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A trip to Jakarta: The Big Apple in Southeast Asia

JAKARTA City Center

By John Victor D. Ordoñez, Reporter

JAKARTA, Indonesia — People consider Bali as the premier travel destination in Indonesia, but the bustling city of Jakarta should not be overlooked.

“The Big Apple, the city that never sleeps is not just in New York, but exists right here in Jakarta,” Hari Wibowo, who heads the Marketing and Attraction Division of the Tourism and Creative Economy Office of the Jakarta provincial government, told BusinessWorld earlier this month in Jakarta during a dinner with media representatives from the Philippines.

“Name a type of business and the city is sure to have it.”

Jakarta is a city that boasts of modern innovations while remembering its history as a former Dutch colony.

One could get lost in the endless towering skyscrapers, state-of-the-art malls, and historical monuments that take you back to the 17th century.

CULTURAL ACTIVITIES
My first day exploring the city started on an early Sunday morning when I witnessed Jakarta’s “car-free day.”

Every Sunday, city roads are closed to encourage people to exercise and ride bikes to reduce pollution.

The first stop of our cultural tour of Jakarta was the Kota Tua, which translates to Old Town in Indonesian. The area is a historic district that is filled with colonial-era buildings and cobblestone streets that reflect 17th-century Dutch architecture.

The town also had world-class art galleries featuring both modern and classical pieces in their collections.

For lunch, we headed to the residence of Ethys Mayoshi, owner of Batik Gobang, a traditional Indonesian garment shop in West Jakarta. There, we were introduced to a spread of Indonesian cuisine staples such as nasi goreng, pempek, and satay skewers.

Ms. Mayoshi then walked us through how to craft our own batik designs by drawing outlines of different flowers on white cloth and then tracing them in with melted wax.

The next stop on our tour was Indonesia’s National Monument, also known as Monas, which stands at a towering 433 feet.

The monument, which finished construction in 1975, commemorates Indonesia’s 1949 independence from Dutch occupation.

We were brought to the top of the obelisk in Central Jakarta through its built-in elevator, which gave us an unobstructed view of the city’s skyline.

MODERN CITY SPOTS
It is not hard to get to where you need to be in the city thanks to its integrated public transportation system.

We hopped on Jakarta’s new train and bus transit systems, which are both accessed through the all-in-one Jaklingko card. The card can also be used for various transactions at selected establishments around Indonesia.

After getting off at our last bust stop for the day, we explored the PT Sarinah department store, a state-owned establishment that showcases local businesses.

The store, which opened in 1966, was named after President Sukarno’s childhood nanny. It was made in response to soaring inflation at the time.

The PT Sarinah was the first skyscraper built in Jakarta and has undergone several renovations.

There visitors can shop for traditional Indonesian garments and enjoy dining at restaurants that offer both local cuisine and food from around the world.

We particularly enjoyed a scoop of handcrafted, artisan ice cream from Honest Spoon.

The next stop in our Jakarta shopping expedition was the Thamrin City Mall, which is located beside Grand Indonesia and Plaza Indonesia — two of Jakarta’s biggest shopping centers.

There we experienced bargaining for deals with the little Bahasa Indonesian we had learned. Some of our finds at the market included traditional batik polos and tops, as well as modern iterations of the fabric used in batik kimonos.

THOUSAND ISLANDS
Travelers can also enjoy an island paradise experience which is just a boat ride away from mainland Jakarta.

Kepulauan Seribu — which translates to the Thousand Islands — is a chain of about 342 islands and beaches stretching 45 kilometers into the Java Sea. The islands boast white sand beaches that can rival some of the best in Southeast Asia.

Tidung Island’s Love Bridge is a popular spot for hopeless romantics. Locals believe that a person that jumps into the water from the bridge seven times in a row would soon find their soulmate.

PRIME URBAN DESTINATION
We wrapped up the short tour of Jakarta with dinner at the Tugu Kunstkrin Paleis, which translates to “art circle palace,” a high-end Indonesian restaurant that also has a rich history dating to Indonesia’s colonial past.

The establishment previously served as an immigration office for central Jakarta until the late 1990s. It was then converted into a world-class art gallery that exhibited iconic works by artists such as Vincent Van Gogh and Pablo Picasso.

The restaurant’s interior reflects old Batavia, — Indonesia’s name under Dutch occupation — with antique paintings and accouterments decorating the place.

The restaurant’s menu includes Indonesian classics such as Tempeh, deep-fried soybean cakes, and Satay Lembt Betawi, skewers of spicy minced beef mixed with coconut.

At the dinner, Mr. Wibowo said Jakarta’s tourism office aims to promote the city as a prime urban destination for both business and leisure travelers.

“We see our city as the place to be doing business and leisure as we have many new establishments that tourists can look forward to,” he said at the venue.

Even though tourism numbers are still far from pre-pandemic levels, the easing of travel and health restrictions makes him hopeful that more tourists will be coming to Jakarta, he said.

Jakarta is known for attracting art and music enthusiasts as it routinely holds the Jakarta International Java Jazz Festival, one of the largest jazz festivals in the world.

The city also boasts the largest stadium complex with a retractable roof in Asia — the Jakarta International Stadium which has a seating capacity of 82,000 people.

VISITOR ARRIVALS
Last year, Jakarta reported 14,890 visitor arrivals from the Philippines, significantly more than the 2,540 in 2021, according to data from the Jakarta provincial government.

This is still a far cry from the 57,593 Filipinos who visited Jakarta in 2018 and 2019, before the coronavirus pandemic.

“Hopefully, with more collaborative projects between our two countries this year, we hope to have more Filipino tourists in Jakarta,” Mr. Wibowo said.

Indonesia attracted 5.47 million foreign visitors last year, more than three times the number a year earlier. However, this is still well below the 16.1 million visitors it welcomed in 2019.

The Southeast Asian nation is targeting attracting between 3.5 and 7.4 million foreign tourists this year.

BusinessWorld took part in the Indonesian Embassy’s Jakarta Familiarization trip on Feb. 4-8.

CTA affirms Titanium’s canceled tax liabilities 

CTA.JUDICIARY.GOV.PH

THE Court of Tax Appeals (CTA) has affirmed its ruling that canceled Titanium Corp.’s tax liabilities worth P9.22 million inclusive of interests for the taxable year 2011.

In a 26-page decision dated Feb. 13 and made public on Feb. 16, the CTA full court agreed with its third division that said the commissioner of internal revenue (CIR) did not afford the firm due process when it did not address its arguments in the final assessment notice.

“A party’s fundamental right to due process includes the right to be informed of the various issues involved in a proceeding and the reasons for the decision rendered by the quasi-judicial agency,” Associate Justice Lanee S. Cui-David said in the ruling.

The tax court said Titanium was left unaware of how its arguments disputing the tax assessment were considered.

In a 2020 resolution, the CTA Third Division voided the tax assessment representing the firm’s alleged deficiency income tax, value-added tax, extended withholding tax, withholding tax on compensation, and documentary stamp tax for 2011.

Citing Supreme Court jurisprudence, the tax court said the final decision on the disputed assessment must be canceled since revenue officers were not authorized through a new letter of authority to recommend the issuance of the decision. 

The CIR argued that it duly notified the firm of the factual and legal basis of its issuance of the subject tax assessment. The official said the firm was able to file its protest but did not present any relevant documents to support its defenses against the deficiency tax findings.

The CTA disagreed, saying the final assessment only reiterated the same findings it said in its preliminary notice, without explaining why it rejected the firm’s arguments.

“It is true that the Commissioner is not obliged to accept the taxpayer’s explanations; however, when he or she rejects these explanations, he or she must give some reason for doing so,” the tax tribunal said.

“He or she must give the particular facts upon which his or her conclusions are based, and those facts must appear in the record.” — John Victor D. Ordoñez

Philippines ranks 33rd in economy diversification

The Philippines ranked 33rd out of 103 countries, with an average of 104.43 in the 2023 edition of the Global Economic Diversification Index by Mohammed bin Rashid School of Government.

Philippines ranks 33<sup>rd</sup> in economy diversification

Two entities barred from securing money service business licenses

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THE BANGKO SENTRAL ng Pilipinas (BSP) has disqualified two firms from securing a money service business (MSB) licenses after they were found operating as such without proper registration.

A circular letter signed by BSP Deputy Governor Chuchi G. Fonacier dated Feb. 15 said the Monetary Board has disqualified Kidlat Fast Cash, Inc. and Tong’s Money Changer from registering with the central bank.

The two firms were disqualified from obtaining a license to engage in any activity supervised by the BSP after operating as MSBs without prior BSP registration.

Any sole proprietorship owned and controlled by their owners has also been banned from registering with the BSP.

Kidlat Fast Cash, Inc. was located in Dumaguete City, Negros Oriental with Ernesto R. Ramas-Uypitching as one of the owners, while Tong’s Money Changer is located in Panglao, Bohol, with Jered Jane Yap as the point person.

The disqualification is in accordance with Section 901-N of the BSP’s Manual of Regulations for Non-Bank Financial Institutions.

The central bank earlier said that disqualifying firms is part of its efforts to address the proliferation of entities operating unauthorized MSBs.

Pawnshops, along with foreign exchange dealers, money changers, and remittance agents, are considered as MSBs by the BSP.

As of end December 2022, BSP-registered money service businesses had 7,584 head offices and branches nationwide.

Pawnshops and MSBs are seen by the BSP as access points for the financially unserved and underserved areas in the country. — K.B. Ta-asan

Portugal bans new licenses for Airbnb rentals to address housing crisis

REUTERS

LISBON — Portugal announced on Thursday a hefty package of measures to tackle a housing crisis, including the end of its controversial “Golden Visa” scheme and a ban on new licenses for Airbnbs and other short-term holiday rentals.

Rents and house prices have skyrocketed in Portugal, which is among the poorest countries in Western Europe. Last year, more than 50% of workers earned less than 1,000 euros per month while in Lisbon alone, rents jumped 37% in 2022.

Low salaries, a red-hot property market, policies encouraging wealthy foreigners to invest and a tourism-dependent economy have for years made it hard for locals to rent or buy, housing groups have said. Portugal’s 8.3% inflation rate has exacerbated the problem.

Prime Minister Antonio Costa said the crisis was now affecting all families, not just the most vulnerable.

It is not clear when the measures, worth at least 900 million euros ($962.19 million), will come into effect. Costa said some would be approved next month and others will be voted on by lawmakers.

A mechanism would be introduced to regulate rent increases, he added, and the government will offer tax incentives to landlords who convert tourism properties into houses for locals to rent.

Left Bloc party MP Mariana Mortagua criticized the measures, saying the government was giving tax breaks to landlords who have already “benefited from (housing) speculation”.

New licenses for tourism accommodations, such as Airbnbs, will be prohibited – except in less populated rural areas.

The Social Democrats said the measures were an “attack” on the rights of property owners and businesses.

To address the housing shortage, Costa said the state would rent vacant houses direct from landlords for a period of five years and put them on the rental market.

Portugal will end its golden visa program, which offers EU passports to non-EU nationals in return for investments including in real estate and has been criticized for boosting house prices and rents.

The scheme attracted 6.8 billion euros in investment since its launch in 2012, with the bulk of the money going into real estate.

Housing groups said the measures would mean little if the government continued to promote other policies to attract wealthy foreigners to Portugal, such as the “Digital Nomads Visa” introduced in October, which gives foreigners with high monthly income from remote work to live and work from Portugal without paying local taxes.

At a small housing protest in Lisbon, 23-year-old activist Andreia Galvao accused the government of failing to live up to promises it made to address the housing crisis in the past.

“The goal was that by 2024 all Portuguese would have access to quality housing – it doesn’t look like that will happen,” she said. “The situation is dramatic.”

The “Housing is a right” group said the measures do not change the “system in place” in which large real estate investment funds control a significant chunk of the market.

“For the vast majority of people, rents will remain unaffordable and buying a house will continue to be a dream,” it said. — Reuters

SM Store taps fintech for shoppers’ financing

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THE SM STORE signed a partnership deal with Salmon, a financial technology (fintech) startup company, to provide its customers with point-of-sale services.

In a press release on Monday, Salmon said the partnership would provide the opportunity for SM Store customers to buy products via installment financing.

“From now on customers of SM Store will have the opportunity to buy their products using the Salmon point-of-sale service giving them access to installment financing as well as greater freedom and flexibility,” the company said

This partnership with the department store chain Salmon will now allow customers to purchase SM Store products without “long approval processes and needless paperwork.”

“SM Store attracts a large number of Filipinos looking for a great shopping experience, and Salmon will now be there to make this experience better and even more affordable,” said Salmon Co-Founder Raffy Montemayor.

The company also has plans to expand alongside well-known retail brands to help shoppers through quick installment loans.

“We are firmly convinced that using financial products, obtaining loans, paying bills and all other time-consuming financial routine will eventually be seamlessly integrated into our daily lives,” Mr. Montemayor said.

The SM Store is a subsidiary of SM Investment Corp., which is also into the property business and financial services. — Adrian H. Halili

Discover a new way of living at Haraya Residences: A vertical gated village for the modern era

Shang Robinsons Properties, Inc. (SRPI), a joint venture between Shang Properties, Inc. and Robinsons Land Corporation unveils its latest project: Haraya Residences.  It is a stunning two-tower development featuring 558 homes in the first-to-rise South Tower, and more units in the next phase as the North Tower follows. The development also highlights unique indoor and outdoor amenities spanning 2,270 sqm. and 2,500 sqm. respectively. Located at the heart of Bridgetowne Estate in Pasig, Haraya Residences is a luxury vertical gated village that boldly reimagines modern living in its design and features – thoughtfully planned to complement the ever-evolving lifestyle and leanings of today’s discerning urban dweller.

Jose Juan Jugo, Executive Vice President, Shang Properties, Inc. shares, “A new era requires new thinking. It demands a new understanding of the home; how we live, interact, unwind, and be productive. Together with the finest architects, designers and artisans, we deliver this unique vision that offers an uncompromising new perspective on cosmopolitan living.”

He expounds, “Haraya in Filipino means ‘imagination’ so we held our mission sacred, to envision new possibilities for homeowners, introduce meaningful innovation, and develop inventive spatial configurations that provide comfort, freedom, and inspiration.”

Open living like you’ve never experienced before

SRPI collaborated with top design firms—P&T Group, FM Architettura, and P Landscape—to realize the vision of Haraya Residences.

P&T Group Architect and Director Edgar Cozzio describes, “At Haraya Residences, the shape of the buildings gave us a lot of unique opportunities to create deep spaces that allow residents to feel safe and cocooned in their homes but at the same time enjoy a sense of freedom through the generous outdoor living space. We wanted to broaden the outdoor space to bring in that connection with nature – to feel fresh air and feel the outside world while inside.”

Design collaborator Francesca Muzio, founder and CEO at FM Architettura, adds, “The idea of traditional living is gone. The way we use the spaces in our homes nowadays is very different. There is a new awareness on the importance of domestic comfort and a desire for more tactile homes—this has been all the more evident—along with having al fresco spaces and opportunities to be closer to nature. In Italy, we have a concept called loggia. It’s an extension of your home, but also a part of the exterior; a space that can take on many personalities—an intimate garden for example, or an outdoor living room. The idea is to create a flexible layout, discovering new relationships and interactions between spaces that allow for a more contemporary lifestyle. Our design firm calls this concept a “pixelated layout”— a reimagining of the modern home.”

Step outside into the heart of your home

Haraya Residences presents one-, two-, and three-bedroom suites designed to create more fluidity between interior and exterior living, with spatial configurations that expand the very notion of a home.

The One-Bedroom Unit re-imagines the traditional one-bedroom layout with additional flexible space and a loggia that expands the airy living room. A curvilinear glass partition provides privacy and flexibility when needed, and unifies the living room into a home that is perfect for relaxing and entertaining alike. Meanwhile, the Signature One-Bedroom offers an expansive living room configuration that integrates an innovative curvilinear den and more loggia space, along with a spacious master bedroom and en suite bathroom, ideal for those seeking additional flexibility and comfort.

The Two-Bedroom Unit, on the other hand, has expansive windows that extend from the lofty living room to the guest and master bedrooms, opening the home to sweeping panoramic views. Complete with a spacious en suite bathroom and a walk-in closet, the master bedroom also provides functionality and comfort; while the voluminous loggia nestled between the dining and living areas bridges the interior and exterior to create an airy space full of natural light.

Finally, the Three-Bedroom Unit represents the full expression of Haraya Residences’ unique al fresco design vision, where interior spaces merge seamlessly with the outdoors through loggias. Designed for families and those seeking the luxury of space, the Three-Bedroom Unit is an exquisite balance of private and entertainment areas, offering sweeping views from the residence.

Rediscover a sense of vibrancy

The amenities at Haraya Residences are the heart of the development—where privacy, community, and vibrant landscaping come together.

Featuring a variety of unique venue spaces and lounges, Haraya Residences’ indoor amenities span up to 2,270 sqm. Designed as extensions of their very own homes, residents can freely catch a movie with family and friends at The Viewing Room; bookworms can curl up with a novel at The Library; and couples can wine and dine in exquisitely furnished function rooms. Furthermore, celebrants can host private parties at the Chef’s Kitchen; students and employees can work collaboratively with colleagues at the Studio; families can enjoy activities at the game room and children’s playroom; fitness enthusiasts can get active at the gym; executives can gather for meetings at the Tea Room; and guests can marvel at stunning panoramic views of the skyline while dining at the Lobby Lounge.

Alternately, Haraya Residences’ outdoor amenities spans up to 2,500 sqm, featuring a variety of beautifully tended green spaces and private nooks. The whole family can unwind at the swimming pools and children’s play areas; students and professionals can decompress at the jacuzzi after a long day; while others can rejuvenate through yoga under the swaying trees.

A sense of place, a sense of community

Muzio adds, “From the beautiful entrance, the impressive amenities, to the units, there has to be a sense of place. Also, for us, the experience of a private community is the new amenities component. What we mean by this is that common areas are not only spaces that residents can use, but are natural extensions of their homes, places where residents can cultivate their passions, recharge, rejuvenate, and maybe most importantly, connect with neighbors, friends and family.”

Cozzio ends, “Haraya Residences engages all your senses. It is a home to return to, an escape from outside stresses. It is a sanctuary to enjoy the family and to socialize with friends. How we live and where we live is ever changing. Cities grow and how we live in them matters greatly for our health and the health of the community. A well-planned and a well-thought-of development such as Haraya Residences—in harmony with the environment, bringing the outdoors in through the loggias, incredible landscaping, stunning views—is paramount in improving quality of living.”

Discover a new way of living at the heart of Bridgetowne, Pasig City. Welcome to Haraya Residences. For more information, visit www.harayaresidences.com, call 0917 5-HARAYA (427292), or follow @harayaresidences on Instagram and @harayaresidencesofficial on Facebook.

 

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Fantasy series focuses on Philippine heroine

AFTER its success with historical series Maria Clara at Ibarra, GMA Network again turns to the country’s past — again with a twist of fantasy — with Mga Lihim ni Urduja which premieres on Feb. 27, replacing the earlier time-travel tale based on Joe Rizal’s famous novel, Noli Me Tangere and El Filibusterismo.

The drama, set in a pre-colonial world, showcases a modern adventure.

It is loosely based on the legendary warrior princess — or hara – Urduja. She is mentioned in the travel accounts of Ibn Battuta in the 1400s, where he was impressed by her military exploits. She is believed to have been from the province of Pangasinan.

The stars of the show Encantadia — Kylie Padilla, Gabbi Garcia, and Sanya Lopez — reunite in the new series. as Gem, Crystal, and Hara Urduja, respectively.

Gem, a modern-day police officer, and Crystal, a jewelry designer, recover priceless jewelry known to be the magical amulets of Hara Urduja. To defeat a nemesis that they never imagined to be so closely linked to both of them, Gem and Crystal must deal with personality problems as well as the astonishing realization that they may be long-lost half-sisters and gifted descendants of Urduja.

“I’m surprised that I was included in the cast,” Ms. Lopez said in a press conference on Feb. 15 at Le Reve Pool and Events venue in Quezon City. She added that she is happy that she reunited with the her fellow cast members from Encantadia.

“Si Urduja ibang klase siya at magandang role siya para sa akin, kaya ko siya tinanggap (Urduja is a unique role and for me it is beautiful, that’s why I accepted the role).”

“It’s my first time to play a policewoman, so it’s a very different place in the craft,” said Ms. Padilla, who has previously done action scenes in fantasy shows.

Also in the cast are Arra San Agustin, Michelle Dee, Vin Abrenica, Kristoffer Martin, Pancho Magno, Jeric Gonzales, Rochelle Pangilinan, and Zoren Legaspi.

Co-director Jorron Lee Monroy, without stating any figures, said that the series is also a big-budget project which utilizes filmmaking technology that will include graphics as if living in a virtual world.

The series tackles the theme of women empowerment and the narrative of how women held positions of power during the precolonial period.

“Sometimes, we are wrong about how we think of ourselves and how we belittle our strengths,” concept creator and head writer Jojo Tawasil Nones said of the show’s message.

“Matagal na tayong pinapaniwalang hanggang biktima lang ang ating pwedeng gampanan. Pero tayo ang lahi ng mandirigma na palaban at matatapang (For a long time, we were made to believe that we could only play victims. But we are a race of warriors who fight and are brave),” he said.

“Whatever you are into, you should be proud of it. We are happy to be creating something for the Filipino audience and hopefully something for the international audience that we can be proud of,” associate director Ralf Malabunga said.

Also in the show’s creative team are director Aloy Adlawan, senior creative consultant Agnes Gagelonia-Uligan, content development consultant Ricky Lee, senior writer John Roque, writers Renei Dimla and Patrick Ilagan, and contributing writer Jai Shane Cañete.

Mga Lihim ni Urduja premieres on Feb. 27. It airs weeknights at 8 p.m. and at 9:40 p.m. on GTV. — Michelle Anne P. Soliman

Philippines: Balance of payments position

THE PHILIPPINES’ balance of payments (BoP) position swung to a surplus in January from a deficit a year ago, reflecting the proceeds of the government’s global bond issuance, the Bangko Sentral ng Pilipinas (BSP) said on Monday. Read the full story.

Philippines: Balance of payments position

How PSEi member stocks performed — February 20, 2023

Here’s a quick glance at how PSEi stocks fared on Monday, February 20, 2023.

Peso rises on bets of more BSP hikes

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THE PESO strengthened against the dollar on Monday after the Bangko Sentral ng Pilipinas (BSP) signaled more rate hikes to come as it seeks to stem elevated inflation.

The local currency closed at P54.95 versus the greenback on Monday, appreciating by 29 centavos from Friday’s P55.24 finish, data from the Bankers Association of the Philippines showed.

The peso opened Monday’s trading session weaker at P55.31 per dollar. Its intraday best was its closing level of P54.95, while its worst showing was at P55.32 against the greenback.

Dollars traded went down to $717.4 million on Monday from $878.3 million on Friday.

“The peso appreciated following the impact of last week’s BSP monetary policy decision, wherein BSP Governor Medalla signaled at more local rate hikes this year,” a trader said in an e-mail.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort also said in a Viber message that the central bank’s policy decision and signals of another rate increase next month supported the peso against the dollar.

The BSP on Thursday hiked benchmark interest rates by 50 basis points (bps) for a second straight meeting, bringing its policy rate to 6%, amid higher prices and rising inflation expectations.

BSP Governor Felipe M. Medalla said after the meeting that they could not rule out a third or fourth rate increase this year, and could deliver a 25-bp or 50-bp hike at their next review on March 23.

Mr. Ricafort added that the peso appreciated after global crude oil prices eased over the weekend.

Oil futures fell sharply on Friday amid signs of ample supply along with concerns of more US Federal Reserve hikes, which could weigh on demand.

US crude settled down 2.74% at $76.34 per barrel and Brent finished at $83.00, down 2.51%.

However, on Monday, Brent edged up 58 cents to $83.58 a barrel, while US crude rose 45 cents to $76.79.

For Tuesday, the trader said the peso could weaken anew against the dollar on expectations of improved US manufacturing data.

The trader and Mr. Ricafort expect the peso to trade between P54.85 and P55.10 per dollar on Tuesday. — A.M.C. Sy

PSEi declines amid hawkish hints from Fed, BSP

STOCKS dropped on Monday as investors were cautious ahead of the release of minutes of the US Federal Reserve’s latest meeting and after the Bangko Sentral ng Pilipinas (BSP) hinted at more rate hikes moving forward.

The benchmark Philippine Stock Exchange index (PSEi) went down by 34.90 points or 0.51% to close at 6,744.12 on Monday, while the broader all shares index lost 13.94 points or 0.38% to end at 3,607.75.

“Philippine shares slipped ahead of the upcoming Fed meeting as US inflation weighed on investor sentiment. Market participants are overall still wary on Fed’s rate adjustments to tame inflation,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The PSEi ended lower for the third time as market continued to price in more rate concerns, with expectations for the Fed rate hike now moving to a 50 bps (basis points) next month from 25 bps,” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message.

Minutes of the Fed’s Jan. 31 to Feb. 1 meeting will be released on Wednesday. At that review, the US central bank raised its target interest rate by 25 bps to a range between 4.5% and 4.75%.

Some Fed officials have said they would support a bigger rate hike at their March 21-22 meeting following the release of data showing sticky US inflation.

The US consumer price index increased 0.5% last month after gaining 0.1% in December. In the 12 months through January, the  consumer price index increased 6.4%.

“The local bourse lost 34.90 points as investors remained cautious amid the hawkish stance of the Bangko Sentral ng Pilipinas and Fed,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

BSP Governor Felipe M. Medalla said after their policy meeting last week, where they raised borrowing costs by 50 bps, that a third or maybe fourth rate hike is likely this year.

He also said they could consider a 25-bp or 50-bp increase at their March 23 meeting.

All sectoral indices closed lower on Monday. Mining and oil declined by 136.33 points or 1.21% to 11,090.98; industrials dropped by 66.42 points or 0.67% to 9,726.54; property shed 14.44 points or 0.48% to end at 2,944.60; holding firms went down by 28.04 points or 0.43% to 6,457.34; financials lost 7.05 points or 0.38% to close at 1,811.75; and services inched down by 2.56 points or 0.15% to 1,700.57.

Value turnover declined to P3.3 billion on Monday with 483.44 million shares changing hands from the P5.68 billion with 851.14 million issues traded on Friday.

Decliners outnumbered advancers, 115 versus 72, while 47 names closed unchanged.

Net foreign selling declined to P43.79 million on Monday from P121.29 million on Friday.

AP Securities’ Mr. Temporal placed the PSEi’s support at 6,650 and resistance at 6,900, while Mercantile Securities’ Mr. See put support at 6,550 to 6,762 and resistance at 7,000 to 7,150. — Ashley Erika O. Jose

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