Cautious trading seen ahead of GDP, labor data

August 7, 2022 | 9:00 pm

STOCKS may move sideways this week ahead of the release of latest Philippine gross domestic product (GDP) and labor data and expectations of an aggressive rate hike from the Bangko Sentral ng Pilipinas (BSP) next week after inflation hit another near four-year high in July.

The Philippine Stock Exchange index (PSEi) snapped its three-day rally on Friday, declining by 77.61 points or 1.19% to close at 6,405.50, while the broader all shares index went down by 29.70 points or 0.85% to 3,432.06.

Still, week on week, the PSEi went up by 89.57 points or 1.42% from its close of 6,315.93 on July 29.

“The index fell [on Friday] likely due to profit taking following three straight days of gains, as well as fund flows relating to the PSEi rebalancing,” China Bank Securities Corp. Research Director Rastine Mackie D. Mercado said in an e-mail.

“While investors appeared to have initially shrugged off the July inflation report, this may have eventually factored into investors’ reasons to secure some recent gains,” Mr. Mercado added.

For this week, he said that he expects continued market weakness due to the release of latest GDP and labor data on Tuesday.

“Reactive moves to those releases are expected, spurring volatility in the near term. However, we do note that recent momentum may be a product of investors’ bullishness on forward prospects despite prevailing risks — so there’s still a good chance of a continuation rally after these events,” Mr. Mercado said.

Philstocks Financial Senior Research Analyst Japhet Louis O. Tantiangco said the market is expected to remain cautious as investors continue to digest corporate results and ahead of the BSP’s policy meeting on Aug. 18.

“The robust Q2/1H corporate results may still give investors’ sentiment a boost. The market may deal with concerns over a possible aggressive policy action by the BSP in their meeting this August, however, following the July inflation print, which came in at 6.4%,” Mr. Tantiangco said in a Viber message.

“Investors are also expected to watch out for our second quarter GDP data and June labor data for clues on the health of our economy,” he said.

BSP Governor Felipe M. Medalla last week said the central bank still has room to hike borrowing costs without sacrificing the economy’s recovery as real interest rates remain negative. He said their planned hike of 25 basis points (bps) or 50 bps at their Aug. 18 meeting is still supportive of growth.

Meanwhile, a Businessworld poll of 18 economists and analysts last week yielded a median GDP growth estimate of 7.5% for the second quarter. This is lower than the 8.3% expansion in the first quarter and the 12.1% logged in the same period a year ago.

China Bank’s Mr. Mercado placed the PSEi’s immediate support between 6,380-6,400 range, and resistance at 6,600, while Philstocks Financial’s Mr. Tantiangco put immediate support at 6,400 and resistance at 6,600. — J.I.D. Tabile

Peso likely to weaken

August 7, 2022 | 9:00 pm

THE PESO could depreciate versus the dollar this week on expectations of a wider trade deficit and weaker second quarter gross domestic product (GDP) growth.

The local unit closed at P55.20 per dollar on Friday, gaining 40 centavos from its P55.60 finish on Thursday, based on Bankers Association of the Philippines data.

However, the peso weakened by seven centavos from its P55.13 finish a week earlier.

The local currency opened Friday’s session at P55.48 against the dollar. Its weakest showing was at P55.50, while its intraday best was at P55.15 versus the greenback.

Dollars exchanged increased to $1.22 billion on Friday from $986.6 million on Thursday.

The peso appreciated versus the dollar after a sharp decline in global oil prices, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the gradual downtrend in oil prices could reduce inflation pressures.

For this week, Mr. Asuncion said the market will factor in trade balance and GDP data to be released on Tuesday.

The peso may also be weighed down by expectations of a weaker second quarter GDP growth report, he added.

A BusinessWorld poll of 18 analysts last week yielded a median GDP growth estimate of 7.5% for the April-June period, lower than the 8.3% seen in the first quarter and the 12.1% logged in the same period a year ago.

For this week, Mr. Asuncion gave a forecast range of P55.55 to P56.10 per dollar, while Mr. Ricafort expects the local unit to move within a stronger P54.80 to P55.30 range. — K.B. Ta-asan

PHL team stuns powerhouse Slovenia as Frayna shocks Unuk

August 7, 2022 | 8:08 pm

Giant win zooms Filipino to no. 17 place

PHILIPPINE first Woman Grandmaster Janelle Mae Frayna — FIDE

JANELLE Mae Frayna pounced on the time-troubled Laura Unuk’s end game blunder as she powered the Philippines to a shock 2.5-1.5 win over a heavily favored Slovenia in the eighth round on Saturday night and back into 44^th World Chess Olympiad contention in Chennai, India.

With her team tied at 1.5 apiece and her position still has a potential for a draw despite going a pawn down, the country’s first Woman Grandmaster (WGM) persisted and went for a lucky punch that caught Ms. Unuk straight to the face after the Slovenian succumbed to deep time pressure and blundered away an easy split.

It sealed the giant-sized triumph for the Filipinas, who are being sponsored by the Philippine Sports Commission, and a place in the Top 20 as they are currently jammed at 17^th spot with nine others with identical 10 match points.

Ms. Frayna wasn’t the only heroine though as Jan Jodilyn Fronda stunned fellow Woman International Master (WIM) Zala Urh on board two, while WGM-candidate Kylen Joy Mordido battled WIM Teja Vidic to a standoff on board four.

WIM Marie Antoinette San Diego tried to salvage a draw from a losing position but fell short in the end and succumbed to WIM Lara Janzelj on board three.

Woman FIDE Master Shania Mae Mendoza has replaced Ms. San Diego in the roster as the country fights a powerhouse, 12^thseed Hungary in crucial ninth-round showdown at press time that would make or break its bid for a best finish in this 11-round biennial event.

MEN’S TEAM
In the men’s side, GM Banjo Barcenilla fell short in his bid to salvage a draw and lost to GM Nikolaos Theodorou on board two that sealed the Filipinos’ heartbreaking 2.5-1.5 defeat to the fancied Greeks.

GMs Mark Paragua and John Paul Gomez and IM Paulo Bersamina all drew their respective foes on boards one, three and four, respectively.

The stinging result sent the country down into a 22-country logjam at No. 35 with 10 points.

They were playing the higher-rated Georgians at press time. — Joey Villar

King Whale of Taipei battles Army Black mamba

August 7, 2022 | 8:07 pm

Game Monday
(MOA Arena)
2:30 p.m.- King Whale Taipei vs Army Black Mamba
5:30 p.m.- Cignal vs Creamline

Creamline aims to close in on a finals berth as it faces elimination round conqueror Cignal today in the Premier Volleyball League Invitational at the Mall of Asia Arena in Pasay City.

Visiting team King Whale of Taipei also debuts today versus Army Black Mamba at 2:30 p.m., which will precede the 5:30 p.m. main offering pitting the Cool Smashers, unbeaten in two semis games, and the HD Spikers, who split their first two semis outings.

Cignal breathed life to their bid of claiming one of the two spots in the one-game finals slated Aug. 14 also at MOA after edging Army Black Mamba, 22-25, 25-27, 25-21, 25-19, 15-12, last Saturday in Antipolo.

Riri Meneses is expected to ride the crest of her spectacular 23-hit performance, easily her best game of the conference thus far, that saved the day for the Open Conference third placer.

Meanwhile, the league announced yesterday the withdrawal of the Philippine team after its National University players were not allowed by their team manager to suit up due to fear of potential injuries.

The Nationals were originally scheduled to clash the league-leading Creamline Cool Smashers in the main game at 5:30 p.m.

League president Ricky Palou said it would resume the tournament with only five squads instead of six.

“Yes, we’ll resume with five teams,” said Palou.

The Philippine team was supposed to fill in for Kobe Shinwa of Japan, who pulled out after one of its players tested positive for COVID-19. — Joey Villar

Obiena settles for bronze medal finish in Silesia, Poland

August 7, 2022 | 8:07 pm

WORLD NO. 3 pole-vaulter Ernest John “EJ” Obiena fell short in his bid to breach the six-meter plateau and settled for a bronze medal finish in the Silesia Diamond League in Poland over the weekend.

The 26-year-old Asian record-holder managed to just clear 5.73 meters, but it was enough to snare him a podium finish in a star-studded event topped by world champion and record-holder Armand Duplantis of Sweden, who set a new meet mark of 6.10m.

Norwegian Sondre Guttormsen snatched the silver after clearing an identical 5.73m and edging the Filipino star via count back after posting the height right on his first attempt compared the latter’s second try.

Mr. Obiena went for 5.83m but failed in three attempts.

The clearance was way below the 5.94m Mr. Obiena registered in capturing the country’s breakthrough medal — a bronze — in the World Championships done in Eugene, Oregon late last month.

But at least, Mr. Obiena had bested two marque rivals in World Championships and Tokyo Olympics silver medalist Christopher Nilsen of the United States and 2016 Rio Games gold winner Thiago Braz of Brazil. Mr. Nilsen finished only fifth with a 5.53m, while Mr. Braz did not even clear 5.53m in three tries.

Mr. Obiena will try to accomplish what he had failed to do as he is scheduled to compete in another event in Hungary in a few days. — Joey Villar

PNVF releases NU student-athletes from national training program

August 7, 2022 | 8:06 pm

Lady-Bulldogs-The-UAAP — NU LADY BULLDOGS — THE UAAP

THE Philippine National Volleyball Federation (PNVF) on Sunday announced the Premier Volleyball League (PVL) Invitational champion will replace the all-collegiate national team in the Asian Volleyball Confederation Cup the country will host in two weeks.

The decision was made after the top official of National University (NU), which has 12 of the 14 players originally slated to comprise the Nationals, was informed by PNVF President Ramon Suzara of the news.

“We are now writing to inform your good office, though with much regret, that we shall be releasing the NU student-athletes and coaches from the National Training Program, effective today (Sunday) Aug. 7, 2022,” said the PNVF in the latter.

“We have been compelled to make this difficult yet important decision due to the recent turn of events within the team’s training schedule and corresponding availability. We feel that the said student-athletes and coaches, alongside the team manager Engineer Bing Diet, may not be able to commit to perform at their best level given a number of restrictions and conditions that hinder the continuous conduct of training and overall program,” it added.

The PNVF stressed: “However difficult it may have been, please trust that with this decision, we have considered to serve only the best interests and utmost welfare of the student-athletes, the coaches, the university management, the national team program, while keeping aligned with PNVF’s strategic goals as a National Federation, fully responsible and accountable for the sport of volleyball in the Philippines.”

The released NU Lady Bulldogs were Ivy Lacsina, Mhicaela Belen, Shaira Jardio, Evangeline Alinsug, Cess Robles, Sheena Toring, Jen Nierva, Nicole Mata, Alyssa Solomon, Camilla Lamina, Kamille Cal and Joyme Cagande.

The PNVF will request the PVL Invitational champion to include the two non-NU players on the national team — Jelai Gajero of California Precision Sports and Trisha Genesis of Akari — to be its 13^th and 14^th player in the lineup.

The reorganization of the national team to the AVC Women’s Cup came a day after the announcement of the composition of a team composed of collegiate players.

PVL President Richard “Ricky” Palou, also the PNVF treasurer, as well as the management of the potential winners of the Invitational, agreed to lend their players for the AVC Cup event set from August 21 to 29.

The PVL Invitational is currently in its semifinal stage with Creamline ahead with a 2-0 won-lost card, followed by PLDT (2-1), Cignal (1-1) and Army (0-3).

The NU-laden erstwhile national team was supposed to be one of two guest teams — the other being Chinese-Taipei club King Whale — in the Invitational, which it will use as an official national team program tune-up for the AVC Cup.

The NU-led erstwhile national team was supposed to face Creamline at 5:30 p.m. on Monday, but following the reorganization of the squad, the PVL had to revise its schedule. — Joey Villar

Germany-based Benedicto rules IRONMAN 70.3 Philippines in Lapu-Lapu, Cebu

August 7, 2022 | 8:06 pm

LAPU-LAPU CITY, Cebu — On a gloomy Sunday morning, victory shone bright on seasoned Filipino triathlete August Benedicto.

Ranged against a slew of heavy challengers from 46 nations, the Filipino race warrior came, saw and conquered the historic Mactan island — shaded by dark clouds but filled with ever-beaming Cebuano crowd — in a glorious swim, bike and run to the championship of the Megaworld IRONMAN 70.3 Philippines presented by AIA Vitality at the Mactan Newtown.

The 38-year-old Tarlac native but now based in Germany covered the dreaded 1.9-km swim, 90-km bike and 21-km run course in four hours, 29 minutes and 16 seconds to mark his triumphant homecoming and race comeback after three years due to the pandemic.

Mr. Benedicto’s conquest (35:17 in swim, 2:57:21 in bike and 1:29:43 in run) also marked the IRONMAN’s return in one of its staple race venues for the first time since 2019, fittingly crowning August in the first Sunday of the month he was named after.

Coming in by his side was Negros Occidental pride Ines Santiago, who was hailed as IRONMAN queen by clocking 5:23:14 in the endurance race that featured over 2,000 participants.

“This is my first race since 2019 so I’m happy with this win. More than that, I’m glad for the return of IRONMAN here in Cebu. They love triathlon here,” said Mr. Benedicto, who also won the Asian Elite category in that last Cebu IRONMAN.

With only three months of preparation from a usual year-long buildup, Mr. Benedicto found his return a hard nut to crack as he was left behind by 15 athletes in the swim competition that he admitted as among his Achilles’ heels.

But his pet event on the road was a different story as the former pro cyclist dazzled in the 90-km bike course along the Cebu-Cordova Link Expressway (CCLEX) — the newest and biggest bridge in the country — and cut through the bulk of the lead group to only trail two rivals entering the ultimate run tiff.

There, the 2007 SEA Games duathlon bronze medalist almost ran out of steam before banking on his veteran pedigree for a last gasp in overtaking Australian Mark Jansen in the last loop around seven kilometers from the Mactan beach finish line.

More than that, him mustering will and strength in the final hurrah was from the cheers of jubilant Cebuanos along the way — somehow transferring their spirit to the athletes after clawing back in a challenge of their own from the devastation of super Typhoon “Odette” last year.

“I always get the energy from the crowd. Veteran’s move na rin,” added Mr. Benedicto, who traveled along without his family from Europe, where he left his bike.

With the help of Sunrise Events, Inc., organizer of IRONMAN in the Philippines, Mr. Benedicto found a bike to borrow and the rest was history.

Ms. Santiago, a 40-year-old teacher in the University of Asia and the Pacific, for her part was just thankful for the return of triathlon races in the country after she also won the IRONMAN Subic in March.

“I’m just extra grateful since we were not able to race after two years. Now that we’re back, there’s that extra motivation and extra hunger to win,” said Mr. Santiago, also lauding the new and majestic bike ride along the 8.9-km CCLEX.

Mr. Benedicto (35-39) and Mr. Santiago (40-44) also ruled their respective age — group categories of the race backed by City of Lapu-Lapu, CCLEX, Municipality of Cordova and the City of Cebu. Mr. Jansen (4:36:05) and John Dedeus Alcala (4:37:54) completed the overall men’s podium. — John Bryan Ulanday

Fernando Alonso

August 7, 2022 | 8:05 pm

The dominoes fell, but definitely not in the way Alpine envisioned. For a while there, the Formula One constructor appeared to have an enviable talent depth, what with two-time champion Fernando Alonso and promising Esteban Ocon occupying seats and upstart Oscar Piastri waiting in the wings. Amid all the uncertainty surrounding the 2023 season, however, the Groupe Renault-owned team has found itself in dire straits; all too suddenly, it no longer has a second driver it can confidently look to as a vital cog in its push for competitiveness.

Timing — or, to be more precise, bad timing — played a role. Armed with an expiring contract and unable to view the medium term with favor, Alonso went about exploring his options elsewhere. He might well have refrained from engaging in wanderlust had he been offered a deal longer than the single guaranteed year that principal Otmar Szafnauer was willing to make. In any case, he knew that his days with Alpine were numbered, what with Piastri ready to make the jump to the big show. Meanwhile, the latter could not wait for confirmation of an assured seat, and thus surveyed the horizon.

Given the benefit of hindsight, Alpine may well have acted differently and given the slot to Piastri outright. Forget that the move would have painted it as cold-hearted and unmindful of motorsport history. After all, Alonso was himself not wary of negotiating behind the scenes, as history has shown more than once, and as his latest course of action again underscored. Instead, it hedged its position, playing both sides supposedly for minimum risk, only to wind up losing everything it had. The fact that it hitherto spent a lot hosting its top prospect in its Driver Academy serves to rub even more salt on its wounds.

It’s bad enough that Alpine will lose Piastri. What’s worse is that McLaren — with which it is currently locked in battle for fourth in Constructors Championship standings — appears to be getting him. To be sure, the operative word is “appears,” because, all things considered, the courts may well decide outcomes. Except is, for Alonso, celebrating a transfer to Aston Martin while vacationing in the Greek Isles, and after having left all and sundry in the dark.

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

Headline inflation rates in the Philippines (July 2022)

August 7, 2022 | 7:35 pm

Headline inflation quickened to its fastest pace in nearly four years in July, mainly due to soaring prices of food and higher transport costs. Read the full story.

National Government outstanding debt

August 7, 2022 | 7:34 pm

The National Government’s (NG) outstanding debt rose to a record-high P12.79 trillion at the end of June, beating the previous high of P12.76 trillion in April. Read the full story.

Tourism service norms for micro businesses set for major upgrade

August 7, 2022 | 6:58 pm

tourism-bohol-philstar — VILMA UY FACEBOOK PAGE

THE Department of Tourism (DoT) said it is planning to upgrade service standards for micro-sized companies in the industry with the aid of other agencies.

Tourism Secretary Maria Esperanza Christina G. Frasco said in a statement over the weekend that a technical working group (TWG) is currently working on a plan to improve the capacity of micro entrepreneurs engaged in tourism.

“We are facilitating this TWG for the purpose of commencing discussions on the implementation of standards to ensure high quality of tourism services which include regulations on accommodations, services, and pricing standards,” Ms. Frasco said.

Ms. Frasco proposes to include in the TWG the Departments of Trade and Industry (DTI), Interior and Local Government (DILG), and Agriculture (DA), as well as the Bureau of Fisheries and Aquatic Resources (BFAR).

She said the DoT is offering training sessions under the Filipino Brand of Service Excellence (FBSE) umbrella.

The FBSE program aims to “enhance and uplift the quality of services aimed at fostering excellent service to tourists as part of our distinct Filipino brand.”

The FBSE program offers modules in service excellence, understanding and engaging customers, and complaint handling.

“The training for the tourism community in Virgin Island, Bohol will commence next week,” Ms. Frasco said, following an incident of alleged overcharging by food vendors there.

The trainings “will be open to all interested tourism stakeholders, and will be facilitated by the DoT Office of Industry Manpower Development together with the DoT Region 7 Office in coordination with the local government units,” she added. — Revin Mikhael D. Ochave

Threat of Sri Lanka-style crisis seen diminishing if gov’t boosts agri output

August 7, 2022 | 6:58 pm

THE expansion of domestic food production and manufacturing output are expected to steer the Philippines away from falling into a Sri Lanka-type crisis, a bank economist said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that the government needs to “reduce reliance on imports by improving productivity of the agricultural sector to… help ease food prices and lower inflation.”

“Increasing the productivity of both agriculture and manufacturing will create more jobs and other (boost) economic activity,” Mr. Ricafort said.

He said agricultural and manufacturing account for at least 40% of the work force.

“Also, by boosting the productivity of the industrial sector (the Philippines can) reduce reliance on imports,” he added.

Maria Ela L. Atienza, a political science professor at the University of the Philippines, said in a text message that the government needs to focus on strengthening small businesses while avoiding excessive tax burdens on working-class families.

“Taxation should target big business and not middle and low-income families,” Ms. Atienza said. “While foreign investment is needed, we should not be totally dependent on them so that we are prepared during economic crises.”

Mr. Ricafort said the government should spend effectively and minimize corruption and “leakage” of public funds, which are critical in stimulating the economy.

Ms. Atienza also called for stronger institutions like the justice system, expanded people’s participation in governance, a reduction of red tape, and a resolution to long-standing threats to peace following the rule of law.

“There is also a need further to diversify (away from) structural dollar revenue sources such as exports, OFW remittances, BPO revenues, foreign tourism, as well as foreign investment/FDI to create more employment,” Mr. Ricafort said. — Matthew Carl L. Montecillo