Magsaysay-Ho fetches P26M at auction

July 6, 2022 | 12:02 am

Scenes-from-the-sale-of-the-record-breaking-Anita-Magsaysay-Ho-(1) — Anita Magsaysay-Ho’s Women Fishing (1971) was hammered at P26,864,000 at Salcedo Auctions’ recent sale.

SALCEDO Auctions recorded a clearance rate of nearly 90% of artworks sold at its Finer Pursuits live and online auction held on June 25. The auction featured important Philippine art as well as a curated collection of Philippine furniture and antiques, valuable timepieces, decor, and other rare collectibles.

The highlight of the sale, a 1971 Anita Magsaysay-Ho painting titled Women Fishing, was hammered at P26,864,000 — over twice its published estimate and the highest price for a work by the artist in her distinctive “ink blot” style.

National Artist for Visual Arts Benedicto “BenCab” Cabrera’s rare London-period 1969 work from his Scavenger series sold for P4,088,000.

Ramon Orlina continued to have strong results with Flight of the New Frontiers selling at P4,672,000. Two major watercolor artworks of National Artist for Visual Arts Vicente Manansala’s Planting Rice sold at P2,569,600 and National Artist Botong Francisco’s Untitled (Battle of Mactan) sold for P1,051,200. Objects VII (1967) by Roberto Chabet sold at P1,752,000.

Items sold online and through phone bidders include Michael Cacnio’s Untitled (Boy Reading) whose price rose quickly to P385,440 from a starting bid of P50,000.

Lao Lianben’s Light sold at P700,800; Mauro “Malang’ Santos’s Untitled (Bamboo) sold at P1,284,800 to a determined gentleman who bid live from the sale room.

The afternoon yielded more impressive outcomes for the works of National Artists Ang Kiukok and J. Elizalde Navarro, both of whose paintings’ prices soared. Kiukok’s Reclining Figure sold at P9,928,000, while Navarro’s Summer Storm sold at P2,102,400.

Consignments to Salcedo Auctions’ forthcoming marquee September auction The Well-Appointed Life are being accepted. Visit salcedoauctions.com/getting-started/sell or e-mail info@salcedoauctions.com

BTr fully awards reissued bonds at higher rates

July 6, 2022 | 12:02 am

THE GOVERNMENT fully awarded its offer of reissued seven-year Treasury bonds (T-bonds) on Tuesday at higher rates on expectations of a hawkish move from the Bangko Sentral ng Pilipinas (BSP) as June headline inflation was at a near four-year high.

The Bureau of the Treasury (BTr) raised P35 billion as planned from its auction of reissued seven-year securities that have a remaining life of three years and seven months on Tuesday, with total bids reaching P56.236 billion.

Rates awarded ranged from 5.6% to 5.999%, bringing the average rate for the bonds on offer to 5.908%, 117.6 basis points (bps) higher than the 4.732% fetched for the series when it was last offered on Jan. 21, 2020.

The average rate seen for the tenor on Tuesday was also 33.47 bps higher than the 5.5733% quoted for the four-year bonds, the benchmark closest to the remaining life of the papers on offer, at the secondary market before Tuesday’s auction, based on the PHP Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

Meanwhile, it was 55.63 bps lower than the 6.4643% fetched for the seven-year tenor at the secondary market before the auction.

National Treasurer Rosalia V. de Leon said in a Viber message to reporters after the auction that the average rates of the bonds auctioned off on Tuesday were higher than the secondary market level as investors priced in expectations of the BSP turning hawkish as June headline inflation came in slightly higher than consensus.

Asked if the BTr would be willing to award at rates higher than usual if inflation continues to pick up, Ms. De Leon said they would have to adjust during their auctions.

“We will have to calibrate. If cash remains ample and rates exceed our tolerance level, then we will reject. Always a careful balancing act,” she said.

The first trader said they think the BTr was forced to award at a higher rate and was “quite aggressive” as the faster June inflation print caused market players to demand higher yields.

“The bond was trading around 5.75%. So, with the bond maturity [on Monday], there was some hope that the awarded rates will be at the low end of the expected range,” the first trader said, referring to three-year papers worth P103.6 billion that matured on July 4.

The second trader said the auction result was “just as expected,” although the average rate was higher than the last done deal at the secondary market but still in line with their forecast range.

“Of course, we had to consider inflation data in the months to come along with BSP’s monetary tightening path,” the second trader added.

Headline inflation in June surged by 6.1% year on year from 5.4% in May and 4.1% a year ago amid higher food and transport costs, preliminary data from the Philippine Statistics Authority released on Tuesday showed.

This is slightly higher than the 6% median estimate in a BusinessWorld poll conducted last week and marked the third consecutive month that inflation went above the BSP’s 2-4% target for the year. Still, it settled within the 5.7%-6.5% estimate of the central for the month.

The June headline print is a near four-year peak, matching the pace recorded in November 2018 and was the fastest since the 6.9% logged in October 2018.

Year to date, inflation has averaged 4.4%, higher than the 4% seen in the same period a year ago but lower than the central bank’s 5% forecast for the year.

The BSP Monetary Board has raised benchmark interest rates by a total of 50 bps so far this year, via 25-bp hikes at its May 19 and June 23 meetings, bringing the policy rate to 2.5%, to help temper rising prices.

On Tuesday, BSP Governor Felipe M. Medalla said in a Bloomberg Television interview that a hike of at least 25 bps is guaranteed at their Aug. 18 meeting, but he is also open to a bigger increase of up to 50 bps.

He said the central bank may raise rates by “at least 100 bps more” in the rest of its meetings for the year to bring cumulative hikes for 2022 to 150 bps, as the policy rate needs to be higher than the 3% midpoint of their 2-4% inflation target.

Mr. Medalla said the need to normalize its policy settings has become “more urgent” amid supply shocks and developments in advanced economies. This has made the BSP advance the implementation of its exit plan, which was originally planned to begin in the third or fourth quarter, he said.

The Monetary Board has four more meetings scheduled for the year to be held on Aug. 18, Sept. 22, Nov. 17 and Dec. 15.

For July, the BTr wants to raise P200 billion from the domestic market, or P60 billion via Treasury bills and P140 billion from T-bonds.

The government borrows from local and external sources to help fund a budget deficit capped at P1.65 trillion this year, equivalent to 7.6% of gross domestic product. — Diego Gabriel C. Robles

Headline inflation rates in the Philippines

July 6, 2022 | 12:02 am

INFLATION climbed to its highest level in nearly four years in June, further eroding the purchasing value of the peso to a record low, the Philippine Statistics Authority (PSA) said on Tuesday. Read the full story.

Converge says investors demand climate-related information

July 6, 2022 | 12:02 am

LISTED fiber internet service provider Converge ICT Solutions, Inc. said it is working to increase transparency in sustainability reporting, as more investors seek climate-related information.

“Increasingly, investors are demanding climate-related information to enable them to make informed decisions,” Converge Chief Strategy Officer Benjamin B. Azada said in an e-mailed statement on Monday.

The company said it supports the international Financial Stability Board’s Task Force on Climate-Related Financial Disclosures (TCFD) “to prepare for climate-related risks and, on a larger scale, mitigate its impact on the environment.” The TCFD provides climate-related financial disclosure recommendations.

“By progressively adopting TCFD’s recommendations over time, we will get better at disclosing the specific climate-related risks and opportunities facing Converge,” Mr. Azada said.

More than 3,000 companies globally support disclosing climate-related risks and opportunities, according to the company. The objective is to strengthen the stability of the financial system.

“Better climate-related disclosures will lead to better information that will allow companies to incorporate climate-related risks and opportunities into their risk management, strategic planning and decision making processes,” Converge said, citing the TCFD.

“Investors, insurance underwriters and lenders will make sounder financial decisions as well.”

“With a better understanding of the financial implications of climate change, both the company and its investors may be able to affect markets to channel investments in more resilient and sustainable business models,” it also said.

Converge Chief Executive Officer and Co-Founder Dennis Anthony H. Uy noted that supporting the TCFD means the company will be able to better plan for the future and manage risks.

“The Philippines is one the most vulnerable countries to climate change. Sea level rise, stronger and more frequent typhoons, and rising temperatures will all have an impact on our business and on the Filipino people,” he added.

The company plans to embark on readiness assessment and gap analysis against the recommendations from the TCFD. — Arjay L. Balinbin

Lady Stags outclass Red Spikers in five-set thriller

July 6, 2022 | 12:01 am

SAN Sebastian College – Recoletos (SSC-R) showed its mastery of the fifth set as it edged San Beda in a marathon 25-21, 23-25, 30-32, 25-23, 15-13 victory on Tuesday and closed in on a Final Four spot in Season 97 NCAA volleyball at the Paco Arena.

Super rookie Kath Santos went on a spiking frenzy as she unleashed a career-high 24 points including a whopping 22 on kills to power the Lady Stags to a 5-2 record and a win away from barging into the semifinals alongside College of St. Benilde’s (CSB) Lady Blazers and Arellano University’s Lady Chiefs.

SSC-R would have to hurdle though at least one of its last two outings against Lyceum of the Philippines University on Friday and Letran on Sunday.

It was also the third victory out of the four five-set duels that the Lady Stags have gone through, underscoring their ability to handle the tremendous pressure of such nerve-wracking games.

SSC-R also had to rally from a 1-2 set down, a five-point deficit in the fourth set and an 8-10 disadvantage in the fifth and deciding set to snatch the come-from-behind triumph.

SSC-R coach Roger Gorayeb said they needed games like these to toughen up his wards.

“The girls still have a very low confidence level and still lacked exposures. Hopefully, these tough games would help them get that confidence,” said SSC-R coach Roger Gorayeb.

The Lady Red Spikers slipped to 2-5. — Joey Villar

COVID-19 vaccine boosters

July 6, 2022 | 12:01 am

BOOSTER SHOT — PHILIPPINE STAR/ MICHAEL VARCAS

The Department of Health (DoH) earlier confirmed the local transmission of Omicron subvariant BA.2.12.1. Cases have been detected in the National Capital Region, Western Visayas Region, and Puerto Princesa City.

This means that local cases have been detected that cannot be epidemiologically linked to cases with significant international travel history.

The most recent evidence indicates that Omicron BA.2.12.1 is highly transmissible due to additional mutations, compared to the original Omicron strain. While this sublineage has so far not been observed to lead to more severe disease or fatality, it has the potential for immune escape, the DoH cautioned.

Should a variant of concern (VOC) enter the country, the DoH warned that expert projections indicate a possible rise and peak in coronavirus disease 2019 (COVID-19) cases, especially with the low booster coverage in the eligible population. As such, the Health department urged all eligible Filipinos to get their booster shot, as immunity is proven to wane over time.

According to the US Centers for Disease Control and Prevention (CDC), COVID-19 vaccine boosters can further enhance or restore protection that might have decreased over time after a person receives his or her primary series vaccination.

People are protected best from severe COVID-19 illness when they stay up to date with their COVID-19 vaccines, which includes getting all recommended boosters when eligible. “It is never too late to get the added protection offered by a COVID-19 booster,” the CDC said.

Since late last year, the DoH has been administering the first and second booster doses to frontline health workers, senior citizens (age 60 and above) and moderately or severely immunocompromised adults.

People are considered to be moderately or severely immunocompromised, or have a weakened immune system, due to several types of conditions and treatments.

These include individuals who have been receiving active cancer treatment for tumors or cancers of the blood; received an organ transplant and are taking medicine to suppress the immune system; received chimeric antigen receptor (CAR)-T-cell therapy (a treatment to help your immune system attach to and kill cancer cells) or received a stem cell transplant (within the last 2 years); have moderate or severe primary immunodeficiency (such as DiGeorge syndrome, Wiskott-Aldrich syndrome); have advanced or untreated HIV infection; and are on active treatment with high-dose corticosteroids or other drugs that may suppress their immune response. Consult your doctor about COVID-19 vaccination and your medical condition.

This June, the DoH announced its plan to administer the first booster (third dose) of a COVID-19 vaccine for all adolescents ages 12–17 years old at least five months after the second dose of the primary series, regardless of the brand of the primary series vaccine.

This follows the vaccination of the immunocompromised from the same population group, which started recently. The DoH and other health expert groups reiterated the importance of improving the coverage of the COVID-19 primary vaccination series and the first booster of all adults.

“The second booster for our health workers and senior citizens will enhance protection given by the first booster and the primary series against all variants, including the recent Omicron subvariant BA.2.12.1. Against whatever variant there is out there, the second booster supports the 4-Door strategy. It fortifies the defense of health workers and highly vulnerable seniors. Everyone eligible can get the second booster jab done at the LGU vaccination sites nearest you. They are safe, effective, and free of charge,” said Health Undersecretary Maria Rosario S. Vergeire.

COVID-19 vaccines work as they lower the chance of getting the virus. They can also protect a person from getting seriously ill and lowers the chance of hospitalization and death from COVID-19. They likewise make a vaccinated person less likely to pass the disease to others.

The DoH called on all Filipinos to stay up to date with their COVID-19 vaccines, including all recommended boosters when eligible, as this helps keep healthcare utilization low and the economy reopening under Alert Level 1.

The research and development and manufacture of COVID-19 vaccines are among the contributions of members of the Pharmaceutical and Healthcare Association of the Philippines to fight this pandemic.

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines (PHAP), which represents the biopharmaceutical medicines and vaccines industry in the country. Its members are at the forefront of research and development efforts for COVID-19 and other diseases that affect Filipinos.

Australia’s central bank raises rates for third month, still more to come

July 6, 2022 | 12:01 am

SYDNEY — Australia’s central bank on Tuesday raised interest rates for a third straight month and flagged more ahead as it struggles to contain surging inflation even at the risk of triggering an economic downturn.

Wrapping up its July policy meeting, the Reserve Bank of Australia (RBA) lifted its cash rate by 50 basis points (bps) to 1.35%, marking 125 bps of hikes since May and the fastest series of moves since 1994.

“The Board expects to take further steps in the process of normalizing monetary conditions in Australia over the months ahead,” said RBA Governor Philip Lowe in a statement.

The hike was widely expected in markets and the local dollar eased slightly in reaction to $0.6863 while futures narrowed the odds on another half-point hike in August.

Mr. Lowe was confident the economy could withstand the jolt with unemployment at five-decade lows of 3.9% and job vacancies at all-time highs. Household demand has also held up well, thanks in part to A$260 billion ($178.59 billion) in extra savings accumulated during the pandemic lockdowns.

Still, higher borrowing costs are bound to be a drag on spending power given households owe A$2 trillion in mortgage debt and home values have started slipping after a bumper 2021.

The hikes delivered so far will add around A$400 a month in repayments to the average A$620,000 mortgage, and that is on top of higher costs for energy, petrol, health and food.

“Rates were expected to rise, and they’re expected to bite,” was the response of Treasurer Jim Chalmers, whose Labor Party won power less than two months ago.

Floods across the east coast in recent days will add to the pain by pushing up prices for vegetables and fruit.

Official data on consumer price inflation for the second quarter is due later this month and is expected to show another alarming rise to 6% or more, levels not seen since a national sales tax was introduced back in 2000.

Core inflation is also likely to accelerate past 4.0% and further away from the RBA’s target band of 2-3%. This is a major reason markets are priced for another half-point hike in August and rates reaching at least 3.0% by the end of the year.

Mr. Lowe himself recently conceded that there was a “narrow path” between tightening enough to control inflation or too much and tipping the economy into recession.

“It appears prepared to risk some economic harm to achieve its inflation objective,” warned Nomura economist Andrew Ticehurst. “Our view is that this pain will be realized, and we now see a recession in Australia starting early next year.

“With inflation somewhat sticky, we expect rate cuts to be somewhat delayed, but have penciled in three 25-bp cuts towards the end of next year.” — Reuters

Arts & Culture (07/06/22)

July 6, 2022 | 12:01 am

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Narrative design studio participates in ToyCon

ISTORYA, a narrative design studio founded by artists Rodel Tapaya and Marina Cruz, creates toys and toys and print-based products on the history and culture of the Philippines. “Our vision is to break new ground and transform learning in the Philippines. We aim for a time when our history is easily remembered and is joyfully shared in ways that would bring light to our culture and bring hope to our future” said the husband-and-wife team. IsTorya’s games, which are suitable for kids aged 8 and up, include Patandaan, a card game about historical figures, Sangandaan, a card game about momentous moments in the Philippines. IsTorya will participate ToyCon 2022 at Booth D4, Megatrade Hall, SM Megamall, from July 8 to 10. Its products are also available at IsTorya Studios on Lazada. For more information, visit istoryastudios.ph, contact info@istoryastudios.ph, or follow @istoryastudios on Instagram and Facebook.

Filipino artist with autism releases NFT collection

VICO Cham, an award-winning artist with autism, will release “Shoebox Sketches,” a collection of paintings to be transformed into non-fungible tokens (NFT). Minting is expected to begin shortly after whitelisting on Opensea. Proceeds will benefit Vico’s Vico’s Artism Gallery, a gallery that supports artists with disabilities. For details, follow @vicochamnfts on Twitter, Instagram, and Telegram. To join the Discord community, visit https://discord.gg/sPJTM2pYhu.

Manobo artist holds music and dance workshop on Zoom

LISAG: An Agusan Manobo Music and Dance Workshop will showcase traditional performing arts in a free two-part Zoom webinar lecture headlined by Agusanon Manobo tribe member and visual artist Carlito Camahalan Amalla on July 6 and 8. A founder and officer of the Agusan Artists Association in Butuan City and the Balangay Artists Association in Manila, Mr. Amalla will introduce indigenous art forms and their role in enriching the identity of the Filipinos. Mr. Amalla, who is also a performing arts educator from the Design Foundation Department of the De La Salle-College of Saint Benilde, presented his Agusan Manobo embroidery artworks at the School of Oriental and African Studies of the University of London in 2019. Lisag: An Agusan Manobo Music and Dance Workshop is free and open to the public via Zoom. The discussion on the traditional music and dance will be conducted on July 6; the music and dance workshop will be held on July 8. Interested participants may register through https://tinyurl.com/2p8ds7ca.

Art and mental health meet in ‘Introspections’

Health and human rights volunteer organization The Red Whistle partnered with Filipino contemporary artist Reynold dela Cruz and The Astbury for “Introspections,” an exhibition featuring the works that Mr. dela Cruz created during the pandemic. The Red Whistle, which celebrates its 11^th anniversary this year, is focused on rebuilding and relaunching its key programs and activities on raising awareness on HIV (human immunodeficiency virus), SOGIESC (sexual orientation, gender identity and expression, and sex characteristics), and mental health. For more information, visit www.theredwhistle.com.

Art Lounge Manila presents two exhibitions

THIS July, Art Lounge Manila presents two art exhibits at its Podium and Molito branches. The “Petite Format” printmaking exhibition runs until July 10 at Art Lounge Manila — Podium, Ortigas Center. The Norse Mythology-inspired “Nordic Sky Worlds” exhibition runs until July 12 at Art Lounge Manila — Molito in Muntinlupa City. For more information visit www.artloungemanila.com or follow @artloungemanila on Instagram and Facebook.

‘Dungawan’ at ARTablado

On view at the Upper Ground Floor, North Wing of Robinsons Place Antipolo until July 15 is “Dungawan,” which features the works of Grupo Sining Angono. ARTablado, a portmanteau of “art” and “entablado” is Robinsons Land’s venue for showcasing Filipino creativity. For more information, visit facebook.com/ARTablado.

Maryknoll Ecological Sanctuary holds classical concert

THIS weekend, the Maryknoll Ecological Sanctuary will hold a classical music concert to raise funds for the rejuvenation of its Learning Garden, Vegetable Garden, and Sanctuary Garden. The concert will feature performances by Sr. Nenita Tapia, MM, Glenn Gaerlan, Nina Agustin, Angel Leal, and Francis Ramos. Donations will be accepted through the following BPI (0571-0169-07) and GCash (0995-932–4875). “A Rebirth: A Classical Concert for a Cause” will be held in the Maryknoll Ecological Sanctuary in Baguio on July 9, from 2 p.m. to 4 p.m.

AMRO’s ASEAN+3 GDP growth and inflation rate forecasts

July 6, 2022 | 12:01 am

THE ASEAN+3 Macroeconomic Research Office (AMRO) raised its growth projection for the Philippines this year amid the further reopening of the economy and rising inflation. Read the full story.

DoE fines First Gen unit EDC

July 6, 2022 | 12:01 am

LISTED energy firm First Gen Corp. said on Tuesday that its subsidiary Energy Development Corp. (EDC) had been fined by the Energy department.

First Gen disclosed that its unit was fined P100,000 for late application of the safety officer’s permit for its Mainit-Sadanga Geothermal Power Project.

The late application is a violation of Department Circular No. 2012-11-0009 also known as Renewable Energy Safety, Health and Environment Rules and Regulations.

In the document, it is said that an annual renewal of permit should be made within one month prior to the date of expiration of the previously issued permit.

EDC is the world’s largest vertically-integrated geothermal company that is engaged in the exploration, development, operation, and optimization of geothermal steam fields, and in power generation.

It owns and operates 12 integrated geothermal power stations in Leyte, Bicol, Southern Negros, and North Cotabato, with an installed capacity of 1,179 megawatts (MW).

First Gen and its subsidiaries are involved in the power generation business. It is the largest clean and renewable independent power producer in the Philippines, with a total installed capacity of 3,492 MW as of Dec. 31, 2020.

The company owns power plants that utilize natural gas, geothermal, wind, hydro, and solar power which are operational and majority-owned and controlled by First Gen through its subsidiaries.

At the stock market on Tuesday, shares in First ended higher by 0.94% or P0.16 to close at P17.20 apiece. — Justine Irish DP. Tabile

How PSEi member stocks performed — July 5, 2022

July 6, 2022 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Tuesday, July 5, 2022.

Peso sinks to fresh near 17-year low vs the dollar on faster June inflation

July 5, 2022 | 9:00 pm

THE PESO sank to a new near 17-year low against the dollar as data released on Tuesday showed headline inflation was above 6% in June. — BW FILE PHOTO

THE PESO hit a new near 17-year low against the dollar on Tuesday following the release of data showing June headline inflation was at 6.1%, an over three-year high.

The local unit closed at P55.23 per dollar on Tuesday, down by 15 centavos from its P55.08 finish on Monday, Bankers Association of the Philippines data showed.

This is the peso’s weakest close in nearly 17 years or since Oct. 25, 2005, when it ended at P55.26 versus the greenback.

The local unit opened Tuesday’s session at P55 against the dollar. Its weakest showing was at P55.25, while its intraday best was at P54.98 versus the greenback.

Dollars exchanged rose to $1.29 billion on Tuesday from $976.26 million on Monday.

For the year so far, the peso has weakened by P4.23 or 8.29% from its Dec. 31, 2021 close of P51 per dollar.

“The peso recorded new lows today due to local caution from the stronger-than-expected Philippine inflation for June 2022 at 6.1%,” a trader said.

“The peso exchange rate weaker for the second day in three trading days… after the latest headline inflation data at a new 3.5-year high of 6.1% and after the higher US dollar versus major global currencies,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

“The latest movement in the local currency market was also partly brought about some slight upward correction/pickup in US Treasury yields and in global crude oil prices,” Mr. Ricafort added.

Headline inflation in June surged to 6.1% year on year from 5.4% in May and 4.1% a year ago amid higher food and transport costs, preliminary data from the Philippine Statistics Authority released on Tuesday showed.

The June headline print is a near four-year peak, matching the pace recorded in November 2018 and was the fastest since the 6.9% logged in October 2018.

Year to date, inflation has averaged 4.4%, higher than the 4% seen in the same period a year ago but lower than the central bank’s 5% forecast for the year.

Meanwhile, US Treasury yields returned from the holiday higher, with the yield on benchmark 10-year notes at 2.952% but failing to push back above the symbolic 3% level, Reuters reported.

Brent crude futures gave up early gains to trade down 0.2% at $113.28 a barrel.

For Wednesday, the trader said the peso may weaken further against the dollar ahead of the release of the minutes of the US Federal Reserve’s June meeting, which they expect to have a hawkish tone.

The Fed hiked rates by 75 basis points at its June review, the biggest increase since 1994, as it seeks to control runaway inflation.

The trader expects the peso to move between P55.15 and P55.35 against the dollar on Wednesday, while Mr. Ricafort gave a forecast range of P55.20 to P55.30. — K.B. Ta-asan with Reuters