing cycle.

The Fed’s expected pause on June 11-12 is expected to be matched by the Bangko Sentral ng Pilipinas (BSP) at its own meeting on June 27, Mr. Ricafort added.

BSP Governor Eli M. Remolona, Jr. reiterated last week that the Monetary Board could start cutting rates before the Fed despite a weaker peso recently.

He earlier said the BSP could start its easing cycle with a 25-basis-point (bp) rate cut as early as the Monetary Board’s Aug. 15 meeting and slash rates once or twice in the second semester.

The BSP kept its benchmark rate steady at a 17-year high of 6.5% at its May meeting. It raised borrowing costs by 450 bps from May 2022 to October 2023 to tame inflation.

Mr. Ricafort expects the peso to move between P58.20 to P58.70 per dollar this week. — A.M.C. Sy with Reuters

PHL shares may move sideways after US jobs data

PHILIPPINE STAR/KRIZ JOHN ROSALES

PHILIPPINE SHARES could trade sideways during this shortened trading week as investors could hunt for bargains and as the latest US jobs data affected the outlook for US Federal Reserve rate cuts.

On Friday, the bellwether Philippine Stock Exchange index (PSEi) rose by 0.13% or 8.90 points to end at 6,518.76, while the broader all shares index gained by 0.06% or 2.14 points to close at 3,491.93.

Week on week, the PSEi increased by 1.33% or 85.66 points from its 6,433.10 close on May 31.

“The local market was able to bounce back last week as investors digested our May inflation figure, which remained within the government’s target range. However, trading has been tepid, implying that many are still on the sidelines amid market uncertainties,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

Headline inflation picked up for a fourth straight month to 3.9% in May from 3.8% in April, the Philippine Statistics Authority reported on Wednesday. This was a tad lower than the 4% median estimate in a BusinessWorld poll of 16 analysts and was within the Bangko Sentral ng Pilipinas’ (BSP) 2-4% target.

For this week, the market could move sideways, Mr. Tantiangco said.

“The local market is still seen to be at attractive levels. Hence, we may still see some bargain hunting moving forward. However, downside risks remain, which are seen to make it challenging for the market to sustain momentum,” he said.

“The end of El Niño is seen as a positive development for our inflation picture as pressures on our food supply and demand for electricity are expected to ease. This in turn is seen to help the market. However, the stronger-than-expected May jobs report in the US, which dents the hopes of a rate cut by the Fed soon, may weigh on sentiment,” Mr. Tantiangco added.

The US jobs data released on Friday could “weigh on stock prices if the market assumes that the BSP will not cut ahead of the Fed, or further weaken the peso if calls for the BSP to cut ahead of the Fed strengthens,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message. “In any case, it will likely be a rough week ahead and we might find the index back below the 6,500 level or the peso weakening above P59 per dollar.”

The US economy created far more jobs than expected in May and annual wage growth reaccelerated, underscoring the resilience of the labor market and reducing the likelihood the Federal Reserve will be able to start rate cuts in September, Reuters reported.

Nonfarm payrolls increased by 272,000 jobs last month, the Labor department’s Bureau of Labor Statistics said.

Mr. Tantiangco placed the market’s support at 6,400 and resistance at 6,700 for this week.

Meanwhile, 2TradeAsia.com put the PSEi’s immediate support at 6,350 and resistance at 6,600.

Philippine financial markets are closed on June 12, Wednesday, for Independence Day. — R.M.D. Ochave with Reuters

Rice imports hit 2 million metric tons by end of May

PHILSTAR FILE PHOTO

THE PHILIPPINES imported 2.09 million metric tons (MMT) of rice at the end of May, up 30.6%, according to the Bureau of Plant Industry (BPI).

The BPI reported that rice shipments in May rose 28% to 411,689 MT.

The BPI said Vietnam remained the top supplier of rice as of the end of May, accounting for 72.7% of all imports in the year to date, or 1.52 MMT.

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

Thailand supplied 319,740.74 MT during the period, or 15.3% of the total, followed by Pakistan with 147,169.MT, or 7%.

Rounding out the top five were Myanmar and India which shipped 65,600 MT and 21,169 MT of rice, respectively.

Imports service about 20% of Philippine rice demand.

The Department of Agriculture is projecting production of palay, or unmilled rice, at 20.44 MMT this year, against 20.06 MMT last year.

The US Department of Agriculture projects Philippine rice imports of 3.9 MMT this year, downgrading its initial 4.1 MMT estimate. — Adrian H. Halili

NFA urges lifting of preventive suspensions

PHILSTAR FILE PHOTO

THE National Food Authority (NFA) called for the lifting of the preventive suspensions on NFA staff over the alleged irregular sale of rice reserves.

NFA Administrator Larry R. Lacson said that the Office of the Ombudsman said these personnel are needed to implement the agency’s programs.

“Especially those who have nothing to do with that particular transaction so that they can help. We still have many programs that must be implemented, all our manpower must be there,” he added.

In March, the Ombudsman placed 139 NFA supervisors under a six-month preventive suspension for alleged involvement in the irregular sale of rice stocks to specific traders. The order has been lifted to about 95 officials.

The unauthorized sales were executed at P25 per kilogram without proper bidding. The NFA had purchased the rice in palay (unmilled rice) form at P23 per kilo.

The suspended NFA officials and employees included 12 regional managers, 26 branch managers, and 99 warehouse supervisors, as well as former top officials.

“We made it a point that our operations are running smoothly, and we even implemented a new price even with the limited manpower we were able to swing that and hit the 100% target,” Mr. Lacson said.

The NFA Council has approved the increased buying price for palay at P23 to P30 per kilogram (kg) for dry and clean palay and P17 to P23 per kg for fresh palay.

The current NFA inventory is 136 thousand metric tons, with a target of 495 thousand MT by the end of the year.

“Less than half (has been purchased) this first half; roughly 60% of our target will be procured in the wet season harvest,” he said.

He added that the NFA is increasing its inventory target next year to 545 thousand MT.

It is proposing a budget of P16 billion next year for rice procurement.

Additionally, Mr. Lacson said that he is proposing the regular rotation of warehouse supervisors to avoid further complacency within its ranks. — Adrian H. Halili

Rice tariff cut to set the stage for bringing down rates — DoF

FINANCE SECRETARY RALPH G. RECTO — DEPARTMENT OF FINANCE FACEBOOK PAGE

By Luisa Maria Jacinta C. Jocson, Reporter

THE recently approved tariff cut on rice imports will reduce government revenue by up to P22 billion, but will pave the way for inflation to fall sufficiently to justify bringing down policy rates, the Department of Finance (DoF) said.

Finance Secretary Ralph G. Recto said: “We are reducing inflation. Once we’re able to reduce inflation, hopefully we can reduce interest rates and that will create more growth so we can recover those what you claim to be losses,” he told reporters on Friday.

The National Economic and Development Authority Board last week approved a reduction in rice import tariffs to 15% from 35% previously. This was part of a medium-term plan to lower tariffs on agricultural and industrial products until 2028.

The Agriculture department earlier said that the tariff cut could bring down the retail price of rice by P6 to P7 per kilogram as early as July.

However, Mr. Recto clarified that easing tariffs is just a short-term measure.

“We are not relying on importing rice. That is (for) the short term. We continue to, as part of our Philippine Development Plan, increase rice productivity,” he said.

“We will continue to make those investments with our farmers, irrigation, mechanization, and so on …so the time will come that we will not have to import our food requirements, particularly rice. We are not abandoning our farmers.”

In its meetings with farmers the DoF discussed ways to increase productivity and spend the budget effectively to achieve this goal.

He also noted that proposed amendments to the Rice Tariffication Law could end up providing further support to farmers.

He said the DoF is studying ways to effectively spend the proposed P15 billion allocation for rice industry modernization, up from the original P10 billion a year.

The House of Representatives last month approved on third and final reading the amendments to the Rice Tariffication Law of 2019, which include extending the validity of the Rice Competitiveness Enhancement Fund (RCEF) and increasing its funding to P15 billion.

The RCEF receives its funding from tariffs generated from imports after the tariffication law liberalized rice imports. After largely taking away the government’s rice importing function, the law also freed up private traders to import rice on their own, in the process having to pay an import tariff on their grain. The tariff was originally set at 35% on Southeast Asian grain, though the geographical restrictions have since been removed and the tariff reduced to 15% as an anti-inflation measure.

Mr. Recto noted that rice prices have an outsized impact on inflation.

“If you are able to reduce the price of rice, then its contribution to inflation would dramatically go down,” he said.

Rice inflation rose to 23% in May, easing from the 23.9% posted a month earlier.

Food typically accounts for a large share of the consumer price index market basket in poor countries, with rice the most important element of the food sub-index in the Philippines.

The Department of Agriculture reported that domestically grown well-milled rice averaged P48-P55 as of June 6, from P38-P46 in the same period a year earlier. Regular-milled rice fetched between P45-P52 from P34-P42 a year earlier.

Falling inflation will strengthen the argument for reducing policy rates, he said.

“Possibly, we can reduce the policy rate…depends on what the inflation data will show later on. But by not doing anything, we won’t be able to reduce the price of rice. We won’t be able to do a policy cut,” he said.

Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. said that the central bank can begin its policy easing cycle by August.

Mr. Recto has said that the BSP can reduce rates by 150 basis points (bps) in the next two years.

“(Given) all the data today, I still think that 150 bps in the next two years is feasible. More so that we already did the reduction in rice tariffs. So, let’s take a look at how that will affect rice prices and inflation moving forward.”

GOCC subsidies more than triple in April

SUBSIDIES provided to government-owned and -controlled corporations (GOCCs) more than tripled in April, the Bureau of the Treasury reported.

Budgetary support to GOCCs surged 209% to P27.72 billion in April compared to a year earlier.

The National Irrigation Administration (NIA) received the most subsidies during the month with P11.425 billion, accounting for 41.2% of all subsidies.

This was followed by the Power Sector Assets and Liabilities Management Corp., which got P8 billion in April. It did not receive any subsidies in the previous months.

The National Housing Authority was granted P3.749 billion, also its first subsidy for the year so far.

Other top recipients in April were the Philippine Crop Insurance Corp. (P900 million), Intercontinental Broadcasting Corp. (P512 million), Small Business Corp. (P425 million), the Philippine Rice Research Institute (P307 million), the Philippine National Railways (P285 million), the National Power Corp. (P257 million), the Philippine Coconut Authority (P225 million),  and the Philippine Heart Center (P213 million).

GOCCs that also received at least P100 million were the National Dairy Authority (P194 million), the Philippine Children’s Medical Center (P176 million), the Cultural Center of the Philippines (P164 million), the National Kidney and Transplant Institute (P133 million), the Southern Philippines Development Authority (P124 million) and the People’s Television Network, Inc. (P100 million). 

In the four months to April, subsidies extended to GOCCs totaled P47.307 billion, up 56.3% from a year earlier.

The NIA was the top recipient in the four-month period, receiving P21.742 billion. — Luisa Maria Jacinta C. Jocson

Retailers, supermarkets see voluntary price freeze providing consumer relief

PHILIPPINE STAR/MIGUEL DE GUZMAN

RETAILERS and supermarket owners said they support a move by leading manufacturers to voluntarily keep prices steady, noting the “relief” such a measure would provide to the public.

Steven T. Cua, executive director of the Philippine Amalgamated Supermarkets Association, said that he welcomes the voluntary price freeze initiated by the Department of Trade and Industry (DTI) and carried out by eight major food manufacturers.

“DTI has chosen to monitor selected food items from producers who are considered market leaders. As such, most other manufacturers would position the prices of their products versus those coming from market leaders,” Mr. Cua told BusinessWorld.

“When market leaders keep their prices steady, competitors in the same product category normally follow suit. Of course, there will always be some who will bravely apply the red ocean strategy (making a move to expand share in a crowded market) or are forced to adjust prices due to their circumstances,” he added.

He said that although the temporary price freeze is meant to provide relief, it may also mean more sales as consumers gain purchasing power.

Roberto S. Claudio, president of the Philippine Retailers Association, said that the voluntary price freeze is “a better alternative to any price control measures previously implemented.”

He cited the example of price controls on school supplies during the back-to-school season and on basic commodities priced at below the cost of production resulting in shortages.

Mr. Claudio said the PRA will further encourage other manufacturers to support the price freeze as long as possible.

On June 1, the DTI announced that eight major manufacturers had committed to a voluntary price freeze to mitigate the effects of rising prices and El Niño.

The DTI said Monde Nissin Corp., Alaska Milk Corp., Nestlé, NutriAsia, Inc., and San Miguel Foods are participating in the initiative, which brought the total number of stock-keeping units where prices have been frozen to 31.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the voluntary price freeze will help in mitigating inflationary pressures.

“Nothing really new; they do this from time to time to help. The price freeze could have been prompted by increased competition with local and even foreign/imported alternatives,” Mr. Ricafort said.

China Bank Capital Corp. Managing Director Juan Paolo E. Colet said the voluntary price freeze is “a welcome example of good corporate citizenship that will help many consumers cope with inflation.”

He added that since it is only temporary in nature, the volunteers are signaling that they can manage any impact on their profitability.

“Meanwhile, the government and private sector have to continue working together for long-term solutions to increase productivity, improve supply chain efficiency, and ensure price stability,” he added.

The consumer price index rose 3.9% in May, the fastest rise since November 2023, according to the Philippine Statistics Authority’s report.

This was also higher than the 3.8% in April and brought the five-month average to 3.5%. — Justine Irish D. Tabile