ACEN shares down following earnings data

March 18, 2024 | 12:01 am

ACEN Corp. shares fell last week as annual earnings decline led to heightened selling pressure.

Data from the Philippine Stock Exchange (PSE) showed that Ayala-led ACEN had 105.89 million stocks worth P412.49 million exchanged from March 11 to 15.

ACEN’s price per share closed at P3.78 on Friday, lower by 7.4% from the P4.08 closing price the week before. Year to date, the stock declined 6.8% from the P4.38 finish on the last trading day of 2023.

Analysts attributed the stock movement to the dismal full-year earnings report of ACEN.

“[The] main reason for the continued selling pressure is their earnings announcement,” Mercantile Securities Corp. Head Trader Jeff Radley C. See said.

ACEN’s net income dropped by 37.6% to P9.11 billion last year from P14.6 billion in 2022.

The company’s net income attributable to its parent also fell to P7.4 billion, lower by 43.3% from P13.06 billion in 2022.

“[The decline] was primarily due to the remeasurement gain from acquiring the Australia platform in 2022,” Globalinks Securities and Stocks, Inc. Senior Trader Crismon V. Santarina said.

He added that the loss has now been reflected in the market as the company saw continued selling pressure.

“The stock is trading at oversold levels and there might be a possibility for it to touch the P3.50 level,” Mr. See said in an e-mail.

ACEN finished as the 9^th most traded stock by volume last Friday.

On Tuesday, the renewable energy company announced a joint development project with US-based company BrightNight.

The project will facilitate the development of one gigawatt of renewables worth $1.2 billion over the next five years.

“[The project] is indeed positive news for ACEN. However, projects of this nature typically require time to develop, and their impact on the stock price is usually minimal,” Mr. Santarina said in a Viber message.

He added that investors remain wary of the growth stock as they opt for attractive blue-chip alternatives such as Meralco and Aboitiz Power.

This week’s closing price at P3.78 was the lowest since the P3.71 finish on Dec. 21 last year.

Both analysts see that ACEN’s share price may continue to decline for the coming week.

Given this, Mr. Santarina said that “[the stock] is a prime opportunity for investors to buy while it is near its 52-week low.”

He projects ACEN’s full-year net income at P11.3 billion.

“ACEN’s major support and major resistance are at P3.59 and P4.33, respectively,” Mr. Santarina said.

For Mr. See, support levels to look at are P3.50, P3, and P2.70. — Andrea C. Abestano

RCBC to use recycled PVC in credit card production

March 18, 2024 | 12:01 am

RIZAL COMMERCIAL Banking Corp. (RCBC) will now use recycled polyvynil chloride (rPVC) plastic for its credit cards, it said on Sunday.

“As a bank, we are committed to ensuring we have a sustainable future. Our shift to the use of recycled plastics for credit card products is one among many steps we are taking towards this goal,” RCBC Credit Cards President and Chief Executive Officer Arniel Vincent B. Ong said in a statement.

The new rPVC credit cards are made of at least 80% recycled plastic.

RCBC began using rPVC for its credit cards in 2023, with 60% of new, renewed, and replaced credit cards made from recycled plastics. The bank said it is aiming to increase this share in the coming years.

RCBC added that it will use at least 2,250 kilograms of recycled plastics for its credit cards every year following the complete transition to the new material. This would be equivalent to the weight of up to two sedan cars.

The bank also previously embarked on a campaign to shift its credit card statements from paper to electronic means, with over 96% of all accounts currently enrolled in e-mail statements.

RCBC’s attributable net income rose by 1.14% to P12.218 billion in 2023 due to higher loans and deposits.

Its shares closed unchanged at P22.05 apiece on Friday. — AMCS

How PSEi member stocks performed — March 15, 2024

March 18, 2024 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Friday, March 15, 2024.

Philippines ranks 50^th in 170-country ‘Impunity Index’

March 18, 2024 | 12:00 am

The Philippines improved four notches to 50th place out of 170 countries in the latest edition of Atlas of Impunity or the “Impunity Index,” which measures the abuse of power by governing bodies, by the political risk analysis and consulting ﬁrm Eurasia Group. However, the country has the fourth-highest level of impunity among its peers in the East and Southeast Asian region with an overall score of 2.36 out of 5 (5 is worst). It was worse than the global and Asia average scores of 1.94 and 2.15, respectively.

2023 Mitsubishi vehicle sales in PHL

March 18, 2024 | 12:00 am

Fed review in spotlight as market looks for leads

March 17, 2024 | 9:00 pm

PHILIPPINE STOCKS may trade sideways in the coming days after ending a seven-week winning run as investors look ahead to the policy meeting of the US Federal Reserve.

On Friday, the benchmark Philippine Stock Exchange index (PSEi) dropped by 2.09% or 145.64 points to close at 6,822.32, while the broader all shares index fell by 1.39% or 50.28 points to end at 3,560.46.

Week on week, the PSEi retreated by 1.73% or 119.89 points from its 6,942.21 close on March 8.

“A Friday sell-off caused the local market to end in the red territory last week, snapping its seven-week gaining streak. In the process, the bourse fell below its 10-day and 20-day exponential moving averages,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Last week’s drop opens doors for bargain hunting opportunities. However, a strong rally could be difficult amid tempered hopes of a rate cut by the Fed following the above-expected US producer price index (PPI) inflation. Hence, the market may only move sideways,” Mr. Tantiangco said. “Aside from this, investors are also expected to watch out for the remainder of the fourth quarter and full-year 2023 corporate results.”

The Fed will hold its policy meeting on March 19-20.

The US central bank held its target rate steady at the 5.25-5.5% range for a fourth straight time at its January meeting after raising borrowing costs by 525 basis points from March 2022 to July 2023.

US government data released last week showed that its inflation rate accelerated to 3.2% in February from 3.1% in January.

A report from the Labor department showed the producer price index for final demand rose 0.6% in February after advancing 0.3% in January, Reuters reported. Economists had forecast the PPI would climb 0.3%.

In the 12 months through February, the PPI shot up 1.6% after advancing 1% in January. The report followed news on Tuesday that consumer prices increased strongly for a second straight month in February.

“The markets would be anticipating the upcoming Fed rate-setting meeting and decision, as well as the updated Fed dot plot, as source of new market leads on March 20,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise said in a Viber message.

Online brokerage firm 2Trade-Asia.com put the PSEi’s support at 6,800 and resistance at 7,000.

“Brace for price gyrations in tandem with macro headlines as markets remain interest rate sensitive,” 2TradeAsia.com said.

Meanwhile, Mr. Tantiangco placed the PSEi’s support at 6,700 and resistance at 7,000, and Mr. Ricafort put its immediate major support at 6,340-6,470.

“Major resistance over the past two years is at 6,840 levels, for any consistent breach above which would lead to further upside potential towards the 7,100-7,500 levels for the coming months,” Mr. Ricafort said. — R.M.D. Ochave with Reuters

Peso to move sideways vs dollar

March 17, 2024 | 9:00 pm

THE PESO could trade sideways against the dollar this week as the market awaits the policy meeting of the US Federal Reserve.

The local unit closed at P55.53 per dollar on Friday, weakening by 13 centavos from its P55.40 finish on Thursday, Bankers Association of the Philippines data showed.

Week on week, however, the peso strengthened by four centavos from its P55.57 close on March 8.

The peso weakened on Friday following the release of US producer price index (PPI) and retail sales data, which resulted in a general stronger dollar and higher US Treasury yields, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Retail sales rose 0.6% last month, the Commerce department’s Census Bureau said, Reuters reported.

They increased 1.5% on a year-on-year basis in February.

Meanwhile, another report from the Labor department showed the producer price index for final demand rose 0.6% in February after advancing 0.3% in January.

In the 12 months through February, the PPI shot up by 1.6% after advancing 1% in January.

For this week, Mr. Ricafort said the market will monitor the Fed’s March 19-20 policy meeting for leads.

Mr. Ricafort sees the peso ranging from P55.30 to P55.80 per dollar this week. — A.M.C. Sy with Reuters

PEZA pharma locators eyed for expedited-permit scheme

March 17, 2024 | 8:07 pm

Illustration photo shows various medicine pills in their original packaging in Brussels, Belgium, Aug. 9, 2019. — REUTERS/YVES HERMAN/ILLUSTRATION

PHARMACEUTICAL companies and makers of medical devices who operate in economic zones are being considered for green-lane treatment, entitling them to an expedited process for obtaining permits from drug regulators, the Philippine Economic Zone Authority (PEZA) said.

In a statement, PEZA said the proposal was discussed in a meeting with the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) and the Food and Drug Administration (FDA) last week.

“The high-level discussion centered on actionable steps to enhance the ease of doing business for both domestic and export-oriented drug and medical device manufacturers by addressing certain non-tariff barriers, particularly in permitting and licensing,” the investment promotion agency (IPA) said.

PEZA Director General Tereso O. Panga told BusinessWorld that the parties agreed to update the memorandum of agreement (MoA) signed in 2014.

“For this new MoA with the FDA, we agreed to consolidate two MoAs where the cooperating parties will provide a green lane for PEZA-registered business enterprises (involved in) pharmaceutical and medical device manufacturing,” Mr. Panga said in a Viber message.

The new MoA also aims to come up with guidelines for the registration of pharmaceutical industrial parks to provide a one-stop shop for FDA facilitation of permits and clearances and review policies to attract more pharma companies to the Philippines.

Mr. Panga said the goal is to encourage local production to lower the cost of drugs and medical devices, by reducing the turnaround time for pre-assessment activities they are subject to.

On Thursday, PEZA and the FDA unveiled their medical device economic zone initiative.

“We are committed to working in unison with the OSAPIEA and PEZA to simplify business operations in our country,” FDA Director General Samuel A. Zacate said.

“By refining our policies and collaborating with PEZA, we aim to gain a better understanding of the concerns of locators. These initiatives are expected to elevate the local drug supply and reduce costs to competitive generic levels, akin to those in India,” he added.

As of December, PEZA hosted 26 companies manufacturing of pharmaceutical products and medical equipment, accounting for P25.49 billion in investment and 19,000 direct jobs.

“Moreover, PEZA is reviving talks with the leading Filipino companies into pharmaceutical-related activities, such as Lloyd Laboratories, Pascual Laboratories, and United Laboratories, Inc., for the establishment of a modern pharma park,” the IPA said.

“PEZA is also in talks with Royal Cargo Pharma Logistics, the first Good Distribution Practices (GDP)-certified logistics service provider in the Philippines, to complement the proposed pharma-zone ecosystem,” it added. — Justine Irish D. Tabile

Wearables industry exports decline in Jan.

March 17, 2024 | 8:07 pm

WEARABLES exports dropped in January and are expected to remain weak this year, the Confederation of Wearable Exporters of the Philippines (CONWEP) said.

“Industry performance continues to shrink and we foresee an overcast horizon ahead of us for 2024,” CONWEP Executive Director Ma. Teresita Jocson-Agoncillo said via telephone.

Exports by the wearables industry posted -19% growth in January to $82.4 million.

Apparel exports contracted 13% to $44.34 million, travel goods shrank 25% to $32.38 million, and footwear exports declined 16% to $5.67 million.

Apparel exports accounted for 0.7% of total exports in January. The leading exports were electronic products and semiconductors, which accounted for 58.2% and 45.5% respectively.

The trade-in-goods deficit shrank 24% to $4.22 billion in January.

Slower global demand, external conflicts, and regional competitors continue to put pressure on wearables exports, Ms. Jocson-Agoncillo said.

“Buyers would tend to be a little more careful in placing their orders to supplier countries like the Philippines, because they would need flexible sourcing that can promise low cost, are quick-to-market, and fully adhere to international laws… tied to sustainability issues and human rights,” she said.

Tensions between China and the US, the Russia-Ukraine war, and conflict in the Middle East have been disrupting the wearables supply chain, Ms. Jocson-Agoncillo added.

CONWEP has said a major foreign brand pulled out from the Philippines and transferred operations to Vietnam after that country signed a free trade agreement with the European Union.

The wearables industry could also suffer more job losses if Philippine legislators go ahead with a wage hike law, according to CONWEP.

“A wage increase at the moment is a major factor in maintaining competitiveness as a sourcing hub for apparel products from the Philippines,” Ms. Jocson-Agoncillo said.

Foundation for Economic Freedom President Calixto V. Chikiamco said the government should prioritize infrastructure catering to the movement of goods to boost trade in the coming months. These include airports, seaports, shipping services, warehouses, roads and transport links to key trade hubs.

“(President Ferdinand R. Marcos, Jr.) should promote foreign investment in shipping now that the Public Service Act has opened the sector to 100% foreign investment,” he said in a Viber message.

Mr. Chikiamco also urged lawmakers to pass a law separating the regulatory and operating functions of the Philippine Ports Authority to address port congestion.

Meanwhile, investment pledges recently gained by the Philippines should help establish the country as a semiconductor hub in the region alongside South Korea and Taiwan, public investment analyst Terry L. Ridon said.

“Government should follow through with the investment commitments in the recent US trade mission and Berlin official trip, in which the country is positioning itself as an alternative to China in the manufacturing of semiconductors and similar products, amid the rising competition between the US and China,” Mr. Ridon, convenor of think tank InfraWatch PH, said in an e-mail.

Last week, Mr. Marcos tallied $4 billion in foreign investment pledges from German companies in manufacturing, information technology, and agriculture. Several US companies are also set to invest about $1 billion in the Philippines, US Commerce Secretary Gina Raimondo said.

Semiconductor growth must come hand-in-hand with reduced red tape and corruption, Mr. Ridon added. — Beatriz Marie D. Cruz

Czech company expresses interest in PHL electronics, infotech, defense tie-ups

March 17, 2024 | 8:06 pm

THE Department of Trade and Industry (DTI) said it received expressions of interest from a Czech technology to engage in Philippine partnerships in electronics manufacturing, information technology and business process management (IT-BPM), and defense.

In a statement, the DTI said that it met with representatives of ERA, a surveillance and reconnaissance technology company, which plans to establish a presence in the Philippines.

“ERA’s plans align perfectly with the Philippines’ strategic vision for economic development,” Trade Secretary Alfredo E. Pascual said.

“We’re excited about the immense potential for collaboration and technological knowledge transfer between ERA and other leading industrial players,” he added.

ERA has said it hopes to tap the Philippine electronics industry, which includes over 1,000 companies and employs 3 million workers.

The DTI also said that ERA also finds the Philippine IT-BPM industry talent pool attractive.

“(This provides) a reliable pool of talent for companies like ERA seeking to expand their operations in the Philippines,” the department said.

ERA also expressed interest in military and civilian security ventures in the Philippines.

On Saturday, the DTI also reported that the Philippine delegation signed three partnership deals at the Philippine-Czech Business Forum in Prague.

One of the agreements was signed between the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. and the Electrical and Electronic Association of the Czech Republic.

The second memorandum of understanding was signed between the IT and Business Process Association of the Philippines, Inc. and the Confederation of Industry of the Czech Republic.

The last deal was between the Philippine Chamber of Commerce and Industry and the Confederation of Industry of the Czech Republic. — Justine Irish D. Tabile

ERC raises power generation caps for grids

March 17, 2024 | 8:06 pm

THE Energy Regulatory Commission (ERC) said it set new caps for installed generating capacity (IGC) and market share for the main power grids in 2024.

The national grid’s IGC rose to 25.57 million kilowatts (kW), or 25,567.27 megawatts (MW) from last year’s 25.47 million kW or 25,471.04 MW, according to a resolution dated March 12.

For Luzon, the allotted IGC for 2024 is 17.96 million kW (17,961.72 MW); the Visayas 3.42 million kW (3,417.17 MW); and Mindanao 4.19 million kW (4,187.84 MW).

The IGC is the maximum capacity of the generation facilities connected to a transmission system or distribution system, which are part of a particular grid.

The ERC sets the caps for IGC annually.

Under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001, no company or related group can own, operate or control more than 30% of the IGC of a grid and 25% of the national IGC.

“The base (total installed capacity) has increased; that is why the cap was adjusted proportionate to the base,” ERC Chairperson Monalisa C. Dimalanta said in a Viber message.

“Larger base reflects new capacities added to the system in 2023,” she said.

For 2024, the national grid’s market share limit is set at 6.39 million kW (6,391.92 MW), against 6.37 million kW (6,367.76 MW) a year earlier.

Power companies cannot own facilities with installed capacities exceeding 5.38 million kW (5,388 MW) in Luzon, 1.03 million kW (1,025 MW) in the Visayas, and 1.26 million kW (1,256 MW) in Mindanao. — Sheldeen Joy Talavera

Home Credit sees strong demand for e-bike, air conditioner loans

March 17, 2024 | 8:06 pm

CONSUMER finance provider Home Credit Philippines said it is experiencing strong loan application volumes for customers seeking to purchase electric bikes (e-bikes) and air conditioners on credit.

In a briefing, Sheila A. Paul, chief marketing officer of Home Credit, said that customers use the e-bikes for their businesses, while new air conditioners are being bought for sustainability reasons.

“Our up-and-coming product, actually, ever since the pandemic, was laptops. And this year, our up-and-coming products are e-bikes and air conditioners,” Ms. Paul said on Friday.

However, she said that this does not include motorcycles, which are still not eligible for Home Credit loans.

“But if ever we go into it, it would be (one of our) highest-value items. Because if you compare, some iPhones cost as much,” she said.

The top product in terms of financing applications remains mobile phones, followed by televisions.

In 2023, the company acquired 1.1 million new customers, which brought its total customer base to 10.4 million, with more than half of them women.

Ms. Paul said that according to a study conducted by the company, wives and mothers are the main purchasing decision-makers in families.

“We found out that in the segment we’re targeting, the decision-makers are really women. So it’s either the wives or the mothers who are consulted on these kinds of purchases,” she added.

She said the average amount borrowed from Home Credit ranges from P15,000 to P20,000.

“And then we actually ask for a 20-30% down payment, so you can imagine the prices of the products they are purchasing through us,” she added.

Asked about the company’s outlook this year, she said that: “Actually, for us, 2023 was a good year. But we want to be conservative for 2024. Because there’s still so much happening globally.” — Justine Irish D. Tabile