Treasury bill, bond rates seen to move sideways

March 13, 2023 | 12:02 am

RATES of Treasury bills (T-bills) and Treasury bonds (T-bonds) may move sideways due to US economic data that could affect the US Federal Reserve’s next policy move.

The Bureau of the Treasury (BTr) will auction off P15 billion in T-bills on Monday, made up of P5 billion each in 91-, 182-, and 364-day papers.

On Tuesday, it will offer P25 billion in reissued 25-year T-bonds that have a remaining life of 12 years and six months.

A trader said the T-bills will trade sideways this week, with the BTr expected to reject some bids again.

Meanwhile, the T-bonds may fetch rates of 6.35% to 6.5%, with the maturity of five-year bonds last week and US data to affect the range.

The trader said US economic data could impact the Fed’s next move, which could likewise affect the Bangko Sentral ng Pilipinas’ (BSP) policy decision this month.

“US labor data and February US CPI (consumer price index) would have a larger say in defrosting local risk appetite, assuming their updates do not pose upside surprises,” Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion likewise said in a report.

The US Labor department on Friday said nonfarm payrolls increased by 311,000 jobs in February, Reuters reported.

US unemployment growth also hit 3.6%, slower than January’s 3.4% which was the lowest since May 1969.

However, average hourly earnings only increased by 0.2% last month, compared with 0.3% in January. This lowered the year-on-year increase in wages to 4.6% from 4.4% in January.

Meanwhile, February US CPI data will be released on March 14, Tuesday.

US consumer inflation increased 0.5% in January after gaining 0.1% in December. In the 12 months through January, the CPI increased 6.4%.

The inflation report will be the last major data to be released before the Fed’s next policy meeting on March 21-22.

The US central bank hiked its target interest rate by 25 basis points (bps) at its Jan. 31 to Feb. 1 meeting to a range between 4.5% and 4.75%.

Since March 2022, the Fed has raised rates by a total of 450 bps.

Meanwhile, the BSP will hold its own policy review on March 23.

The Philippine central bank last month hiked benchmark interest rates by 50 bps, bringing the key rate to 6%. The move brought cumulative increases since May 2022 to 400 bps.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that T-bill rates could track secondary market movements.

At the secondary market on Friday, the 91-, 182-, and 364-day T-bills went up by 9.42 basis points (bps), 15.31 bps, and 10.74 bps week on week to end at 4.7112, 5.3295%, and 5.7163%, respectively, based on the PHP Bloomberg Valuation Service Reference Rates data published on the Philippine Dealing System’s website.

“The upcoming 13-year Treasury bond auction yield could be close to the comparable 12-year PHP BVAL yield currently at 6.41% as of March 10, 2023,” Mr. Ricafort said.

“Lower long-term PHP BVAL yields could also be due to the P76.8-billion five-year Treasury bonds that matured on March 8,” he added.

Last week, the BTr raised just P9.705 billion from its offering of T-bills, lower than the P15-billion program, as rates climbed across the board.

Broken down, the Treasury made a partial P2.455-billion award of the 91-day T-bills versus the P5-billion program, despite tenders reaching P5.712 billion. The average rate of the three-month paper rose by 17.3 bps to 4.586%. Accepted rates ranged from 4.53% to 4.65%.

The government likewise borrowed just P2.25 billion via the 182-day securities, lower than the P5-billion plan, even as demand for the tenor reached P6.8 billion. The six-month T-bill was quoted at an average rate of 5.378%, rising by 20.1 bps, with the BTr only accepting offers with yields of 5.378%.

Meanwhile, the BTr made a full P5-billion award of the 364-day debt papers as bids for the tenor reached P8.157 billion. The average rate of the one-year paper climbed by 13 bps to 5.707%. Accepted yields were from 5.65% to 5.743%.

On the other hand, the reissued 25-year T-bonds to be auctioned off on Tuesday were last offered on Jan. 10, where the government raised the programmed P35 billion. The bonds fetched an average rate of 7.182%, with accepted rates at 7.125% to 7.23%.

The Treasury wants to raise P200 billion from the domestic market this month, or P75 billion via T-bills and P125 billion via T-bonds.

The government borrows from local and foreign sources to finance its budget deficit, which is capped at 6.1% of gross domestic product this year. — A.M.C. Sy

Style (03/13/23)

March 13, 2023 | 12:01 am

UNIQLO-JWA-2023 — UNIQLO’s A Sporting Way of Life collection collaboration with JW Anderson

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Uniqlo and JW Anderson collaborate

GLOBAL apparel retailer Uniqlo will launch on March 24 the A Sporting Way of Life collection, a collaboration with JW Anderson. The Spring/Summer 2023 range reinterprets quintessential British style through JW Anderson’s elegant and playful lens, taking inspiration from the traditional sports of British universities. “This season reworks our idea of classic sportswear, such as a traditional cricket cardigan alongside sports leggings or hand-drawn traditional British sporting team motifs on utility shorts and more traditional knitted polo shirts,” Creative Director Jonathan Anderson is quoted as saying in a statement. The collection includes a women’s Cricket Cardigan with athletic uniform-inspired lines, in a light cotton-linen blend, as well as women’s and men’s AirSense Blazers, which feature for the first time in the collaboration line. The collection reimagines these iconic British preppy items in the innovative lightweight, stretchy, quick-dry fabric, finished with the original JW Anderson logo button. Several items also double as sportswear including a tennis-inspired Pleated Mini Skirt, leggings in the soft, quick-drying fabric of AIRism, and Cropped Bra Sleeveless Top, and a UV Protection Parka in lightweight nylon, with JW Anderson’s offbeat color blocking. The lineup — 15 items for women and 10 for men and two accessory items — will be available at Uniqlo stores nationwide and on UNIQLO.com/ph, although some items will only be available in select stores.

Beauty procedures available in FamilyMart ‘speakeasy’

THERE’S more than just the regular convenience store fare in one FamilyMart outlet as it also offers facials, glutathione drips, and diamond peel treatments, among others. The beautifying procedures will be available at the aesthetics center tucked in the back of the store like a speakeasy. “We want to offer a different level of convenience and a unique experience to our customers because we want them to make the most out of every visit. Aside from achieving their beauty goals through our treatments, they can also take advantage of the extensive offers of FamilyMart,” said KAS Aesthetics, Inc. president Sarah Lim-Sanchez in a statement. Located on the ground floor of Udenna Tower on the corner of Rizal Drive and 4^th Ave. in BGC, Taguig, the KAS Aesthetic Lounge recently opened with a full menu of face and body treatments, including a range of slimming procedures, laser hair removal, facials, and whitening drips. With its unique location, KAS customers who want more privacy can enter the convenience store, and discreetly make their way to the back where the clinic is located. Since FamilyMart also offers a full menu of Japanese favorites such as onigiri, ramen, and donburi, clients may opt to have a meal before or after their clinic appointments. A full range of hot and iced coffee drinks under the FamilyMart Coffee Creations line can also be enjoyed in the store’s dining area. While FamilyMart Udenna is open 24/7, KAS Aesthetic Lounge is open from 11 a.m. to 8 p.m., Tuesdays to Sundays. As a special opening promo, a limited number of customers can enjoy a 50% discount on select procedures, or avail of 5+1 deals on packages. Appointments can be made via 0916-603-8355. For more information, contact the KAS Aesthetic Lounge via their Facebook page facebook.com/kasaestheticlounge/.

POP QC bazaar at Gateway Mall

IN CELEBRATION of Women’s Month, the J. Amado Araneta Foundation (JAAF), the social development arm of the Araneta Group, has partnered with the local government of Quezon City to promote women entrepreneurs through a bazaar. The Proudly Original Products of Quezon City (POP QC) bazaar will be held from March 17 to 19, 10 a.m. to 9 p.m., at the ground floor of the Gateway Mall in Araneta City, QC. The three-day event will feature nine groups of women entrepreneurs with interesting products like clothes, bags, and some personally crafted items. Officials from Araneta City and Quezon City government, along with the Binibining Pilipinas 2023 candidates and Quezon City Symphonic Band, will take part in the opening of the bazaar on March 17 at 10:30 a.m. The bazaar is made possible by the Quezon City Small Business and Cooperative Development Promotions Office, J. Amado Araneta Foundation, Gateway Mall and Araneta City.

Gap promo on spring blooms collection

GAP is offering modern and optimistic designs for Men, Women, kids and babies alike with its floral prints for spring. To celebrate the season, the following offers are being made for the entire family this March. VIPs can enjoy 50% off on kids and baby items and 30% off on adult items for a week from March 13-19. The general public can avail Buy 1 Get 1 on Kids and Baby Styles and 20% off on adult regular items from March 17-19. Meanwhile, in celebration of Disney’s 100^th year this 2023, a limited collection will be available to celebrate this milestone. Gap has stores at Glorietta 4, Shangri-la Mall, SM Mall of Asia, SM Megamall, Trinoma, Abreeza, Davao and Alabang Town Center (adult styles only). Customers can also shop online at gap.com.ph.

Bazaars and more for summer at Shangri-La Plaza

SHANGRI-LA Plaza mall creates an Ode to Summer as it presents shopping, dining, and creative activities to fill the entire month of March and provide a taste of what’s ahead for the sunniest season of the year. Rustan’s will showcase its must-have fashion fits and accessories for women and kids on March 13-19 with the Summer Town Fair at the Grand Atrium. Toys R US will have the Kids of Summer bazaar on March 28-April 2 at the Grand Atrium. This month the mall will also see the openings of stores from global fashion brand United Colors of Benetton, local jeweler Manila Diamond Studio, and toy brand LEGO. To marks National Women’s Month, The Artologist Gallery presents the first solo exhibition of sculptor Karen Castrillo-Villaseñor, Glamorosa, at the East Atrium until March 19. The collection is composed of copper artworks depicting the beauty and strength of women. Ikebana Manila will have an exhibit of the traditional Japanese flower arrangements at the Grand Atrium on March 21-26. Author Francis Kong is launching an open dated planner with National Bookstore on March 29, 6 p.m., at the East Atrium. More restaurants are joining Shang’s extensive list of eateries including The Manila Baker, known for its Basque burnt cheesecake; Illo’s Buffet, known for its party trays; and Teppanya, popular for its fiery Japanese modern cuisineg. More Bistro Group brands are also opening including seafood spot Fish & Co, Korean BBQ resto Bulgogi Brothers, and American food go-to TGI Fridays. Shang’s Food Forum will also be hosting a series of food bazaars all weekends of March. For updates and inquiries, follow Shangri-La Plaza on Facebook at www.facebook.com/shangrilaplazaofficial and on Instagram @shangrilaplazaofficial.

Levi’s names NewJeans its global ambassadors

IN CELEBRATION of the 150^th anniversary of Levi’s 501 jeans, the brand has named South Korean K-pop girl group NewJeans, as its new global ambassadors. The year-long partnership — spanning Spring/Summer ’23 and Autumn/Winter ’23 — will include a new campaign featuring the brand as well as concerts and appearances. The all-girl group NewJeans broke out with the buzzy music video for their debut single “Attention,” followed up by bold singles “Hype Boy” and “Cookie” from their self-titled debut EP. Their following singles, “Ditto” and “OMG” entered the Billboard Hot 100 while further expanding their sound. In addition to their music, NewJeans has earned fans worldwide for their innovative aesthetics. Known for their Y2K-inspired fashion mixed with modern trends, NewJeans’ name refers to their aspirations to become timeless icons of a new era, like jeans, that people never become tired of putting on. No jeans have been more timeless than Levi’s 501 Originals. To kick off the partnership, Levi’s will be releasing a brand campaign featuring NewJeans that celebrates the group’s positive energy and each member’s unique personality all while wearing items from the upcoming Levi’s® Spring/Summer 2023 collection. The group can be seen sporting the 501 ’81 and 501 Original as well as Levi’s T-shirts, denim shirts, and truckers. Additionally, NewJeans will celebrate 501 Day on May 20 – the date in 1873 when Levi Strauss & Co. was granted a patent on the process of riveting pants – in Seoul with a live performance.

New PIAA LPX Sport Lamp series now here

March 13, 2023 | 12:01 am

VELO_Page2_GLOVEBOX_image6 — Off-roaders are fitted with new PIAA LPX Sport Lamp products. — PHOTO FROM PIAA PHILIPPINES

PIAA PHILIPPINES reports that the new PIAA LPX Sport Lamp series is now available in the country. LPX Sport Lamps come with “an intricately more rugged aesthetic and brighter illumination to satisfy the outdoor lifestyle image of off-roading and overlanding aficionados… and is perfect for any outdoor adventure,” said the company in a release.

The lamps are positioned as tough — offering superior lighting capabilities. The LPX 590 nine-inch round lamps are given a powerful set of 32 LED bulbs, while the LPX 570 seven-inch lamps feature 16 LED bulbs. Both sizes produce a color output of 5,500 Kelvin and each has a built-in DRL rim — giving the driver flexibility, depending on how much road lighting is required.

The LPX 570 seven-inch lamp is also available in a 2,500-Kelvin yellow driving beam. For added protection, the LPX lamps are fitted with a removable stone guard grille. As part of its safety requirements, the PIAA LPX Lamp series comes with a certification that it meets global ECE regulation standards. For more information, check out the PIAA Philippines Facebook (PIAA.PH) and Instagram (@piaa.ph_official) accounts.

Trade show to position PHL as major source of prime food ingredients

March 13, 2023 | 12:01 am

THE Department of Trade and Industry (DTI) said it has organized the 16^th edition of the IFEX Philippine international food trade show on May 26-28.

The trade show, to be run by the DTI’s export promotions arm, the Center for International Trade Expositions and Missions (CITEM), will take place at the World Trade Center in Pasay City.

IFEX Philippines is expected to feature over 500 exhibitors promoting beverages, specialty foods, fruit and vegetables, biscuits and confectioneries, snacks and crispy savory food products, meat and poultry, dairy products, cereals, grains and starch, seafood, organic and natural products, food ingredients, and equipment and services.

“We want to position the Philippines as a sourcing destination that is not only capable of meeting global demand but also offers some of the most distinct and innovative products on the market,” CITEM Executive Director Edward L. Fereira said in a statement.

“IFEX Philippines aims to further cement the country’s reputation as a reliable source of premium-quality food and ingredients,” he added.

The CITEM said that the 2023 edition of IFEX Philippines will have expanded representation of regional food-related small and medium enterprises, with regional and provincial offices of the DTI and local government units subsidizing their participation.

Aside from the physical trade show, the DTI said digital storefronts and product catalogs on the digital sourcing platform IFEXConnect will also be on offer.

Last year, IFEX Philippines generated $107.1 million worth of export and attracted almost 6,000 buyers and visitors. — Revin Mikhael D. Ochave

Philstar Media Group bags two silvers at 58^th Anvil Awards

March 13, 2023 | 12:01 am

THE Philippine STAR’s 36^th-anniversary campaign, “The Next Page,” and BusinessWorld’s virtual economic forum, “Revolutions 2022: Navigating the Changed World,” bagged silver awards under the Public Relations Tool category at the Public Relations Society of the Philippines’ (PRSP) Gabi ng Parangal held on March 8 at Marriott Hotel Manila.

The STAR was recognized for engaging the audience as thought leaders and for achieving a significant boost in readership and online page views.

BusinessWorld was hailed for executing a virtual forum aimed at helping the Philippine business community recover from the pandemic. Business and thought leaders shared ways on how to face and thrive in the new world.

Considered the Oscars of public relations in the country, the 58th Anvil Awards are presented by the PRSP to outstanding PR programs, tools, and practitioners as discerned by a multisectoral board of jurors.

Yields mixed on inflation data, Powell comments

March 13, 2023 | 12:01 am

YIELDS on government securities (GS) traded at the secondary market ended mixed last week following slower February inflation, the movement of US Treasuries and hawkish statements from the US Federal Reserve chief.

Debt yields, which move opposite to prices, went up by an average of 3.32 basis points (bps) week on week, based on the PHP Bloomberg Valuation (BVAL) Service Reference Rates as of March 10 published on the Philippine Dealing System’s website.

At the short end of the curve, yields on the 91-, 182-, and 364-day Treasury bills (T-bills) went up by 9.42 bps (to 4.7112%), 15.31 bps (5.3295%), and 10.74 bps (5.7163%), respectively.

At the belly, rates of the two-, three-, four-, five-, and seven-year Treasury bonds (T-bonds) rose by 22.17 bps (to 5.889%), 17.40 bps (5.9765%), 10.36 bps (6.049%), and 2.45 bps (6.1092%), respectively.

On the other hand, the yield on the seven-year bond fell by 6.96 bps to (6.2119%).

At long end, rates of the 10-, 20- and 25-year T-bonds went down by 11.21 bps (to 6.3375%), 15.49 bps (6.589%), and 17.66 bps (6.5814%), respectively.

Total GS volume traded reached P14.60 billion on Friday, lower than the P7.77 billion on March 3.

The bond trader said last week was “eventful” for the local market.

“First, Philippine inflation data revealed a slowdown from the previous month and was lower than what was initially anticipated by the market. Following this, US Federal Reserve Chair Jerome Powell’s hawkish remarks led market players to adjust their peak rate expectations for the year,” the bond trader said in a Viber message.

These developments put pressure on yields at the front end of the curve, while tenors at the belly and the long end remained steady or fell slightly, the trader added.

Philippine headline inflation eased to 8.6% in February from the 14-year high 8.7% in January, preliminary data from the Philippine Statistics Authority showed. Still, this was faster than the 3% in February 2022.

February inflation was below the 8.9% median in a BusinessWorld poll, but within the Bangko Sentral ng Pilipinas’ (BSP) 8.5-9.3% projection for the month.

For the first two months of the year, inflation averaged 8.6%, well above the BSP’s 2-4% target and 6.1% forecast for 2023.

Meanwhile, Mr. Powell said to lawmakers last week that the US central bank is likely to raise rates more than previously expected and warned that the process of getting inflation back to 2% has “a long way to go.”

The Fed hiked its target interest rate by 25 bps at its Jan. 31 to Feb. 1 meeting to a range between 4.5% and 4.75%.

Since March 2022, the US central bank has raised rates by a total of 450 bps. Its next policy meeting is on March 21-22.

US yields also dropped due to risk-off sentiment following news regarding Silicon Valley Bank, the bond trader added.

Startup-focused lender SVB Financial Group became the largest US bank to fail since the 2008 financial crisis on Friday, in a sudden collapse that roiled global markets, left billions of dollars belonging to companies and investors stranded, Reuters reported.

California banking regulators closed the bank, which did business as Silicon Valley Bank (SVB), on Friday and appointed the Federal Deposit Insurance Corp. as receiver for later disposition of its assets.

Based in Santa Clara, the lender was ranked as the 16^th biggest in the US at the end of last year, with about $209 billion in assets. Specifics of the tech-focused bank’s abrupt collapse were a jumble, but the Fed’s aggressive interest rate hikes in the last year, which had crimped financial conditions in the start-up space in which it was a notable player, seemed front and center.

Treasury yields extended their slide on Friday over fears of contagion in the financial sector and strong February employment data showing the economy added more jobs than expected.

Benchmark 10-year US notes last rose to yield 3.6892% from 3.923% late on Thursday. The 30-year bond last rose to 3.6899% from 3.87% late on Thursday.

“GS yields traded 2.5-5 bps lower today as it tracked overnight movements in US Treasuries while many still stayed on the sidelines waiting for nonfarm payroll data and US CPI (consumer price index) data,” Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail on Friday.

The US economy added a more-than-expected 311,000 jobs last month, while the unemployment rate unexpectedly ticked higher, along with the labor market participation rate.

Meanwhile, February US CPI data will be released on March 14.

In January, consumer inflation increased 0.5% after gaining 0.1% in December.

On an annual basis, the CPI increased 6.4%. That was the smallest gain since October 2021 and followed a 6.5% rise in December.

“Looking ahead, the direction of the market will be largely influenced by two critical data points from the US the nonfarm payrolls and US inflation data. These data points may have a significant impact on the US Fed’s interest rate decision later this month,” the bond trader said.

“The market saw some buying interest and saw the 10-year and 13-year benchmark bonds taken at 6.26% and 6.40%. Lastly, there will be a 13-year auction this week with early indications of 6.35%-6.475%,” Mr. Asuncion said. — Lourdes O. Pilar with Reuters

Philippines still lags in Safety Perceptions Index

March 13, 2023 | 12:00 am

The Philippines improved 16 places to 112th out of 121 countries in the second edition of the Safety Perceptions Index (SPI) by the Institute for Economics and Peace. However, its overall score slightly deteriorated to 0.397 (score closer to 1 means high risk impact) and even surpassed the global average of 0.2376. The Philippines tied with Afghanistan and remained the laggard in the region.

How PSEi member stocks performed — March 10, 2023

March 13, 2023 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Friday, March 10, 2023.

Peso may drop on hawkish Fed bets

March 12, 2023 | 9:00 pm

THE PESO is expected to weaken against the dollar this week following hawkish comments from the US central bank chief and stronger US employment data.

The local currency closed at P55.17 versus the greenback on Friday, rising by seven centavos from Thursday’s P55.24 finish, Bankers Association of the Philippines data showed.

Week on week, however, the peso fell by 35 centavos from its P54.82 finish on March 3.

The peso weakened on Friday due to a decline in global crude oil prices, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For this week, the peso is expected to decline against the dollar following hawkish comments from US Federal Reserve Chair Jerome H. Powell.

“Despite [the] cooling of Philippine inflation, our traders expect the peso will continue to underperform against the dollar in the coming weeks on Fed Chair Powell’s bombshell of potentially higher policy rate adjustments than what markets have priced in, plus the risk of more US data surprises this quarter,” Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a report.

Mr. Asuncion added that the Bangko Sentral ng Pilipinas (BSP) could match the Federal Open Market Committee’s (FOMC) move this month.

“Our traders also sense a narrower interest rate differential between the BSP and the FOMC after this month, with the BSP expected to hike by 25 bps (basis points) in response to softer February inflation data and higher January jobless rate. Unless senior BSP officials signal otherwise, the strong dollar narrative could be revived this month,” he said.

Mr. Powell told lawmakers last week that the US central bank will likely need to raise interest rates more than expected in response to recent strong data.

The Fed hiked its target interest rate by 25 bps at its Jan. 31 to Feb. 1 meeting to a range between 4.5% and 4.75%. Since March 2022, the US central bank has raised rates by a total of 450 bps.

Its next meeting is on March 21-22.

US labor data released last week also fanned expectations of an aggressive Fed move. The US economy added a more-than-expected 311,000 jobs last month, while the unemployment rate unexpectedly ticked higher, along with the labor market participation rate.

Meanwhile, the BSP will hold its next review on March 23.

The Philippine central bank hiked benchmark interest rates by 50 bps at its Feb. 16 meeting, bringing the key rate to 6%. The move brought cumulative increases in borrowing costs since May 2022 to 400 bps.

For this week, Mr. Ricafort expects the peso to trade between P54.90 and P55.40 per dollar, while Mr. Asuncion gave a wider forecast range of P54.90 to P55.60 range. The trader sees the peso moving from P54.50 to P55.50. — A.M.C. Sy

Stocks to move sideways ahead of US CPI report

March 12, 2023 | 9:00 pm

PHILIPPINE STOCKS are expected to move sideways this week as investors await the release of US consumer inflation data for February.

The Philippine Stock Exchange index (PSEi) went down by 19.39 points or 0.29% to close at 6,589.88 on Friday, while the broader all shares index declined by 8.80 points or 0.24% to 3,540.39.

Week on week, the PSEi dropped 65.49 points or 0.98% from its close of 6,655.37 on March 3.

“The market was down on growth slowdown fears given declines in quarter-on-quarter earnings for some PSEi companies, slower bank lending, local factory output decelerating and worries over faster US Federal Reserve hikes,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in an e-mail.

Credit growth slowed to 10.4% in January from 13.7% in December, Bangko Sentral ng Pilipinas data showed.

Meanwhile, preliminary results of the Philippine Statistics Authority’s latest Monthly Integrated Survey of Selected Industries showed factory output, as measured by the volume of production index, expanded by 10.6% year on year in January.

This was faster than the revised 4.2% growth seen in December, but lower compared with the 10.9% in January 2022.

On the other hand, Fed Chair Jerome H. Powell told lawmakers last week that the US central bank will likely need to raise interest rates more than expected in response to recent strong data.

For this week, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said the main index could retest the 6,600 level, with investors likely to take their cue from February US inflation data.

“A strong inflation print, especially one that beats January’s 6.4%, may put downward pressure on both the Philippine peso and the local market as this would point to more rate hikes by the Fed,” Mr. Tantiangco said in a Viber message.

February US consumer price index (CPI) data will be released on March 14. In January, consumer inflation increased 0.5% after gaining 0.1% in December. In the 12 months through January, US January CPI increased to 6.4%.

“After a series of hawkish comments from no less than the Fed’s Powell [last] week, attention will turn to US CPI print for February [this] week — this is likely the final puzzle piece needed to gauge the next rate change,” online brokerage 2TradeAsia.com said in a note.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said investors will remain cautious ahead of key data releases this week, including reports on trade and cash remittances.

“A wider balance of trade deficit and weak remittance data may also weigh on our local currency’s trading which in turn is seen to have negative spillovers on the market,” Mr. Tantiangco said.

2TradeAsia.com placed the PSEi’s immediate support at 6,400 and resistance at 6,700, while RCBC’s Mr. Ricafort put immediate support at 6,250 and resistance at 7,000-7,100. — Ashley Erika O. Jose

Metro Pacific begins initial work on Candaba Viaduct expansion

March 12, 2023 | 7:22 pm

By Justine Irish D. Tabile, Reporter

METRO PACIFIC Investments Corp.’s tollway unit said it has started preliminary work on the 5-kilometer Candaba Third Viaduct project worth P6.1 billion.

“We are already in the design stage,” Metro Pacific Tollways Corp. (MPTC) President and Chief Executive Officer Rodrigo E. Franco told BusinessWorld.

The project is being implemented by MPTC’s unit, NLEX Corp., with Hong Kong-based Leighton Asia the main contractor. The additional viaduct is covered by North Luzon Expressway Concession Agreement.

The viaduct allows vehicles to traverse the Candaba Swamp, a major bottleneck to north-south travel in Central Luzon, between Pulilan, Bulacan and Apalit, Pampanga.

The third viaduct, to be built between the northbound and southbound portions, is set to be completed by the end of 2024, according to Mr. Franco.

Separately, MPTC is also targeting the completion of the entire length of the NLEX Connector Road between the Caloocan Interchange on C3 Road Dimasalang and Polytechnic University of the Philippines in Sta. Mesa, Manila by May.

The first segment of the NLEX Connector Road is set to open to the public March 27 with toll rates yet to be finalized by the Toll Regulatory Board (TRB).

“There is a tollway application about to be submitted to the TRB. We anticipate that in the next two weeks, the TRB will set the toll fees at least for the first section to be opened,” Mr. Franco said.

MPTC is the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., 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 stake in BusinessWorld through the Philippine Star Group, which it controls.

Interconnection last issue holding back two Cavite to Batangas toll roads — DPWH

March 12, 2023 | 7:21 pm

CBEX---highway-pixabay — The Cavite-Batangas Expressway — PIXABAY

THE Department of Public Works and Highways (DPWH) said the Cavite-Batangas Expressway (CBEX) and Cavite-Tagaytay-Batangas Expressway (CTBEX) projects will go ahead pending the resolution of interconnection issues.

“Both of the projects will continue as the two of them passed concession agreements. But we will have to iron out the pending issues so both of them can start,” DPWH Secretary Manuel M. Bonoan told reporters.

“I don’t think there will be a conflict in alignment because they have separate concessions,” he added.

On Feb. 7, San Miguel Holdings, Inc. and the Cavite province signed a joint venture and a 35-year tollway concession agreement which involves the construction, financing, operations, and maintenance of CBEX.

CBEX is a 27.06-kilometer toll road traversing Silang, Amadeo, Tagaytay, Indang, Mendez and Alfonso, Cavite, ending in Nasugbu, Batangas.

In a disclosure to the Philippine Stock Exchange, San Miguel Corp. said that the project aims to improve the connectivity between the National Capital Region and the Cavite, Laguna, Batangas, Rizal and Quezon region, enhance the mobility of people and goods, and mitigate road congestion in the area.

CTBEX is a project of Metro Pacific Tollways Corp. unit MPCALA Holdings, Inc., running through Silang, Tagaytay, Amadeo, Alfonso, and Magallanes, Cavite and Nasugbu. — Justine Irish D. Tabile