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Philippine Savings Bank (PSBank) to hold 2024 Annual Meeting of Stockholders on April 25

 


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Cebu office space vacancy seen to stay high — Colliers

JOSE LOSADA-UNSPLASH

CEBU’s office space vacancy rate is forecasted to persist at elevated levels this year,  property consultancy firm Colliers Philippines said.

“Despite a strong net take-up, vacancies remain elevated due to new supply which is expected to persist in 2024,” Colliers said in its 2024 annual report.

The property consultancy firm projects vacancy to reach 21.3% from 20% in 2023 due to the expected delivery of 107,900 square meters (sq.m.) of new office space.

This is an improvement from the 27% vacancy rate in 2022.

“Colliers Philippines observed that outside of Metro Manila, Cebu remained the top choice for outsourcing firms and multinational companies,” Colliers said.

It projects net take-up to rise 9.42% to 72,000 sq.m. Cebu recorded the highest provincial office space take-up with 65,800 sq.m. in 2023.

However, these are all lower than the net absorption of 109,200 sq.m. in 2022.

“We expect greater absorption of office space from third-party outsourcing and shared services firms looking to set up and expand their operations,” the report said.

In 2023, Cebu accounted for 54% to 112,900 sq.m. of deals outside Metro Manila, the highest office deals outside the Philippine capital.

This was buoyed by the business process outsourcing firms, covering nearly 75% of total deals.

Concentrix, OfficePartners 360, Avant, TOA Global, and Optum, mostly situated in Cebu IT Park, were attributed to the mentioned deals.

Colliers said it also recorded 60,200 sq.m. of new office space in Cebu due to the completion of Faustina Center in CBP Fringe, Johndorf Tower in Cebu Business Park, and Skyrise 3B in Cebu IT Park.

The developments in the province’s pipeline are Filinvest Cyberzone Tower 3 in IT Park, Astra Corporate Center, Excelsior Corporate Tower in Banawa Cebu, Filinvest Cyberzone Tower 3, Grand Tower Cebu Condo Office, Il Corso, Mahi Center, Patria de Cebu, and Northwing Tower 1.

Colliers sees a marginal rise in rent and expects it to be “flattish” due to the completion of new offices built before the pandemic but only launched now.

The average rent in Metro Cebu rose 0.4% to P651 per sq.m. in 2023.

“Colliers believes that shared services, healthcare companies, and other multinational firms are likely to occupy more office spaces in this location,” it said.

The firm said despite the positive performance of the province, rationalization of office real estate is still happening.

Colliers still expects a tenant-leaning market for the province, and tenants should seize the opportunity to access better quality office buildings, a skilled labor pool, and improved infrastructure.

Recently, the Philippine Statistics Authority reported Cebu as the sixth richest city in the country outside Metro Manila in 2022, with a per capita gross domestic product of P293,426. — Aubrey Rose A. Inosante

Manila records fastest logistics rental growth in Asia-Pacific

Manila’s logistics rental growth was the fastest across 17 cities in the region for the second half of 2023, according to Knight Frank’s Asia-Pacific H2 Logistics Highlights. The country’s warehouse space rental grew by 39.3% year on year to P383 per square meter per month, more than six times higher than the Asia-Pacific average growth rate of 6.2%.

 

Manila records fastest logistics rental growth in Asia-Pacific

How PSEi member stocks performed — March 25, 2024

Here’s a quick glance at how PSEi stocks fared on Monday, March 25, 2024.


Peso drops vs dollar

BW FILE PHOTO

THE PESO depreciated to a near two-month low against the dollar on Monday amid signals from a US Federal Reserve official that they may cut rates later than expected.

The local unit closed at P56.39 per dollar on Monday, weakening by 12 centavos from its P56.27 finish on Friday, Bankers Association of the Philippines data showed.

This was the peso’s weakest finish in almost two months or since its P56.401 per dollar finish on Jan. 30.

The peso opened Monday’s session at weaker P56.37 against the dollar. Its worst showing was at P56.40, while its intraday best was at P56.24 versus the greenback.

Dollars exchanged dropped to $1.65 billion on Monday from $2.1 billion on Friday.

The peso was dragged down by the dollar strengthening to new highs and increasing global crude prices amid signals from Fed officials that the US central bank could cut rates later than expected, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Atlanta Federal Reserve bank President Raphael Bostic said on Friday he now expects just a single quarter-point interest rate cut this year versus two cuts that he had projected previously, a change in his outlook driven by persistent inflation and stronger-than-anticipated economic data, Reuters reported.

“I’m definitely less confident than I was in December” that inflation will continue to fall towards the Fed’s 2% target, Mr. Bostic said in comments to reporters.

“The peso weakened anew amid expectations of a potentially strong US retail sales report,” a trader said in an e-mail.

For Tuesday, the trader said the peso could rebound against the dollar amid increased liquidity before the long weekend.

The trader sees the peso moving between P56.25 and P56.50 per dollar on Tuesday, while Mr. Ricafort expects it to range from P56.25 to P56.45. — A.M.C. Sy with Reuters

Stocks drop on expectations of faster March CPI

REUTERS

PHILIPPINE SHARES ended lower on Monday as investor sentiment was hampered by expectations of quicker inflation this month, which could delay the central bank’s interest rate cuts.

The benchmark Philippine Stock Exchange index (PSEi) fell by 0.42% or 28.87 points to end at 6,853.10 on Monday, while the broader all shares index dropped by 0.27% or 9.69 points to close at 3,578.21

“The market is down on jitters ahead of the expected inflation uptick for March and the Bangko Sentral ng Pilipinas’ (BSP) policy reaction come April 8 Monetary Board meet,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.

BSP Governor Eli M. Remolona, Jr. last week said headline inflation may have accelerated further to 3.9% this month from 3.4% in February.

This is in line with the central bank’s projection that the consumer price index (CPI) could quicken anew in the coming months amid a low base and the expected impact of El Niño on food prices.

Analysts said faster CPI could prompt the BSP to delay its easing cycle.

The Monetary Board kept its policy rate at a near 17-year high of 6.5% for a third straight meeting in February after it raised borrowing costs by a cumulative 450 basis points from May 2022 to October 2023.

AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message that stocks ended lower on Monday due to the shortened trading week, as the market will be closed on Thursday and Friday in observance of Holy Week.

“Liquidity might not be present for the meantime, which could lead to a minor correction up to 6,800. But this is a chance to buy before we soar to a new high, breaking the hard 7,000 resistance level by April,” Mr. Vistan said.

Meanwhile, Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message that the local bourse fell due to the peso’s recent depreciation against the dollar.

“The local bourse declined… as both local and overseas investors monitored the inflation rate in the region,” she added.

Almost all of the market’s sectoral indices closed lower, with holding firms being the lone gainer, rising by 0.1% or 6.74 points to 6,437.50.

Meanwhile, financials dropped by 0.87% or 17.86 points to 2,033.28; industrials declined by 0.71% or 64.37 points to 8,958.11; mining and oil retreated by 0.67% or 55.79 points to 8,182.31; services went down by 0.34% or 6.32 points to 1,832.68; and property decreased by 0.29% or 8.33 points to 2,781.76.

Value turnover fell to P5.49 billion on Monday with 553.24 million issues changing hands from the P5.86 billion with 540.43 million shares traded on Friday.

Decliners beat advancers, 113 against 82, while 48 issues were unchanged.

Net foreign selling went down to P246.47 million on Monday from the P570.66 million recorded on Friday. — R.M.D. Ochave

Philippines summons China envoy over deadlock

SCREENGRAB FROM THE ARMED FORCES OF THE PHILIPPINES VIDEO

THE PHILIPPINES on Monday summoned China’s envoy in Manila to protest “aggressive actions” in the South China Sea at the weekend, when its coast guard fired a water cannon at a resupply mission to Second Thomas Shoal.

In a statement, the Department of Foreign Affairs (DFA) also said it had ordered the Philippine Embassy in Beijing to lodge the same protest with the Chinese Ministry of Foreign Affairs.

“China’s continued interference with the Philippines’ routine and lawful activities in its own exclusive economic zone (EEZ) is unacceptable,” it said in a statement. “It infringes upon the Philippines’ sovereign rights and jurisdiction.”

Tensions between the two countries have worsened in the past year as China’s coast guard continues to block Philippine resupply missions to Second Thomas Shoal, where a handful of soldiers live in a dilapidated World War II-era ship that Manila grounded there in 1999 to assert its sovereignty.

In a separate statement, the DFA said Foreign Affairs Undersecretary Ma. Theresa P. Lazaro had spoken with Chinese Vice Foreign Minister Chen Xiaodong to protest the Chinese Coast Guard’s use of water cannons.

The Philippines has filed 147 diplomatic protests under the Marcos administration, 14 in all this year, over China’s incursions in the South China Sea, Foreign Affairs spokesperson Ma. Teresita C. Daza told reporters in a WhatsApp message.

The Chinese Embassy in Manila said it had lodged its side on the incident with its Philippine counterpart, saying the resupply vessels had trespassed into Chinese territory.

“China urges the Philippines to immediately stop infringement and provocation and return to the right track of dialogue and consultation in real earnest to find a proper way to manage the situation so as to jointly preserve the peace and stability in the South China Sea,” it said in a statement.

Philippine security officials met on Monday to discuss Saturday’s sea incident and prepare recommendations to President Ferdinand R. Marcos, Jr.

China claims the South China almost in its entirety. Second Thomas Shoal is about 200 kilometers from the Philippine island of Palawan and more than 1,000 kilometers from China’s nearest major landmass, Hainan Island.

Its coast guard on Saturday again fired a water cannon at a wooden boat used by the Philippines to deliver food and other supplies to BRP Sierra Madre, the grounded ship.

The United States condemned China’s “dangerous actions,” with US Department of State spokesman Matthew Miller saying these are destabilizing to the region and show clear disregard for international law.

‘UNLAWFUL MARITIME CLAIMS’
On Monday, the Japanese Embassy in Manila said it was concerned about repeated actions that obstruct freedom of navigation and increase regional tensions at sea.

“Japan believes that the issue concerning the South China Sea is directly related to the peace and stability of the region and is a legitimate concern of the international community,” it said.

“The government of Japan opposes unlawful maritime claims, militarization, coercive activities and threat or use of force in the South China Sea,” it added.

Japan would continue to cooperate with the international community including member-states of the Association of Southeast Asian Nations and the United States “to protect the free and open international order based on the rule of law.”

The envoys of Canada, Australia, Germany and the European Union had also expressed concern over the Chinese ships’ actions that they said were dangerous.

China’s coast guard accused the Philippines of transporting construction materials to the “illegally grounded” warship.

The Philippines has made sincere efforts to implement the instruction of President Marcos and Chinese President Xi Jinping to lower tensions, the DFA said.

“China’s aggressive actions call into question its sincerity in lowering the tensions and promoting peace,” it added.

It urged China to “take the correct track of abiding by international law and respecting the legitimate rights of other states like the Philippines, and to cease and desist from its continued violation of international law.”

Philippine Defense Secretary Gilberto C. Teodoro, Jr. dared China to state its sea claims through another arbitration. 

“If China is not afraid to state its claims to the world, then why don’t we arbitrate under international law?” he told a news briefing.  “No country believes (their claims) and they see this as their way to use force, intimidate and bend the Philippines to their ambitions.”

The water cannon incident came days after US Secretary of State Antony Blinken said during his visit to Manila that the US stands by its “ironclad” commitments to defend the Philippines against an armed attack in the South China Sea.

“These waterways are critical to the Philippines, to its security, to its economy, but they’re also critical to the interests of the region, the United States and the world,” he said at a joint press conference in Manila with his Philippine counterpart.

A United Nations-backed tribunal based in the Hague in 2016 voided China’s claim to more than 80% of the South China Sea for being illegal. — Norman P. Aquino and John Victor D. Ordoñez

TIMELINE: Rift deepens between Manila, Beijing

FISHERMEN from Masinloc, Zambales province in northern Philippines released on Monday an 18-foot-tall buoy on which it is written: “Atin ang Pinas” (The Philippines is ours). Fisherfolk in Zambales, whose coast faces the South China Sea, are protesting China’s “continued harassment” of Filipino fishermen at the Scarborough Shoal. — PHILIPPINE STAR/MICHAEL VARCAS

RELATIONS between Manila and Beijing have soured under Philippine President Ferdinand R. Marcos, Jr., with Manila pivoting back towards the United States which supports the Southeast Asian nation in its maritime disputes with China.

Here is a timeline of key events since 2023 that have escalated tensions between the Philippines and China:

JAN. 3-5 — Marcos goes on three-day visit to Beijing where he and Chinese President Xi Jinping agree to set up direct communications between their foreign ministries on the South China Sea.

FEB. 2 — The Philippines grants the United States greater access to four more military bases under the 2014 Enhanced Defense Cooperation Agreement (EDCA).

FEB. 13-14 — The Philippines accuses China’s coastguard of directing a “military-grade laser” at its troops living aboard an aging warship that Manila deliberately grounded on the disputed Second Thomas Shoal in 1999. Marcos summons China’s ambassador.

APRIL 3 — The Philippines reveals the locations of the four additional bases that Washington can use under EDCA. Three face north towards Taiwan and one is near the disputed Spratly Islands.

APRIL 11 — More than 17,000 Filipino and US soldiers begin their largest ever joint military drills in the Philippines.

APRIL 22 — Marcos and his foreign secretary meet China’s then-foreign minister Qin Gang in Manila, pledging to work together to resolve maritime differences.

MAY 1 — US President Joseph R. Biden welcomes Marcos at the White House, the first visit by a Philippine leader in 10 years. They express “unwavering commitment to freedom of navigation and overflight in the South China Sea.”

MAY 3 — The United States and the Philippines agree on new guidelines for their 1951 Mutual Defense Treaty, which specifically mention that mutual defense commitments would be invoked in an armed attack on either country “anywhere in the South China Sea.”

JUNE 6 — The coast guards of the United States, Japan and the Philippines hold trilateral exercises in the South China Sea, the first such manoeuvres.

AUG. 5 — The Philippines accuses China’s coast guard of blocking and firing a water cannon against a supply boat transporting food for troops on the Second Thomas Shoal, known in China as Renai Reef and in Manila as Ayungin Shoal.

AUG. 7 — China’s coast guard urges the Philippines to remove the grounded warship from the Second Thomas Shoal.

OCT. 22-24 — The Philippines accuses Chinese coastguard vessels of intentionally colliding with its vessels routinely supplying forces stationed at the Second Thomas Shoal. No one was harmed.

NOV. 16 — The Philippines calls on China to remove all “illegal structures” built within its exclusive economic zone (EEZ), cease reclamation in those areas and be accountable for the damage the activities caused.

NOV. 21 — The militaries of the Philippines and the United States launch joint patrols from waters near Taiwan to the South China Sea.

NOV. 25 — The Philippines and Australia begin their first joint sea and air patrols in the South China Sea.

DEC. 9-10 — The Philippines accuses China of firing water cannon at its boats, including one carrying its military chief, and ramming others, causing serious engine damage. China’s coast guard says the Philippine vessel intentionally rammed its ship.

DEC. 19 — Marcos says a “paradigm shift” is needed in how his country approaches the South China Sea, as diplomatic efforts with Beijing were headed in a “poor direction.”

DEC. 21 — China says bilateral relations are at a crossroads and warns the Philippines against “misjudging” the maritime situation.

JAN. 3 — The Philippines and the United States carry out their second joint patrol in the South China Sea as China conducts a similar activity with its naval and air forces in the disputed waterway.

FEB. 9 — The Philippines and the United States conduct joint maritime exercises in the South China Sea for a third time as China carries out “routine patrols” in the area.

FEB. 10 — The Philippine Coast Guard accuses China of “dangerous and blocking” maneuvers while its vessel patrolled near Scarborough Shoal in the South China Sea this month.

MARCH 5 — The Philippines calls out China for its coast guard’s “reckless” and “illegal” actions that led to a collision between a Chinese and Philippine ship, damaging the latter and injuring some of its crew, during a resupply mission for troops at the Second Thomas Shoal. China says the Philippine vessels illegally intruded into waters adjacent to the shoal.

MARCH 6 — The Philippines summons China’s deputy chief of mission in Manila to protest “aggressive actions” by Chinese naval forces against the resupply mission.

MARCH 20 — China says the United States must refrain from “stirring up trouble” or taking sides on the South China Sea issue, after US Secretary of State Antony Blinken said, while on a visit to Manila, a security deal with the Philippines extended to attacks on the Philippine coast guard.

MARCH 24 — China’s coastguard says it had taken measures against Philippine vessels carrying out a resupply mission for troops at the Second Thomas Shoal, while the Philippines decried the moves, including the use of water cannon that damaged its ship and injured its crew, as “irresponsible and provocative.”

MARCH 25 — Philippines summons China’s envoy to protest “aggressive actions” in the South China Sea, as Manila’s Defense minister dared Beijing to bolster its vast sovereignty claims by taking them to international arbitration. — Reuters

Timor Leste to hold hearings on wanted Pinoy congressman

POLÍCIA CIENTÍFICA E DE INVESTIGAÇÃO CRIMINAL/ FACEBOOK/PHILSTAR FILE PHOTO

By Chloe Mari A. Hufana

IT MAY take as long as 40 days before an expelled congressman accused of masterminding the killing of his province’s governor can be deported back to the Philippines from Timor Leste, where he will first undergo court proceedings, according to government agents.

A Timor Leste court will hold court proceedings to determine whether to send ex-Negros Oriental Rep. Arnolfo A. Teves, Jr. back home, National Bureau of Investigation (NBI) Director Medardo G. de Lemos told a news briefing on Monday.

“Mr. Teves will be presented in a court to decide if they will allow him to go back here to the country,” he said.

Timor Leste President Jose Ramos-Horta promised the NBI seven to 40 days to resolve the case.

NBI agents earlier returned to the Philippines after filing to get custody of the former lawmaker in Timor Leste. Mr. De Lemos blamed Timor Leste’s complex justice system for the delay.

Deportation proceedings had yet to start because authorities were still evaluating the red notice issued by the International Police, he added.

Mr. De Lemos said the NBI was not expecting to bring home Mr. Teves on their first visit to Timor Leste, adding that agents went there to verify his arrest.

The NBI team managed to get a “smiling photo” and the fingerprints of Mr. Teves, he added.

Ferdinand S. Topacio, the ex-congressman’s lawyer in the Philippines, accused the NBI of harassment by getting a photo of his client while being detained.

He said Mr. Teves fears for his safety and is not keen to come home.

He is now an undocumented alien in Timor Leste after the Philippines’ Department of Foreign Affairs (DFA) canceled his passport.

The Department of Justice is also looking at rendition or voluntary surrender to bring Mr. Teves home.

Ephraim B. Cortez, president of the National Union of People’s Lawyers, told BusinessWorld via Viber that the easiest way to bring Mr. Teves home is for the Timor Leste government to surrender custody.

Mr. Topacio said they might bring his client’s case to the United Nations Commission on Human Rights.

“We do not recognize or acknowledge any camp that refuses to go through our justice system,” Justice Assistant Secretary Jose Dominic F. Clavano IV told reporters in a WhatsApp message.

“The brutal crimes happened here in the Philippines,” he said. “The families of the victims are here in the Philippines. So, we want justice to be served here in the Philippines.”

Mr. Teves is accused of masterminding the murder of former Negros Oriental Governor Roel R. Degamo last year and five others. He was added to Interpol’s red notice list last month.

DoE, PNP partner to clean up LPG industry

A man arranges tanks of liquefied petroleum gas (LPG) on a truck. — PHILIPPINE STAR/EDD GUMBAN

By Sheldeen Joy Talavera, Reporter

THE DEPARTMENT of Energy (DoE) and the Philippine National Police (PNP) are launching a crackdown on illegal and hazardous practices in refilling, trading and maintenance of liquefied petroleum gas (LPG) cylinders in the country.

“Recognizing the significant risk to both life and property, the government acknowledges the urgent need to ensure that all activities involving the commerce of LPG meet the highest quality and safety standards,” Energy Secretary Raphael P.M. Lotilla said in a statement on Sunday.

The DoE and the PNP have already inked an agreement to strictly enforce the laws regulating the industry and “ensure the protection of the interests and general welfare of the public.”

Under the agreement, the DoE and PNP will establish “Oplan LIRA,” which shall enforce compliance to Republic Act No. 11592, the LPG Industry Regulation Act (LIRA), on all levels of the industry.

It activates the police Criminal Investigation and Detection Group (CIDG) in DoE-led inspections of LPG facilities: retailers, refillers, motor vehicles involved in the transportation of LPG in bulk or LPG cylinders and cartridges.

“Strict monitoring and enforcement is paramount to mitigate risks associated with LPG operations and promote responsible and sustainable practices within the industry,” Mr. Lotilla said.

The PNP is also tasked to investigate potential criminal violations under the LIRA, either upon receiving a report or on its initiative.

The joint DoE-PNP activities could involve the conduct of surveillance, entrapment, filing search warrant applications, and initiating criminal actions against violators.

“The passage of LIRA has prompted the government to shift focus on consumer welfare and protection, where the DoE has prioritized quality, health, safety, and environmental standards,” the DoE statement said.

Based on its records, the DoE has issued licenses to about 15,000 business establishments in the LPG trade as of end-2023.

Marcos declares half-day work on March 27

PHILIPPINE President Ferdinand R. Marcos, Jr. has ordered the suspension of work in government offices from 12 noon onwards on Wednesday, March 27 so state workers can observe the Catholic Holy Week.

Under Memorandum Circular No. 45 signed by Executive Secretary Lucas P. Bersamin and published on Monday, agencies that handle health services, disaster response and other vital services will not be covered by the memo.

The shorter workday would let government employees travel to and from the different regions in the country before Maundy Thursday and Good Friday, according to a copy of the memo.

About 78.8% of the population or 85.65 million Filipinos are Roman Catholics, according to the local statistics agency. — John Victor D. Ordoñez

Monitor Lenten prices, DA urged

A child sits in a motorized vehicle loaded with vegetables at a public market in Manila, Philippines, Oct. 21, 2022. — REUTERS/LISA MARIE DAVID

PRICES of basic commodities, especially fish and vegetables, should be guarded against unwarranted increases during the Holy Week, a congressman urged the Department of Agriculture (DA) on Monday.

Party-list Rep. Wilbert T. Lee also called on the Department of Trade and Industry (DTI) to set suggested retail prices for basic goods to prevent price gouging in the culminating week of the Lenten season.

“While it is natural for the retail prices of vegetables and fish to go up during the Holy Week, the DA and DTI should still closely monitor its prices,” Mr. Lee said in mixed English and Filipino in a statement.

Last week, the DA reported that it expects a spike in retail prices for fish and vegetables — the preferred food of Catholics who would be observing abstinence from pork and other meat products.

Fish products are expected to increase by 10% to 20%, DA Assistant Secretary Arnel V. de Mesa said in a public briefing last Friday even if he assured a sufficient supply in the market throughout the Holy Week. 

Commenting on DA’s statement, Mr. Lee said that “price increases should not be so significant” despite increased demand for the last week of Lent.

According to DA’s Bantay Presyo program, the average retail prices for a kilo of Bangus (milk fish), Tilapia, local and imported Galunggong in the National Capital Region (NCR) last week stood at P192.61, P141.33, P222.66, and P193.33, respectively.

While the DA’s Bantay Presyo initiative was set to cover the 17 regions of the country — the program only provides complete and updated data to the National Capital Region (NCR).

“As for now, the DA only monitors Metro Manila prices. We hope that this program will be extended to provinces and other regions so that other people not from the NCR can also benefit from price monitoring,” Mr. Lee said in Filipino. Kenneth Christiane L. Basilio