How PSEi member stocks performed — September 6, 2023
Here’s a quick glance at how PSEi stocks fared on Wednesday, September 6, 2023.
Coca-Cola Philippines continues efforts to meet World Without Waste goals
Coca-Cola Philippines continues to make progress on its ambitious sustainable packaging program, World Without Waste, with significant milestones.
Since the company’s global launch of World Without Waste in 2018, Coca-Cola Philippines has rolled out a series of innovations and partnerships in the Philippines to achieve its goals by introducing packaging innovations; collaborating with different sectors to create and support existing collection hubs across the country to bring collection and recycling closer to communities; and forging strategic alliances with the government, nongovernment organizations, and civil society to help establish a circular economy for plastic packaging in the country.
For 2023, Coca-Cola Philippines pledges to continue serving Filipino consumers with their favorite brands of beverages while supporting communities and growing a sustainable business in the Philippines for the future. Among the company’s immediate targets is to make recycling easier and more engaging for consumers by expanding its over 2,800 waste collection hubs across the country through increased partnerships with like-minded organizations and institutions. This also includes enabling the participation of microentrepreneurs, particularly sari-sari stores, through the Tapon to Ipon and Tindahan Extra Mile Balik PET Bottle programs, to help create a community-backed circular economy of plastic packaging while promoting economic empowerment among micro-retailers.
At present, Coca-Cola Philippines has launched more than 600 Tapon to Ipon store hubs across the country. The company has also partnered with the provincial governments of Iloilo and Davao del Sur for large-scale collection of recyclable plastic bottles.
In addition, Coca-Cola Philippines helps improve the welfare of informal waste sector workers by supporting the work of social entrepreneur, Plastic Bank Philippines. The partnership has activated 38 waste collection locations and 651 collection community members in the South Luzon area and has resulted in the collection of 546,000 kilograms of post-consumer bottles for recycling since 2021.
In the Philippines and around the world, The Coca-Cola Company continues to work to create a more accessible way of recycling and working toward a more sustainable future for packaging. The global World Without Waste program is anchored on three interrelated goals: Design, Collect, and Partner.
- Design: Make 100% of its packaging recyclable globally by 2025 and use at least 50% recycled material in its packaging by 2030
- Collect: Collect and recycle the equivalent of every bottle and can it sells by 2030
- Partner: Bring people together to support a healthy, debris-free environment
For more information on the sustainability initiatives of Coca-Cola Philippines, follow the company’s social media channel: @CocaColaPhilippines on Facebook and @cocacolaph on Twitter and Instagram — or visit www.coca-cola.com.ph.
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Peso sinks to near 9-month low as US dollar maintains strength
THE PESO depreciated to a near nine-month low on Wednesday as the dollar gained ground amid rising US bond yields and global oil prices.
The local currency closed at P56.94 versus the dollar on Wednesday, declining by 14 centavos from Tuesday’s P56.80 finish, data from the Bankers Association of the Philippines’ website showed.
This was the peso’s worst finish since it closed at P57.375 per dollar on Nov. 22, 2022.
The local unit opened Wednesday’s session weaker from Tuesday’s close at P56.90 per dollar. Its intraday best was at P56.80, while its worst showing was at P56.99 against the greenback.
Dollars traded went down to $1.36 billion on Wednesday from the $1.52 billion on Tuesday.
The peso declined amid broad dollar strength after US bond yields and oil prices rose on Wednesday, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in a Viber message.
“The peso weakened as global crude oil prices continued to rally after Saudi Arabia and Russia maintained supply restrictions,” a trader said in an e-mail.
The dollar held close to a six-month peak as jitters over China and global growth weighed on risk appetite, while the yen strengthened as Japan’s top currency diplomat sent a warning about the currency after it earlier dropped to a 10-month low, Reuters reported.
The yen strengthened by as much as 0.4% to 147.02 per US dollar after Japan’s top currency diplomat, Masato Kanda, said they won’t rule out options if speculative moves persist, the strongest warning since mid-August.
By 0813 GMT, it stood at 147.47 per dollar, compared with 147.82 earlier in the session, which was its lowest since Nov. 4.
The Asian currency has hovered around the key 145-per-dollar level for the past few weeks, leading traders to keep a wary eye on signs of intervention by Tokyo.
Against a basket of currencies, the dollar was at 104.77, not far off the six-month high of 104.90 touched on Tuesday. Economic data from China and Europe on Tuesday fanned some fears of slowing global growth, pushing investors to scramble for the greenback.
The yield on the benchmark US 10-year Treasury note rose nine basis points to 4.26% after reaching 4.268%, its highest since Aug. 25.
Meanwhile, oil prices surged more than 1% in the previous session, as markets worried about a supply shortage after Saudi Arabia and Russia extended their voluntary supply cuts to the end of the year.
“This development could mean inflation stays higher for longer which could mean central banks have less room to maneuver,” Mr. Mapa said.
For Thursday, the peso could trade depending on the dollar’s movement, he said.
Meanwhile, the trader said the peso could strengthen as the dollar might weaken on potentially strong European gross domestic product data.
The trader sees the peso moving between P56.80 and P57 per dollar on Thursday. — AMCS with Reuters
Philippine shares rise further on increased buying
PHILIPPINE SHARES continued to climb on Wednesday amid increased buying and as the market awaits the release of US data that could affect the next move of the US Federal Reserve.
The Philippine Stock Exchange index (PSEi) rose by 16.69 points or 0.26% to end at 6,241.69 on Wednesday, while the broader all shares index went up by 8.11 points or 0.24% to close at 3,368.25.
“Investors are slowly buying into the market as we see buying pressure at this level. It’s not that significant yet due to the low value turnover as compared to months before,” Mercantile Securities Corp. Head Trader Jeff Radley C. See said.
Value turnover went up to P3.84 billion on Wednesday with 459.94 million shares changing hands from the P3.41 billion with 437.48 million issues seen on Tuesday.
“Philippine shares still managed to eke out modest gains despite rising oil prices after Saudi Arabia and Russia extended their voluntary supply cuts… On Wednesday, investors await the release of the Beige book, as well as economic data releases on the US trade deficit and services industry,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Saudi Arabia and Russia on Tuesday said they would extend voluntary oil cuts to the end of the year, despite a rally in the oil market and analyst expectations of tight supply in the fourth quarter, Reuters reported.
Oil prices rose sharply following the news, with Brent rising above $90 a barrel for the first time since November, despite steady increases in Iranian and Venezuelan oil exports as the market believes the United States is not enforcing sanctions as stringently as in previous years.
The Saudi and Russian voluntary cuts are on top of the April cut agreed by several OPEC+ (Organization of the Petroleum Exporting Countries and its allies) producers, which extends to the end of 2024.
Mr. See added that the market is monitoring Metro Pacific Investments Corp.’s (MPIC) delisting plans.
Most sectoral indices went up on Wednesday. Holding firms rose by 42.83 points or 0.71% to 6,027.28; services gained 6.29 points or 0.41% to end at 1,517.51; industrials went up by 15.02 points or 0.17% to 8,834.67; and financials climbed by 1.17 points or 0.06% to 1,820.
Meanwhile, mining and oil fell by 109.85 points or 1.07% to 10,136.06 and property declined by 8.52 points or 0.33% to 2,572.49.
Decliners outnumbered advancers, 95 to 91, while 40 names closed unchanged.
Net foreign selling declined to P663.89 million on Wednesday from P669.21 million on Tuesday.
MPIC is one of the three key Philippine units of Hong Kong-based First Pacific, the others being Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — SJT with Reuters
Nomination process open for senior Maharlika posts
THE Bureau of the Treasury (BTr) said it has started accepting nominations and applications for top positions in the Maharlika Investment Corp. (MIC), with the nomination deadline set for late September.
The positions to be filled are president and chief executive officer (CEO), independent directors, and regular directors, it said.
“Nominations and applications will close on Wednesday, Sept. 27,” the BTr said in an advisory on its website.
The MIC board will manage the Maharlika Investment Fund (MIF), a sovereign wealth fund.
In July, President Ferdinand R. Marcos, Jr. signed into law Republic Act No. 11954 or the Maharlika Investment Fund Act of 2023. The law’s implementing rules and regulations (IRR) were released this month and will take effect on Sept. 12.
The MIC board will be composed of the Finance secretary as ex-officio chair, the MIC president and CEO as the vice chair, the Land Bank of the Philippines president and CEO, the Development Bank of the Philippines president and CEO, two regular directors and three independent directors.
Under the IRR, the MIC president and CEO must have an advanced degree (MBA, MA, MSc, PhD) in finance, economics, business administration, or any related field from a reputable university.
The position also requires a minimum of 10 years in a senior leadership role in a “reputable financial institution or public or private sector organization.”
Regular directors must be Filipino citizens, at least 35 years old, of “good moral standing and reputation, of recognized probity and independence (with) substantial experience and expertise in corporate governance and administration, investment in financial assets, and/or management of investments in the global and local markets.”
The independent directors must have “probity, competence, expertise and experience in finance, economics, investments, business management, or law, and are able to contribute to the attainment of the objectives and purposes of the MIF.”
Regular and independent directors are both required to have a master’s degree in finance, economics, business administration and must have at least 10 years’ experience in finance, investment, economics, business, or any related field.
The list of nominees must be submitted to the Office of the President not later than 30 days from the effectivity of the IRR. — Luisa Maria Jacinta C. Jocson
Customs, PEZA sign info-sharing deal to monitor ecozone goods movements
THE Bureau of Customs (BoC) and the Philippine Economic Zone Authority (PEZA) have signed a data-sharing agreement to facilitate the tracking of goods moving in and out of economic zones.
“This landmark agreement is set to revolutionize the efficiency and security of trade and economic zone operations in the Philippines,” the BoC said on Wednesday.
The agreement gives PEZA access to the BoC’s Electronic Tracking of Containerized Cargo (E-TRACC) System.
First launched in 2020, the E-TRACC system allows the real-time monitoring of inland movements of containerized goods to make their transport more secure. The system can also detect diversion and tampering.
The partnership will allow for the “real-time monitoring of containerized goods and individuals within and outside economic zones.”
“This partnership promises to enhance efficiency, transparency, and security in cargo transportation to and from these zones. Key provisions of the agreement focus on data privacy, security, storage, and retention of confidential information,” the BoC added.
In a separate statement PEZA said the agreement also promotes compliance with Executive Order No. 18, which establishes green lanes to accelerate and streamline the processing of clearances for strategic investments.
“We firmly believe that sharing secure data with PEZA will enable us to coordinate our efforts and drive collective improvements toward seamless trade facilitation. This will pave the way for improved day-to-day operations and will further buttress our trade facilitation performance,” Customs Commissioner Bienvenido Y. Rubio said in a statement.
“We subscribe to the BoC’s objectives of trade facilitation as our way of enhancing the competitiveness of the Philippines for trade and investments. To do this, we believe that digitalization is the key, increased adoption of automation, so that we can enhance our ease of doing business and facilitate even more the movement of cargoes of our locators,” PEZA Director General Tereso O. Panga added. — Luisa Maria Jacinta C. Jocson
BCDA seeking Japanese tieups to develop Clark
THE Bases Conversion and Development Authority (BCDA) said it is seeking out potential partners from Japan to develop projects in the Clark area.
BCDA President and Chief Executive Officer Joshua M. Bingcang made presentations on the agency’s development projects in New Clark City, Clark Freeport Zone, and Clark International Airport at the 14th Japan-Philippines High Level Joint Committee on Infrastructure Development and Economic Cooperation in Tokyo.
“Together, we are shaping the future of urban living, leveraging technology, sustainability, and collaboration to pave the way for innovation and progress,” Mr. Bingcang said in a statement.
BCDA said the projects pitched to the Japanese were the 100-hectare mixed-use Clark Central Business District, 35-hectare residential complex in New Clark City in Tarlac, and the 22-hectare Clark International Convention and Exhibition Complex.
There are 10 Japanese companies currently operating in the Clark Freeport Zone.
BCDA has partnerships with Japan Overseas Infrastructure Investment Corp., Nippon Koei and Keio University, Kansai Electric Power Co., Inc., Chubu Electric Power, Marubeni group, New Energy and Industrial Technology Development Organization, and Zenmov, Inc. for various projects in Clark. — Justine Irish D. Tabile
Norwegian companies positive on PHL renewable energy policy
By Sheldeen Joy Talavera, Reporter
NORWEGIAN COMPANIES are viewing with interest the evolution of Philippine renewable energy (RE) policy, according to the Norwegian ambassador.
Christian Halaas Lyster, ambassador to Manila for the Royal Norwegian government, said the key is “a transparent and stable framework for activities within the various sectors… because that’s what the investors and businesses would like to have.”
“I think you’ll see that the current developments on the policy side have made it more interesting for companies — whether for hydro, floating solar, or offshore, onshore wind — for Norwegian companies,” he added.
He was speaking to BusinessWorld on the sidelines of a workshop on offshore wind.
Norway is Europe’s largest producer of hydropower. It is also a major producer of oil and gas from its North Sea fields, the wealth from which is helping finance its green energy transition, which includes the electrification of its transport system.
Mr. Lyster said the Philippine government “is moving in the right direction” and encouraged it to be collaborative with industry in drafting its regulations.
Developing the framework, regulations, and guidelines “should be done in a collaborative way where you listen to industry but also where you include all the different agencies that might have a stake in the framework,” he said.
In late 2022, the Philippine Department of Energy (DoE) obtained a legal opinion from the Department of Justice in support of exempting RE exploration, development, and utilization from the 40% cap on foreign ownership applicable to many enterprises.
The legal opinion paved the way for the revision of the Renewable Energy Act of 2008’s implementing rules and regulations (IRR), to allow 100% foreign ownership of RE projects.
Mr. Lyster noted that the RE industry, particularly offshore wind, will also require investment in specialized ports able to handle the equipment required.
“To get (the needed) scale for wind development, port development is necessary. Basically that will require bigger new ports,” the envoy said.
“There are ports that might have the potential but they need to be developed further,” he added.
“Norwegian companies have been a part of renewable energy sector in the Philippines since back in 2005… when Scatec ASA came in to work on the Magat Dam,” Mr. Lyster said.
Scatec operates in the Philippines via a joint venture with Aboitiz Power Corp.
Mr. Lyster commended the Energy Virtual One-Stop Shop scheme, which he said makes it convenient for companies to process their applications for permits.
The DoE plans to include local government unit-issued permits to the one-stop shop system.
The Norwegian and British Embassies in Manila, in collaboration with Global Wind Energy Council and Det Norske Veritas, had organized the two-day workshop on the offshore wind industry.
“The demand is already there. If countries are going to realize their renewable energy ambitions, thousands of new workers will be needed to construct and maintain new offshore installations,” Mr. Lyster said in a statement.
“The Philippines is perfectly situated to take advantage of this opportunity. We are here to help make that happen,” the ambassador said.
Wholesale price growth accelerates to 4.5% in July
WHOLESALE price growth of general goods accelerated to 4.5% in July from 4% in June, driven by the food, animal and vegetable oils, and manufactured goods segments, the Philippine Statistics Authority (PSA) reported on Wednesday.
The July reading of the general wholesale price index (GWPI) remained weaker than the year-earlier 8%, the PSA said, citing preliminary data.
The recent high for the indicator was 5% in May.
In the first seven months, the GWPI averaged 5.2%, down from 7.3% a year earlier.
“This could reflect the recent tightness in global supply for food items and energy,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail.
Among the eight commodity groups monitored by the PSA, four posted accelerated growth. Food prices rose 8.8% in July against 8.5% in June. Also posting higher growth were chemicals including animal and vegetable oils and fats (0.5% from -0.6%); manufactured goods classified chiefly by materials (5.2% from 5.1%); and miscellaneous manufactured articles (5.2% from 5.1%).
Price growth in beverages and tobacco eased to 7.5% from 7.6% while machinery and transport equipment prices growth was steady at 1.6% in July.
Price growth in crude materials, inedible except fuels, was -13.6% in July, against -23.5% the previous month, while price growth in mineral fuels, lubricants and related materials was -18.3%, against -20.5% a month earlier.
Price growth in Luzon exceeded the national average at 4.6% in July, from 4.1% a month earlier and 8.2% a year earlier.
The GWPI in Mindanao rose 4.3% in July, from 3.4% in June and 5.1% in the same period in 2022.
Growth in wholesale price in Visayas was 3.9% in July, compared to 3.5% the preceding month and 6.4% a year earlier.
China Banking Corp. Chief Economist Domini S. Velasquez said wholesale prices were bound to accelerate based on signals given off by the Purchasing Managers Index (PMI).
“In the August PMI report, manufacturers faced higher input costs, especially for fuel and raw materials. They may eventually pass this cost burden to customers through higher output prices. We may see prices of inputs remain elevated given upside pressures,” Ms. Velasquez said in a Viber message.
In the August S&P Global Philippines PMI contracted to 49.7 from 51.9 in July. The PMI is based on a scale of 50, with readings below that level indicating that the manufacturing is headed for a slowdown.
The PMI is a leading indicator for future manufacturing activity, being a measure of raw material volumes, which companies expect to process and put on the market in the coming months. High input prices can serve to dampen purchasing activity.
The August reading was the first in two years that the PMI came in below 50.
“Recent typhoons and expected rains will likely push up the cost of agricultural commodities. Oil prices could continue to rise given tighter global supply. Lastly, the prevailing weakness of the peso will make imports of raw materials more expensive,” Mr. Velasquez added.
In turn, wholesale price growth feeds into consumer price growth, signaling the future direction of headline inflation.
The PSA reported headline inflation in August of 5.3% against 4.7% in July and 6.3% in the same period last year driven by rising prices of rice, vegetables and fuel.
The August inflation reading also marked the 17th straight month of inflation exceeding the Bangko Sentral ng Pilipinas’ 2-4% target range.
“Given current developments, we could see GWPI leading the acceleration in CPI as price increases for GWPI tend to move ahead of CPI,” Mr. Mapa said. — Mariedel Irish U. Catilogo
Energy dep’t signals inspection plans to verify compliance with conservation law
THE Department of Energy (DoE) said it has drafted a circular calling for inspections to validate whether designated establishments (DEs) are compliant with the energy efficiency and conservation law.
The DoE said that it will organize a monitoring team to carry out the inspections to enforce Republic Act No. 11285, or the Energy Efficiency and Conservation (EEC) Act.
Under the law, the DoE is responsible for monitoring DEs’ energy management policies and related energy-efficiency and conservation programs.
“Conservation and efficient utilization of energy are among the major strategies of the government to realize energy self-sufficiency and reduce the environmental impact of energy generation and utilization, as outlined in the Philippine Energy Plan (PEP) and the National Energy Efficiency and Conservation Program (NEECP),” the DoE said.
The EEC monitoring team will visit establishments within office hours and in the presence of an authorized representative to evaluate DE’s energy management practices.
The inspection will come in three forms: routine inspection, complaint-related inspection, and by special order.
Routine inspections will be conducted every three to six months or as needed, while complaint-related inspection will be carried out in response to a complaint submitted to the DoE.
Meanwhile, a special-order inspection arises from written instructions issued to DEs by the director of the Energy Utilization Management Bureau.
A notice of inspection will be sent to DEs at least five working days before the visit.
“If the ECC Monitoring Team is refused access to the premises during the visit, the team shall include the record of the refusal and the reason for such in the site visit report,” the DoE said.
A show-cause order may be issued to a DE, “to rebut the alleged commission of the prohibited act upon determination that reasonable grounds exists.” — Sheldeen Joy Talavera
Regulator releases list of sugary items affected by tariff overhaul
THE Sugar Regulatory Administration (SRA) released a list of premix products with high sugar content which will be affected by changes to the tariff system and subject to import clearances.
Sugar Order (SO) No. 10, dated July 19 but released on Tuesday, outlines the amendments to rules governing the import of items for which importers must obtain a premix commodity release clearance (PCRC).
The tariff changes conform to the new Tariff Administration and Policy, including the ASEAN Harmonized Tariff Nomenclature 2022, the SRA said. The rule changes expand coverage to products with added sugar or other sweetening matter and those consisting of natural milk constituents.
The SRA listed flavored or colored syrups, other flavoring preparations; sugar syrups; chocolate confectionery in tablets or pastilles; and other products that will require a PCRC as these may contain “a considerable amount of sucrose.”
Excluded were other food supplements, fortificant premixes, and food supplements based on ginseng, which are deemed to have minimal levels of sucrose.
SO 10 called for the monitoring of imports of the commodities listed. Such imports are subject to random sampling for laboratory testing. — Sheldeen Joy Talavera
Farmers warn lower rice tariffs will put pressure on palay prices
FARMERS said the lowering of tariffs on imported rice will exert downward pressure on the farmgate price of palay, or unmilled rice, by an estimated P6 per kilogram.
In a statement on Wednesday, Federation of Free Farmers National Manager Raul Q. Montemayor estimated that the resulting reduction in farmer incomes could hit P120 billion per year.
He said the lost income will overwhelm any aid provided through the Rice Competitiveness Enhancement Fund (RCEF), a component of Republic Act No. 11203 or the Rice Tariffication Law. RCEF receives P10 billion a year from rice import tariffs.
On Tuesday, the National Economic and Development Authority (NEDA) said it is looking into temporarily reducing rice tariffs to help bring down the retail price of rice.
Headline inflation rose to 5.3% in August due to the spike in rice and fuel prices. In particular, rice inflation accelerated to 8.7% in August from 4.2% in July.
On Friday, President Ferdinand R. Marcos, Jr., imposed a price ceiling for rice — which took effect on Tuesday — via Executive Order No. 39.
Mr. Montemayor said retail prices continued to increase even after the government cut tariffs on rice from outside the Association of Southeast Asian Nations, to 35% in 2021 from 50% previously.
“Gains from tariff reduction are simply being captured by importers and traders, with minimal benefit to consumers, and at the expense of farmers,” he said.
“Besides, importers are bringing in mostly premium-grade rice which provide better profit margins, and not the regular milled rice that the poor usually buy,” he added.
He urged Mr. Marcos, who is also the Secretary of Agriculture, to hold proponents of the low-tariff policy accountable for the “damage they have inflicted on small farmers and the agriculture sector resulting from their past flawed prescriptions.”
Department of Agriculture price monitors reported that as of Tuesday, domestic well-milled rice was selling in Metro Manila markets for between P45 and P53 per kilo, while imported well-milled rice fetched P45.
Domestic regular-milled rice sells for between P41 and P52. — Sheldeen Joy Talavera