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Earnings data, digitalization news lift Security Bank stock

SECURITY BANK/BW FILE PHOTO

SHARES in Security Bank Corp. moved upward as market players assessed its latest earnings report as well as its partnership with Consolsys, the Malaysia-based automation company that will handle the listed bank’s move to go digital.

Data from the Philippine Stock Exchange (PSE) show Security Bank ranking 17th in value turnover with P556.09 million worth of 5.86 million shares changing hands from Nov. 21 to 25.

The bank’s shares closed at P96 apiece on Friday, up by 4.4% from its Nov. 18 close. For the year, the stock has decreased by 19.3%.

Joylin F. Telagen, research head at IB Gimenez Research Securities, said the stock’s movement was a continuation of its upward trajectory after the bank reported better-than-expected third-quarter and nine-month earnings.

“Coupled by Fed minutes that they might start to slow down the future increases, with possible 50 basis points increase in federal funds rate next month, Dec 13-14,” Ms. Telagen said in an e-mail.

Mercantile Securities Corp. Head Trader Jeff Radley C. See said in a separate e-mail that overall market sentiment pushed the listed bank’s share price higher.

“Last PSE Index rebalancing, SECB was taken out thus dropping to as long as P80,” Mr. See added, referring to Security Bank’s ticker symbol. “SECB is undervalued among the other actively traded banks.”

In July, the PSE announced changes in the composition of the local stock barometer, the PSE index or PSEi. Consunji-led Semirara Mining and Power Corp. replaced the bank in the main index starting on Aug. 8.

Meanwhile, Reuters reported that a “substantial majority” of policy makers at the US Federal Reserve agreed that it would “likely soon be appropriate” to slow the pace of interest rate hikes as debate broadened over the implications of the US central bank’s rapid tightening of monetary policy.

The meeting showed officials were satisfied that they could move rates in smaller, more deliberate steps as the economy adjusted to more expensive credit and concerns about “overshooting” seemed to increase.

Back home, reports last week said Security Bank tapped Consolsys to shift its branch banking management system to a state-of-the-art digital, cloud-based, omnichannel platform.

Under the partnership, the listed bank’s current tellering, lobby management, and signature verification system (SVS) are to be replaced with Mosaic Voyager.

Mosaic Voyager is a cloud-based omnichannel delivery system that reduces inefficiencies, increases overall productivity, and provides an avenue for increased touchpoints.

According to Security Bank, once the system has been fully implemented, the comprehensive and transformative system would enhance its capability to provide a truly differentiated experience for transacting customers, boost operational efficiency, and propel the bank forward in its digital banking transformation.

Ms. Telagen said that fundamentally, the news was taken positively by long-term investors because of its impact on future revenue streams.

However, she cautioned that the risk of stagflation still lingers.

For Mr. See, market players took the news positively.

“Very positive news as there are updates on their company and an institution wants to have more stake in their company,” he said.

Security Bank reported around a 34% increase in its attributable net income to P2.31 billion in the third quarter from P1.72 billion in the same period in 2021. Gross revenues grew by 11.5% to P10.18 billion from P9.13 billion in the same period last year.

The quarterly growth brought its nine-month attributable net income to P8.56 billion, up by 77% from P4.83 billion a year ago. Revenues climbed by 7.1% to P29.41 billion from P27.47 billion previously.

Ms. Telagen sees the bank’s earnings for the fourth quarter to reach P2 billion and expects attributable net income for the entire year to hit P10 billion.

She added the earnings expectations would depend on whether market players would consider investing or trading in the listed bank.

On a technical note, she said the bank had broken a long-term uptrend and is now on a downtrend. She added that “it’s much better to wait a bit and buy when it’s back to its long-term uptrend or breakout from the current downtrend. Trade or invest cautiously.”

Ms. Telagen pegged Security Bank’s support level at P77 while its resistance level at P124.

For Mr. See, the stock is currently trading at overbought levels.

“Investors will be seeing some profit taking possibly next week. Support levels are P93 and P88, while resistance levels are P100 and P104.” — Abigail Marie P. Yraola

Debt yields decline on dovish Fed

YIELDS on government securities (GS) went down last week due to dovish signals from the US Federal Reserve and following the release of the Treasury bureau’s borrowing plan in December.

GS yields, which move opposite to prices, dropped by an average of 11.15 basis points (bps) at the secondary market week on week, according to the PHP Bloomberg Valuation Service Reference Rates as of Nov. 25 published on the Philippine Dealing System’s website.

Treasury bills (T-bills) rose while Treasury bonds (T-bonds) retreated at the end of the trading week.

Yields on the 91-, 182-, and 364-day T-bills climbed by 5.65 bps, 11.36 bps and 2.75 bps to 4.1770%, 4.9237 and 5.0810%, respectively, to close the week.

Meanwhile, at the belly, rates of the two-, three-, four-, five-, and seven-year T-bonds fell by 5.86 bps (6.0066%), 12.29 bps (6.3366%), 14.7 bps (6.534%), 15.18 bps (6.6618%) and 15.87 bps (6.8822%), respectively.

The long end of the curve also declined as yields on the 10-, 20-, and 25-year debt dropped by 25.51 bps (7.2236%), 23.86 bps (7.6584%), and 29.12 bps (7.6226%), respectively.

Total GS volume reached P12.984 billion on Friday, lower than the P10.714 billion recorded on Nov. 18.

“Global bond yields continue to drop on dovish pivot bets. Locally, BTr’s (Bureau of the Treasury) December borrowing schedule is less than previous month, helping support bond prices,” the bond trader said in a Viber message.

Minutes of the Fed’s policy Nov. 1-2 meeting where they fired off a fourth straight 75-bp hike showed a “substantial majority” of policy makers agreed it would soon be appropriate to deliver smaller increases.

The Fed has raised rates by 375 bps since March to rein in elevated inflation. Its next meeting is on Dec. 13-14.

Meanwhile, the BTr plans to borrow P135 billion from domestic debt market in December, 37.2% lower than the P215 billion programmed for November. Broken down, it plans to raise P30 billion from T-bills and P105 billion from T-bonds next month.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail that local rates took their cue from global bond yields moving lower.   

“The move was sparked by expectations that US Fed policy rate hikes would continue but at a more measured pace,” Mr. Mapa said.

“The downshift in global yields was enough to push local yields lower,” he said.

Reuters reported last week that US Treasury yields went down following the release of the Fed meeting minutes.

The 10-year US Treasury yield fell to 3.65%, the lowest since Oct. 5.

“GS yields followed global bonds, while lack of supply next month helped market players ignore possible higher CPI (consumer price index) print for November,” the bond trader added.

For this week, the bond trader expects yields to continue seeing a downside bias, but this could be tempered by profit taking ahead of the release of Philippine November CPI data on Dec. 6.

Headline inflation stood at 7.7% in October. For the first 10 months, inflation averaged 5.4%, higher than the central bank’s 2-4% target but below its 5.8% forecast for the year.

The Bangko Sentral ng Pilipinas (BSP) has hiked borrowing costs by 300 bps since May to keep in step with the Fed’s tightening and temper rising inflation.

BSP Governor Felipe M. Medalla last week ruled out further outsized or off-cycle increases, but said they will need to keep on raising borrowing costs as the Fed’s tightening cycle continues. The Monetary Board’s next review will be held on Dec. 15. — Lourdes O. Pilar with Reuters

Style (11/28/22)

Large Uniqlo store opens at Ayala mall

AYALA Malls Manila Bay is now the home of the newest and biggest Uniqlo branch in Parañaque at 1,949 sqm. In celebration of its opening week, the store is extending limited offer prices exclusive to Uniqlo Ayala Malls Manila Bay customers until Dec. 1.  The branch carries a wide selection of Men, Women, Kids, and Babies items. Uniqlo Ayala Malls Manila Bay is located in Building B, Ground Floor, near the mall’s Lumbera Entrance. The store opens at 11a.m. Meanwhile, Ayala Malls Manila Bay recently announced the opening of more lifestyle brands from various categories. Those that have already opened include One Storage, a storage unit facility that has 24/7 storage access, security, and free insurance; and Food Wanderer, the country’s biggest food art display museum by the Philippine Amusement and Entertainment Corporation. Scheduled to open in 2023 are Landmark Supermarket and Department Store and Seda hotel.

M&S Christmas family pajamas collection

THIS Christmas, Marks & Spencer (M&S) offers matching pajamas for all ages. An array of fun prints and patterns are found on tops, bottoms, and nightshirts made from super-soft responsibly sourced cotton or cozy fleece fabrics. For this season’s sleepwear selection, M&S has re-introduced the character of Spencer Bear. Having been in the M&S family since the 1930s, he has been one of the brand’s most beloved icons. New styles include the jungle-inspired “Pawjama” sleepwear set, featuring playful animal prints. Add a festive touch by opting the classic pure-cotton checked pajamas, available for the entire family. Percy Pig fans will be happy with the choice of PJs available. Find the matching pajamas in M&S stores now. Shop in-store and earn Loyalty points through the M&S Philippines Viber Community at bit.ly/MSPH-VC. Shop selected styles launching online at www.marksandspencer.com.

Rustan’s Christmas gift suggestions

THROUGHOUT its 70 years, the art of gifting has been one of the core pillars of Rustan’s, a reflection of its expertise in luxury retail. This season, apart from the wide selection of luxurious offerings, the whole family gets to enjoy a day filled with wonder and fun. For gentlemen, check out the pieces from the newest additions to Rustan’s roster of menswear: Faherty, Onia, and Tailor Vintage which combine sophistication with modern trends. Special holiday discounts from Braun, Crep Protect, and Speedo are lined up. For the skin-care obsessive, there are anti-aging products like the new Clarins Super Restorative collection, La Prairie Skin Caviar Harmony, L’Occitane Immortelle, or Estee Lauder Advanced Night Repair Synchronized Multi-Recovery Gel-Cream. Toys for the big boys? Bring a piece of childhood back with a Montblanc x Naruto wallet, something fun, luxurious, and elegant that can last for years. On the other hand, the Discovery Shop and Prizmic and Brill offer bespoke pieces that can decorate and add personality to the library or home office. For coffee drinkers, maybe a coffee upgrade is just the thing, like a Breville, De’Longhi, Nespresso, or SMEG machine. Get a taste of the experience in an onsite coffee tasting every day at all Rustan’s department stores from Nov. 26 to Dec. 18. Choose the perfect whisky to give by trying it as The Dalmore, Tamnavaulin, and Shackleton will offer tastings at Rustan’s Makati on Dec. 3-4 and Dec. 17-18 from 3-7 p.m. Other brands that will host their own whiskey and wine tastings are Diageo whiskey brands at Rustan’s Shangri-La on Dec. 3-4, 17-18, and 21-22 from 3-7 p.m.; Philippine Wine Merchants will host a wine tasting every Saturday and Sunday until Dec. 18 at Rustan’s Makati, Shangri-La, and Alabang. Wondering what to get the kids? Ask Santa. Start things off by bringing the children to meet him, and find out what they want. Catch Santa at Rustan’s Makati on Dec. 18, Rustan’s Shangri-La on Dec. 11, Rustan’s Gateway on Dec. 10, Rustan’s Alabang on Dec. 3 and 17, and Rustan’s Cebu on Dec. 3, 10, 17, 18, and 23. Board game aficionados can play at Rustan’s Shangri-la on Dec. 3-4. Rustan’s also has gift wrapping, delivery, and alteration services. The store’s personal shoppers can assist customers in-store or through a call. Customers can also choose to send their gift list and Rustan’s personal shoppers will happily get things covered. To make presents even more special, give gifts a personal touch by choosing an embroidery, embossment, or engraving add-on. For more updates, specials, and events, visit www.rustans.com.

Puma opens new store in PHL

INTERNATIONAL sports company Puma continues its Southeast Asia expansion with the opening of a new store in the Philippines. This comes after opening their biggest flagship store in Southeast Asia at 313@somerset Singapore earlier this year. Set over a sales floor area of 309 square meters, the new Puma store is located on Level 2, Glorietta 3 in Makati. Situated at a prime location, Puma puts its spotlight on the latest campaigns of the season such as Slipstream worn by Korean K-pop group NCT127, and the award-winning running shoes Deviate Nitro 2. Consumers can also find LaMelo Ball’s MB.02 collection, Puma x Coca-Cola, and Puma x Pokémon, which are exclusively available in Puma Glorietta and PUMA.com. This new store embodies the “Puma Forever Faster Concept,” which brings together stylish technical sports categories, with a heavy emphasis on performance and sport-inspired lifestyle products in categories such as Football, Running and Training, Basketball, and Motorsports. Puma’s exclusive seasonal drops and the latest collection of urban clothing and athleisure apparel will be available at Puma Glorietta 3.

Kiehl’s offers gift sets for the holidays

KIEHL’S Philippines offering several holiday sets this year which cost collectively less than if the buyer bought the components separately. Now available are the Hydration Starter Kit for P1,785 (worth P2,100), Men’s Groom on the Go for P2,380 (worth P2,980), Cleanser and Toner Duo for P3,400 (worth P4,250), and Anti-Aging Essentials for P7,390 (worth P8,799). Men’s Groom on the Go includes Kiehl’s Ultra Facial Cream, formulated with Glacial Glycoprotein and olive-derived Squalane, which has a unique lightweight texture and lasting 24-hour hydration. The Cleansing and Toner Duo includes Kiehl’s Calendula Herbal-Extract Alcohol-Free Toner, which is effective in reducing redness and oiliness while improving the skin’s texture as fast as three days. The Anti-Aging set includes Kiehl’s Super Multi-Corrective Anti-Aging Cream, a face and neck cream powered by PhytoMimetic Vitamin A, Chaga Mushroom, and Hyaluronic Acid to address and fight the most common signs of aging. The gift sets are available at Kiehl’s stores and at Kiehl’s official Lazada flagship store this holiday season. For more information and updates regarding the latest Kiehl’s products, visit the official website at http://www.kiehls.com.ph.

Face oil For Besties

IT’S safe to say that skincare has always been a strong foundation for most friendships. From coming home following a fun night out to a regular weekend sleepover, capping off the night with a skincare routine has always been a staple for just about every friendship. For this holiday, treat your bestie with Kiehl’s Midnight Recovery Concentrate facial oil. The top-rated facial oil by Kiehl’s is formulated with quality ingredients such as Lavender Essential Oil and Evening Primrose Oil to help the skin appear more visibly smooth with a radiant glow.

Vitamin C Serum For You

OF COURSE, the holidays aren’t complete without rewarding yourself for all the hard work you’ve put in throughout the year. Pamper yourself and give your skin the ultimate skin-replenishing treatment with Kiehl’s Clearly Corrective Dark Spot Corrector. The dark spot corrector by Kiehl’s is formulated with top-of-the-line ingredients such as Activated C and buffered Salicylic Acid that visibly helps the skin reduce the appearance of a wide array of discolorations. If you’re looking to get rid of dark spots, hyperpigmentation, and post-acne marks, Kiehl’s Clearly Corrective Dark Spot Corrector is the way to go.

Gap’s holiday gifts and promos

GAP is expanding its gifting assortment in multiple product categories for the holidays. Gifts for the family include cute sweatshirts, classic denim, PJs, and accessories (even for dogs) and more. At the tail end of its Black Friday promo, on Nov. 28 its “buy 1 get 1” on sweatshirts plus 40% on all regular items. Gift suggestions for Christmas include logo sweatshirts that start at P725 for kids and babies and P1,650 for adults, and the sleepwear collection from P1,950. Collaboration pieces with Disney and Smiley will be available in-stores and online soon. Choose from a collection of hoodies, sweaters, beanies, and socks this December. There are Gap stores at Glorietta 4, Shangri-la Mall, SM Mall of Asia, SM Megamall, Trinoma, Alabang Town Center and Abreeza, Davao, or shop online at gap.com.ph.

Pond’s gives chance to win a limited edition NFT

GLOBAL skincare brand Pond’s is partnering with e-commerce platform Shopee to launch the interactive #PondsGlowStage at its Brand Spotlight Day on Nov. 28. #PondsGlowStage is a one-day only event that takes Shopee users’ online shopping experience to the next level through interactive games, exclusive promotions and discounts on Pond’s products and for the first-time ever, limited edition Non-Fungible Tokens (NFTs). The limited-edition artwork is exclusive to Shopee, which is also the e-commerce platform’s first foray into giving out NFTs as gifts with purchase. The NFT is an exclusive, first-of-its-kind digital collectible designed by artist Rifqi Ardiansyah. Customers who purchase P1,499 worth of Pond’s products during the #PondsGlowStage Day will have the chance to own one of only 1,000 #PondsGlowStage NFTs in the Philippines, which will give them access to exclusive benefits such as being the first to receive alerts on Pond’s latest product releases and best value deals in the future. Customers can redeem their NFTs by first registering on OurSong, a global NFT platform co-founded by R&B star John Legend. Once logged in, they need to input their redemption code, which will be issued to them via Shopee Chat, before they claim their exclusive NFT via OurSong’s Collection Page. Until Nov. 28, consumers can play the interactive Pond’s Glow Stage Catch Game and earn points to redeem special giveaways worth at least P1,650. Players must tap and hold the shopping basket to catch as many of the falling Pond’s products and elements they can within the time limit, all while avoiding harmful skin spots.

The 2022 shopITOOH Holiday Gift Guide

FOR this holiday season, shopITOOH came up with gift ideas for every room, with tips on what to give loved ones this holiday season. First, send a piece of art. A particular artwork that is distinctly Filipino is Ilang Ilang At Iba Pa by Alfred Galvez, a mixed-media floral painting. Secondly, lean into the recipient’s love of pets. The reversible Abacama Hand Woven Pet Bed is an option that happens to be Filipino-made and crafted with eco-friendly materials. The woven abaca used is also hand-dyed for that unique coloring that isn’t achieved by regular machine processing. Third, embrace the accent piece. Go for something like the Black Alien Bees Remix and the Temptation Gift Set. The former is a pillow cover that can really tie a living aesthetic together while the latter is a sleek collection that includes a lamp, wick-burner, metallic corolla diffuser and stopper, and a Sandalwood Temptation Purifying Scent. Fourth, go bigger with furniture for the festive home. The Raggio Divan, for instance, is an elegant accent chair that would fit into any classic Hollywood picture. If the recipient is a lover of cocktails and gatherings, there is the Prizmic & Brill Bar Cart that comes equipped with prep stations, drawers, bottle racks, and tray sections. Fifth, don’t be afraid to blend practicality and style., like the Seletti Hybrid Aglaura Glass Set which comes with three unique Italian hand-blown and painted glasses, or the marble Mendo Candle Holder which is chic yet durable and readily usable, or the Malabulak Sculpted Blossom Lamp, a limited edition high-polish titanium brass gold body with hand-sculpted floral leather detailing. Sixth, you can’t go wrong with a gift card. The ITOOH Homestyle Gift Card comes in values of P1,000, P3,000, P5,000, and P10,000. ITOOH’s Homestyle Holiday Sale features more items and other goods for living, bed & bath, dining & kitchen, and kids and more all at up to 70% off. The shopITOOH Christmas Sale runs from Nov. 30 to Dec. 18, with major discounts, free delivery, and zero installment options. For more information, browse the website (www.shopitooh.com).

Shop for a chance to win a Suzuki Jimny

SHOP at the Shangri-La Plaza for a chance to bring home a brand-new Suzuki Jimny this Christmas. Get a chance to win a brand-new off-roader Suzuki Jimny GLX with the Drive Home a 4WD with the Christmas Holidaze Raffle Promo which is ongoing until Jan. 31, 2023. To join, shop at any Shang store with a single receipt of P2,500 to get one digital raffle coupon. Shang is giving away three Suzuki Jimny GLX 1.5L A/Ts, one in Solid Kinetic Yellow and two in classic Metallic Chiffon Ivory. The promo is open to mall guests of at least 18 years of age with a Philippine address. To redeem the Digital Raffle Coupon, mall guests should scan the QR code at the Concierge or go to the website raffle.shangrila-plaza.com/raffle to submit their personal information. An e-mail will be sent back to confirm their raffle entry. The Grand Raffle Draw will be on Feb. 2, 2023, 5 p.m., and the winners will be announced on Shang’s website.

Uniqlo presents special holiday offers

GIFT giving comes easy this holiday season as Japanese global apparel retailer Uniqlo has offers, novelties, and events throughout November and December. Personalize gifts with the Holiday Gift Charms. It comes in three designs — a Gift Box, Christmas Tree and a Christmas Stocking, all with a space to write a message at the back. Available in-stores when customers get a paper bag or a gift bag along with their purchase. Customers can complete their Christmas shopping lists with mega sales. The Thank You Festival is ongoing until Dec. 1 while the 12.12 Shopping Fest will be held from Dec. 9 to 15. Uniqlo has also started distributing one-of-a-kind novelties during its key events. This includes a three-piece travel organizer, a cable organizer, and the Uniqlo Planner. Families can join the Kids Gift Giving Day on Dec. 1 at Uniqlo Westgate Alabang, where children can select items they’d like to give to their loved ones, and a child in need. To join, download the Uniqlo App where sign-ups would open towards the latter part of November. Followers can shop for LifeWear pieces in real-time on the livestream of Live Station Episodes for Thank You Festival on Nov. 25 and 12.12 on Dec. 9. For more updates, visit Uniqlo Philippines’ Holiday feature page at https://www.uniqlo.com/ph/en/spl/holiday-gifting and download the Uniqlo App via Google Play Store and Apple Store.

In South America’s Andes, farmers pray for rain to end drought

REUTERS

TIHUANACU, Bolivia — High in the mountains of the Bolivian Andes, farmer Alberto Quispe has one thing on his mind: rain.

In the rural area of Tihuanacu, around 100 kilometers (62 miles) south-west of highland city La Paz, locals say there has been little rain this season during a dry spell across the Andean regions due to a third straight La Niña weather pattern.

“When we raise our hands, we ask God to forgive us our sins and to ask for rain for our crops, because in the fields we don’t have water, nor for the cattle,” said Mr. Quispe, who climbed into the hills with community members to pray for rain.

Around Bolivia, many areas have declared an emergency due to the drought, which Bolivia’s National Meteorology and Hydrology Service expects will last until 2023, when the intensity of the La Niña is expected to wane.

The drought has hit crops in Bolivia as well as in Argentina, Paraguay and Peru. Mr. Quispe and others climbed Lloco Iloco hill with their evangelical shepherd to ask for rain from both God and the local indigenous Aymara mountain deities, or Achachilas, raising hands to the skies while on their knees.

Just across the Bolivian border with Peru, the situation in similar. “The sun is burning, it’s very strong, one can’t even walk anymore, the heat in the countryside is even worse, and we don’t have water either,” said Rosa Sarmiento from Desaguadero in Peru near the banks of the mighty Lake Titicaca. “All the people are very worried.”

In the Andean regions, drought in recent years has caused falling water reservoir levels in places like Chile and led to important glaciers retreating. Drought has hit crops like wheat and soy, including this year in major grains producer Argentina.

In the village of Zapana Jayuma in Bolivia, the arid fields show clear signs of heat damage. “The land is very dry and we have not been able to plant potatoes, broad beans, or yams,” said Cecilia Aruquipa, community manager in the area. “The heat is very strong and burning, we can no longer bear it, that is why we all go where there is shade because the heat is so intense.” — Reuters

Hyundai Modern PUV units to ply Baguio routes

New units of the Hyundai Modern PUV are blessed at the BTRAMODA Terminal in Irisan, Baguio City. — PHOTO FROM HARIPHIL ASIA RESOURCES, INC.

THE BAMAPCOM Entrepreneurs Multipurpose Cooperative recently welcomed its new fleet of 31 Hyundai Modern PUVs at the BTRAMODA Terminal in Irisan, Baguio City. The vehicles are slated to ply the Trancoville-Magsaysay Plaza-SM Baguio Route. Attending the turnover were officials from the local government; the Land Transportation Franchising and Regulatory Board; Land Transportation Office; Land Bank of the Philippines; and representatives of Hariphil Asia Resources, Inc. (HARI).

“We are proud that our HD50S Modern PUV has met the power output demands of the area’s mountainous terrain. This is proof that our engine is best in class. And we thank our growing number of partners from government and local communities for trusting in the safety, comfort, and reliability of the Hyundai Modern PUV,” said HARI President and CEO Maria Fe Perez-Agudo.

The Baguio City turnover now adds to the over 500 units of the Hyundai Modern PUV deployed by various transport cooperatives across the country.

Last October, HARI successfully turned over a fleet of Modern PUVs to the Cebu South Bound Transport Service Corp. (CSB TSC).

How PSEi member stocks performed — November 25, 2022

Here’s a quick glance at how PSEi stocks fared on Friday, November 25, 2022.

Peso may continue to strengthen against the dollar ahead of key data

THE PESO is expected to strengthen versus the dollar this week ahead of the release of the latest Philippine manufacturing data and expectations of easing inflation.

The local unit closed at P56.67 per dollar on Friday, strengthening by 11 centavos from its P56.78 finish on Thursday. 

Week on week, the peso appreciated by 59 centavos from its P57.26 close versus the dollar on Nov. 18.

The peso opened Friday’s trading session at P56.73 per dollar. Its weakest showing was at P56.84, while its intraday best was at P56.65 against the greenback.

Dollars exchanged decreased to $849 million on Friday from the $868.5 million seen on Thursday.

The peso strengthened on Friday after the release of strong “hot money” data, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in an e-mail.

Foreign portfolio investments posted a net inflow of $83 million in October, a turnaround from the $367.3-million net outflow seen in September.

It was also a reversal of the $221.11-million net outflow in the same month a year ago.

Mr. Ricafort said the local currency was also supported by gains at the local stock market on Friday.

The benchmark Philippine Stock Exchange index rose by 76.43 points or 1.17% to close at 6,606.94 on Friday. This marked the fourth straight day that Philippine shares ended in the green.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail that the minutes of the US Federal Reserve’s latest meeting also affected peso-dollar trading.

Minutes of the Fed’s policy meeting this month showed that a “substantial majority” of policy makers agreed that it would slow the pace of rate hikes for the remainder of the year.

The US central bank has raised rates by 375 bps since March, bringing the fed funds rate to a 3.75-4% range.

The Fed will next update its interest rate and economic forecasts at their policy meeting on Dec. 13-14.

For this week, industry players will watch out for the release of the S&P Global Philippines Manufacturing Purchasing Managers’ Index report on Dec. 1, Mr. Ricafort said.

Mr. Asuncion said the market is also waiting for latest data to see if inflation has peaked to help sustain the recovery of local risk appetite.

Philippine headline inflation accelerated to a near 14-year high of 7.7% in October.

In the first 10 months, inflation averaged 5.4%, still lower than the central bank’s 5.6% full-year forecast but higher than its 2-4% target.

November inflation data will be released by the Philippine Statistics Authority on Dec. 6.

Mr. Ricafort gave a forecast range of P56.30 to 56.90, while Mr. Asuncion expects the local unit to move within a weaker range of P56.70 to P57 per dollar. — Luisa Maria Jacinta C. Jocson

Shares may drop on profit taking, lack of leads

BW FILE PHOTO

LOCAL EQUITIES are expected to trade with a downward bias this week as investors are expected to pocket their profits as they await fresh catalysts.

The bellwether Philippine Stock Exchange index (PSEi) gained 76.43 points or 1.17% to end at 6,606.94 on Friday, while the broader all shares index went up by 30.40 points or 0.88% to 3,452.44. 

Week on week, the PSEi rose by 169.56 points or 2.63% from its close of 6,437.38 on Nov. 18.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message that the PSEi went up on Friday on expectations that the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP) will deliver smaller rate hikes moving forward.

Minutes of the Fed’s Nov. 1-2 meeting, where they delivered a fourth straight 75-basis-point (bp) hike, showed a “substantial majority” of policy makers agreed it would soon be appropriate to look at smaller increases.

The US central bank has raised rates by 375 bps since March in its fight versus inflation, bringing the fed funds rate to a 3.75-4% range. Its next meeting is on Dec. 13-14.

Meanwhile, the BSP on Nov. 17 raised benchmark interest rates by 75 bps to rein in rising prices, bringing the policy rate to 5%, the highest in nearly 14 years. It has hiked by 300 bps since May.

BSP Governor Felipe M. Medalla last week ruled out further outsized or off-cycle increases, but said they will need to keep on raising borrowing costs as the Fed’s tightening cycle continues. The Monetary Board’s next review will be held on Dec. 15.

“The PSEi climbed above 6,600 level as foreign investors continued to flock into the Philippine market in hopes of a potential year-end rally and amidst sustained appreciation of peso against the dollar,” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message.

The peso last week returned to the P56-per-dollar level for the first time in two months and closed at P56.67 on Friday, up 11 centavos from its P56.78 finish on Thursday, Bankers Association of the Philippines data showed.

“The local market exhibited weakness on Monday given high selling pressure, but capped off the week on a strong note, closing above the critical 6,600 resistance level,” China Bank Securities Corp. Research Director Rastine Mackie D. Mercado said in an e-mail on Friday.

For this week, Mr. Mercado said the market may move sideways as investors are expected to pocket gains from the market’s rise and amid a lack of catalysts.

“We maintain our view that the prevailing bullish momentum may begin to lose steam on lack of major catalysts. We still think that the market is due for a pullback as hefty accumulated gains made over the past six weeks may prompt wider profit taking,” Mr. Mercado said. 

Meanwhile, AP Securities’ Mr. Temporal said investors will likely take cues from the US market.

Mr. Temporal placed the index’s support and resistance at 6,400 and 6,700, respectively, while online brokerage 2TradeAsia.com put the PSEi’s support at 6,400 and resistance at 6,800. — Ashley Erika O. Jose

National Government fiscal performance

The National Government’s budget deficit ballooned to P99.1 billion in October, as state spending outpaced revenue collections, the Bureau of the Treasury (BTr) reported on Friday. Read the full story.

National Government fiscal performance

Mbappé powers France into last 16 after win over Denmark

KYLIAN MBAPPÉ — PHOTO BY LAURENT ZABULON/ABACAPRESS.COM/REUTERS

Lionel Messi, Argentina  keep World Cup dream alive

DOHA — Kylian Mbappé crowned an exhilarating individual performance with two second-half goals to make champions France the first side into the last 16 of the World Cup as they beat Denmark 2-1 in their Group D clash at the 974 Stadium on Saturday.

Mbappé’s goals sent France top the group on six points, three ahead of Australia, who beat Tunisia 1-0 earlier in the day, with the Danes and the Tunisians both on one point.

“The first objective has been achieved,” French coach Didier Deschamps said of their qualification in a post-match TV interview. “This group is strong, solid and wants to achieve great things.”

France take on Tunisia and Denmark meet Socceroos in the final round on Wednesday, with the Danes needing a win to advance.

Having lost twice to Denmark during the recent Nations League campaign, France started cautiously. But it was not long before they realized there were opportunities to be had by taking on the Danish wing backs.

Ousmane Dembele tormented Joakim Maehle and a wave of excitement swept around the stadium, which is made out of 974 recycled shipping containers, every time Mbappé got one-on-one with Rasmus Kristensen on the other flank.

The first half saw France enjoy the better chances as Adrien Rabiot went close with a header and Denmark were forced into a number of last-ditch blocks, but the Danes did go close with an Andreas Cornelius shot that flew just wide.

Their defensive resilience was not to last and Mbappé put the French ahead in the 61st minute, crowning a superb high-speed French counter with a bouncing first-time finish from Theo Hernandez’s clever pull-back.

Neither side seemed content with a draw and Rabiot fired a spectacular volley over in the 80th minute, and a minute later Denmark substitute Martin Braithwaite fired a first-time effort of his own just wide of the near post.

The game looked set to end in a stalemate until Mbappé popped up in the 86th minute at the far post to cushion home an Antoine Griezmann cross from close range to restore the lead to send the traveling French fans into raptures.

Denmark threw everything forward looking for a second equalizer, leaving acres of space at the back, but their late attacks lacked precision and the French held on for the win that put them through.

Mbappé’s brace took his international total to 31 in 61 games for France, putting the 23-year-old level with Zinedine Zidane and 20 goals behind Olivier Giroud and Thierry Henry, France’s joint record goal-scorers.

The French will face one of the teams from Group C — Poland, Saudi Arabia, Mexico or Argentina — in the last 16.

ARGENTINA 2, MEXICO 0
Lionel Messi kept Argentina’s World Cup hopes alive by scoring the opening goal against Mexico from 20 yards out in the 64th minute.

Enzo Fernandez finished off the critical Group C victory with a curling shot in the 87th minute.

After a shocking 2-1 loss to Saudi Arabia in their opener, Argentina is now one point behind group leader Poland. Argentina and Poland will meet on Wednesday.

With just one point, Mexico must beat Saudi Arabia on Wednesday to have a shot at advancing to the knockout stages.

POLAND 2, SAUDI ARABIA 0
Piotr Zielinski and Robert Lewandowski each scored a goal to lift Poland over Saudi Arabia in Group C action. Zielinski scored in the 39th minute and Lewandowski doubled the advantage in the 82nd for Poland, which has four points in two matches. It will need just one point in its final match against Mexico to advance to the next round. Lewandowski’s goal was his first in the World Cup in nine career matches.

AUSTRALIA 1, TUNISIA 0
Mitchell Duke scored in the 23rd minute to fuel Australia, which recorded its first World Cup victory in 12 years.

Duke’s header slipped past goalkeeper Aymen Dahmen to give the Aussies all that they needed to win their Group D match. — Reuters

Ateneo eyes top-seed finish at end of elimination round of Season 85

THE BLUE Eagles on Saturday got payback on rival and reigning champion UP with a 75-67 win. — UAAP MEDIA

CLINCHING a twice-to-beat bonus in the Final Four is not the end goal for Ateneo as it eyes to go all the way with a top-seed finish at the close of the UAAP Season 85 elimination round to shore up its title redemption bid.

The Blue Eagles on Saturday got payback on rival and reigning champion University of the Philippines (UP) with a 75-67 win that put them in a good position to snatch the No. 1 spot after all entering the semifinals.

Ateneo, the former three-time champion, is now at 10-3 after that big win and another triumph against Adamson in its last assignment on Wednesday would push them ahead after playing catch-up to UP (11-3) all season long.

“I still think UP is the team to beat. But I think we showed that we belong at, or near the top,” said coach Tab Baldwin as Ateneo finally scored on UP in the last four matches including the historic Season 84 finals and a close 76-71 overtime loss in the first round.

“It’s a huge affair on Wednesday (against Adamson). It allows us to finish on top of the table and I don’t think many people would have expected that at the beginning or in the middle of the season,” he added.

In the majority of the elimination round, the shaky Ateneo side was actually lurking at just third place behind UP and National University (NU) before peaking at the right time with now the league’s longest streak at five games.

Ateneo’s timely rise paired with the unfortunate skid NU, which kept a stranglehold of No. 2 for then a steady twice-to-beat bid before losing two straight set the stage for the former to squeak in on top with a perfect shot to strike the No. 1 seed.

UP, the top-ranked team all season long, already clinched the other semis incentive as early as last week and a sure Top-2 finish regardless of the results of the last playdate on Wednesday featuring Ateneo against Adamson and De La Salle versus Santo Tomas.

Huge implications are also at stake for Adamson University (7-6) and De La Salle (6-7) in the crucial matches to determine the winner of the last and fourth ticket to the Final Four or a necessary knockout match by virtue of tie for No. 4. — John Bryan Ulanday

HD Spikers, Bierria shock Cool Smashers in four sets, 23-25, 25-23, 28-26, 25-18

TAI BIERRIA unloaded a match-high 21 points while presiding over her team’s net defense with three blocks. — PHILIPPINE STAR/JUN MENDOZA

Games Tomorrow
(PhilSports Arena)
2:30 p.m. — Petro Gazz vs Cignal
5:30 p.m. — Chery Tiggo vs Creamline

CIGNAL leaned on its nearly impenetrable net defense and took advantage of an out-of-sync Creamline import Yeliz Basa as it eked out a shock 23-25, 25-23, 28-26, 25-18 victory yesterday to move on the cusp of a breakthrough finals appearance in the PVL Reinforced Conference.

Tai Bierria unloaded a match-high 21 points while presiding over her team’s net defense with three blocks as the HD Spikers nailed their second straight win and jumped closer to advancing to the best-of-three finals unfolding Thursday.

It also silenced the predominantly Cool Smashers crowd at the Smart Araneta Coliseum.

It was an upset of sorts for Cignal, which barely made the semifinals as the No. 4 seed, against a franchise that is not only the top seed but also the heavy favorite to win it all and essay a historic Grand Slam.

A win for the HD Spikers tomorrow at the PhilSports Arena against the Petro Gazz Angels would seal their first finals appearance since joining the country’s only pro volley league last year.

“I feel like this team is characterized by our ability to keep getting better and better, it’s really amazing,” said an ecstatic Ms. Bierria.

Cignal’s re-emergence as a legitimate title contender was helped with Ms. Basa playing a little off after the Turk was benched in the whole fourth set and wound up with just 17 points.

Creamline skipper Alyssa Valdez, who paced her team with 20 hits, and the Cool Smashers tried to turn the tide in their favor by going Ms. Basa-less in the fourth set but it was not enough to weather the Cignal storm.

The Cool Smashers fell to 1-1 and would need nothing less than a win versus Chery Tiggo in the last semis play date to have a chance at barging into the finals and gaining a crack for that rare Grand Slam.

Ms. Basa actually started strong and Creamline was in control early as it had some chances to snare the third set and a 2-1 set lead.

But the Cool Smashers unraveled against the HD Spikers’ rock solid net defense that allowed the latter to snatch the set instead.

It was all Cignal need to break the hearts and spirit of Creamline, which decided to go all-Filipino but to no avail. — Joey Villar

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