Kia Sorento 2.2 SX 4×2 AT: K-posh

July 25, 2022 | 12:03 am

VELO_image1 — Midsize but not middling, the all-new Kia Sorento boasts luxury and safety. — PHOTO BY KAP MACEDA AGUILA

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It’s the luxury SUV you didn’t know about — until now

LET’S START at the end: It’s an injustice, really, that the Sorento is seemingly lost in the din of the colossal tussle of familiar names in the midsize SUV space. Because, well, the three-row entry from the land of K-pop and K-drama deserves its airtime for a myriad of reasons.

At first blush, the Sorento can throw you off because, save for the new Kia logo on the current interpretation of the signature Tiger Nose Grille, you could mistake it for a European vehicle — make that European luxury vehicle. That’s a compliment, of course, because while you weren’t looking, the South Korean car maker had been hard at work to up its game amid an ever-increasing number of competitors — particularly those located beyond the West Philippine Sea. If you don’t believe me, check out the all-new Carnival.

There’s both solid heft and character in the Sorento, with a cohesive exterior that doesn’t scream kitsch or “hey, look at me.” But once you do, the handsome front fascia draws you in, particularly when you turn on its impressive lighting set consisting entirely of LEDs (multi-reflector headlights, DRLs, and fog lamps). The vehicle’s hindquarters are just as gorgeous, with a long high-mount brake light (yes, LEDs within) affixed to the rear spoiler that protrudes past the roof. The rear combination lamps (say it with me, “LED”) are vertically oriented — a take both elegant and fresh. The trapezoidal design formed by all the crimping and sheetwork also serves to invite the viewer to behold the Sorento. Speaking of, you won’t miss the oversized “SORENTO” spelled out in matte silver on the lower part of the powered liftgate.

The Sorento also gets a healthy serving of the aforementioned matte silver for accents — such as the skid plates in the back and front, to the outside door handles, to a section of the rocker panel.

Powering the Sorento is Kia’s Smartstream diesel mill — a 2.2-liter in-line four-banger CRDI VGT. It promises up to 202ps at 3,800rpm and 441Nm from 1,750 to 2,750rpm. Drivers may access this goodness via an eight-speed dual clutch transmission which command the front wheels (19-inch alloys fitted with 235/55 tires). Multiple drive modes are available to the driver depending on the need for power versus the need to save on the expensive stuff (read: fuel): Eco, Comfort, Sport, and Smart. The other modes are self-explanatory; Smart mode apparently checks out your driving style and preferences, and automatically tailors performance and handling accordingly.

For most of us, the inside is where the Sorento will appreciably earn its price tag. This range-topping variant of the 4×2 that we tested costs P2.618 million, while the cheapest price of admission is at P2.418 million.

If you’re asking, yes, the Sorento will get your attention and hold it the minute you climb aboard. The leather-covered seats offer power adjustment for both driver and front passenger. The driver gets eight ways to tweak the seat plus four-way lumbar support with memory and cooling; the front passenger gets eight-way power plus cooling. There’s even a heating function should the front occupants need it. The A/C system also boasts secondary vents below the main ones on the side and center.

Second-row passengers also get some business-class loving. Aside from spacious leg and elbow room, there are adjustable headrests, and the entire row can be slid forward and backward as well; seatbacks may be tilted to your druthers. Among the best things about the Sorento are the highly user-friendly features and touches which show that designers applied quite a bit of critical thinking and, truth to tell, common sense. For instance, second-row occupants need not fight for real estate to charge their mobile devices. The left passenger can plug right into the USB slot on the driver’s seatback, the middle rider can plug underneath the second-row A/C vents, and the right passenger can reach forward and plug right onto the front-occupant’s seatback. Everybody happy.

The third row is equipped with its own accoutrements, for good measure. The convenience starts with but a push of a button atop the second-row seatbacks, which will tilt them and help in sliding them forward for ingress. Separate air-con vents for the left and right occupants (with a classy air-control knob located for the right-hand passenger) are present, along with dedicated cupholders for both and even a bin. There’s also a 12-volt outlet, just in case. That said, taller passengers may want to perish the thought of occupying that third row. As with many in the segment, this is reserved for smaller riders.

Going back to the front, there are three USB ports there as well, which can help you pair your phones via Android Auto or Apple CarPlay, as well as charge them. A wireless charging tray is additionally on the SX. The infotainment on the Sorento is predicated on an eight-inch touchscreen; Bluetooth connectivity is available should you need it. Your music or content will find expression on four woofers plus two tweeters.

In front of the driver is a 12.3-inch all-digital instrument cluster. My favorite part of this feature is a very thoughtful, intuitive safety touch. When you engage the left turn signal, the circular speedometer image switches to footage of the left side of the vehicle (through a camera mounted on the sideview mirror). When you switch the right turn signal on, the rev counter will display footage of the right side of the vehicle. It saved me from a potential collision once, when a motorcycle rider was sidling up to the side of the SUV and was in my blind spot until he showed up on the camera (and the blind spot detector icon on the sideview mirror was lit up).

Therein lies the strongest, most valuable trait of the Sorento — its considerable suite of safety measures. There’s a robust lane-keeping assistant, forward collision avoidance, rear cross traffic alert, 360-degree camera coverage (with a simulated top-view function that’s perfect when parking), and a wealth of other niceties that, again, help to endear this Kia to all who ride it.

If you’re looking at this segment and price point, now’s the time to add the Sorento to your list.

Mexico concerned by Chinese retailer Shein’s use of a Mayan design

July 25, 2022 | 12:03 am

shein-mexico — SCREENSHOT FROM FACEBOOK.COM/YUCACHULAS

MEXICO CITY — Mexico has questioned the use of cultural elements from the Mayan indigenous community by Chinese fast fashion company Shein in the design of one of its garments, prompting the retailer to remove the product from its website.

The Culture Ministry said some details of Shein’s “Fan-Trim Top with Floral Print” were similar to a traditional huipil embroidery made in 2017 by an artisanal clothing brand from southeastern Mexico.

“These designs have been passed down from generation to generation, so they are the product of a collective creativity corresponding to the Mayan people,” the ministry said in a letter to the company.

Shein, a fast-growing online store that has considered a New York listing, said on Thursday it had removed the product from its website and that it has no intent of infringing anyone’s intellectual property.

“We reaffirm our respect for artisans in Mexico and around the world,” a Shein spokesperson said via e-mail.

Mexican brand Yucachulas, responsible for the original piece, said on social media it was “deeply saddened” by what it called plagiarism.

“It represents a lack of recognition for the work of artisans who dedicate themselves to this job and make their living from handicrafts.”

The Mexican government has called in the past for large foreign firms to explain instances of what it says is commercial exploitation of distinctive elements of Mexico’s culture in their products. — Reuters

SEC advises the public to stop investing in Marsgas

July 25, 2022 | 12:02 am

THE Securities and Exchange Commission (SEC) has advised the public that Marsgas Petrochemical Products Trading is not registered with the commission and to cease investing in the said entity.

Marsgas Petrochemical, which also operates under the names Marsgas and Mars-Gas.com, entices the public to invest money with the promise of high monetary rewards or profits, said the SEC in an advisory released on Friday.

The SEC said that information gathered from the Facebook page of Marsgas Petrochemical showed that it has been inviting the public to invest with a promise of receiving 10% daily profits for 20 days.

In the entity’s “ways to earn,” an investor through direct referral is promised to earn P100 for every active invite. Through indirect referral, the investor is promised to earn P5 on different levels and from profits that will give 10% earnings for 20 days.

In the compensation plan, a P500 investment will give the investor a daily income of P50 for 20 days, which will bring P1,000 in total, including the capital. The rates in the posted plan go as high as P10,000, which is equivalent to a daily income of P1,000 or P20,000 in total.

The company is also said to post pictures of its Department of Trade and Industry business registration and Esso Mobil Certificate of Recognition issued to Mars Petrochem Pvt. Ltd., as a way of the enticing public to invest.

In its advisory, the SEC said Marsgas Petrochemical or the other names it uses “is not registered with the Commission and is not authorized to solicit investment from the public, not having secured prior registration and/or license to sell securities or solicit investments as prescribed under Section 8 of the Securities Regulation Code.”

The public is also advised to report any information regarding the said operation to the SEC’s Enforcement and Investor Protection Department at 8818-6047 or email at epd@sec.gov.ph. — Justine Irish D. Tabile

Yields on government securities mixed

July 25, 2022 | 12:02 am

By Abigail Marie P. Yraola, Researcher

YIELDS on government securities (GS) were mixed last week, with the central bank’s hawkish turn still affecting the market and following the results for the 10-year bond auction of the Bureau of the Treasury (BTr) last week.

GS yields, which move opposite to prices, increased by 6.91 basis points (bps) on average week on week, based on PHP Bloomberg Valuation Service Reference Rates as of July 22 published on the Philippine Dealing System’s website.

Rates at the short end of the curve went up, with the 91-, 182- and 364-day Treasury bills (T-bills) rising by 19.51 bps, 11.98 bps, and 26.61 bps to fetch 2.1364%, 2.7365%, and 3.137%, respectively.

The belly of the curve ended mixed. The two- and three-year Treasury bonds (T-bonds) went up by 14.16 bps (to 4.826%) and 3.05 bps (5.3035%), respectively. Meanwhile, the four-, five-, and seven-year T-bonds dropped by 3.48 bps (5.6958%), 4.88 bps (6.0175%), and 2.57 bps (to 6.4623%).

On the other hand, the long end of the curve moved upwards as yields on the 10-, 20-, and 25-year debt papers rose by 1.38 bps (6.8079%), 5.30 bps (6.8934%), and 4.93 bps (6.884%), respectively.

Total GS volume traded more than doubled to P10.693 billion on Friday from P5.039 billion seen on July 15.

“The curve continued to flatten and remains an offshoot of short-term rates being pressured with central bank policy-raising actions to address inflation (direct and indirect via the exchange rate) that is expected to still rise,” Security Bank Corp. Chief Investment Officer for Trust and Asset Management Group Noel S. Reyes said in an e-mail.

Mr. Reyes added that the flat curve seen shows an increasing preference for long maturities, which have reached “attractive” yields at the near 7% levels.

Similarly, a bond trader said in a Viber message that the market focused on the government’s “successful” 10-year bond auction.

“After the auction, yields dropped. As a result, investors try to add to their positions as current levels are good for yield pickup,” the bond trader added.

The bond trader said the week-on-week drop seen in the four-, five- and seven-year bonds was due to the auction, which also affected risk sentiment for other tenors.

The trader added that trading volume improved compared to the previous week largely due to increased interest in the 10-year bond and other long-tenored papers.

The Bangko Sentral ng Pilipinas (BSP) unexpectedly raised its benchmark interest rates by a record 75 bps in an off-cycle meeting on July 14 to temper soaring inflation.

BSP Governor Felipe M. Medalla has also said he would not rule out another rate hike when the central bank meets on Aug. 18.

Meanwhile, the government last week raised P35 billion as planned from its offer of reissued 10-year securities that have a remaining life of nine years and 11 months. Total bids reached P123.32 billion or more than thrice the amount on the auction block.

Rates awarded ranged from 6.8% to 6.89%, bringing the average yield for the bonds on offer to 6.865%, down by 28 bps from the 7.145% average and by 38.50 bps from the 7.25% coupon fetched for the series when it was first offered on June 21.

To accommodate the strong demand seen for Tuesday’s offering, the Treasury opened its tap facility to raise P20 billion more via the bonds for a yield-to-maturity of 6.865%.

For this week, the bond trader said the market will monitor the result of the US Federal Reserve’s policy meeting on July 26-27 and the BSP’s reaction to it.

“[This] week, should see consolidation, but pockets of buying should start to grow further given a large number of institutional and end accounts are still long on cash,” Mr. Reyes said.

Lula courts Brazil’s farmers ahead of vote, angering environmentalists

July 25, 2022 | 12:02 am

Brazil's former President Luiz Inacio Lula da Silva — Luiz Inacio Lula da Silva — REUTERS

BRASILIA — Former President Luiz Inacio Lula da Silva is luring allies from Brazil’s powerhouse farm sector to his presidential campaign, looking to fracture his rival’s base in a move that risks tensions with his own environmentalist supporters.

Agribusiness made big strides under Lula’s 2003-2010 government, but right-wing President Jair Bolsonaro has made a powerful connection with rural interests, vowing to push Brazil’s farming frontier deeper into the Amazon rainforest.

In contrast, Lula has promised “net zero deforestation” in Brazil within four years, bringing his rhetoric in line with greener thinking in Latin America’s leftist circles.

Still, in the capital Brasilia last week, Lula raised eyebrows by shoring up relationships with traditional farming interests, endorsing a Senate run by lawmaker Neri Geller, vice-president of the congressional farm caucus, and meeting with Senator Carlos Favaro, who also has strong agribusiness ties.

Mr. Geller, who was farm minister under Lula’s chosen successor Dilma Rousseff, told Reuters he saw more farm industry allies coming out for him, including Brazil’s “Soy King” Blairo Maggi, another ex-farm minister criticized as an apologist for deforestation.

Despite Lula’s double-digit lead over Bolsonaro ahead of the October election, many big names in agribusiness remain shy about talks with the leftist leader. Several farm industry leaders declined to answer Reuters’ questions about their conversations with the Lula campaign.

After meeting with Lula, Mr. Geller and Mr. Favaro took heat from a farm lobby group in their home state Mato Grosso, highlighting the hazards of breaking with Bolsonaro in farm country.

Lula also got blowback from the left over the meetings. Green advocates distrust Mr. Geller for trying to loosen environmental licensing and Mr. Favaro for pushing a bill to buy time for farmers and ranchers accused of invading public lands.

Lula’s former Environment Minister Marina Silva told newspaper Folha de S.Paulo that alliances with lawmakers such as Mr. Geller and Mr. Favaro would “maintain the country’s status as environmental pariah.”

Another former environment minister, Izabella Teixeira, who has helped to put together Lula’s government program, took a more pragmatic view. “First you have to win the election, and these are arrangements that make the election viable,” she told Reuters. “Another thing will be politics after the election.” — Reuters

Obiena’s quest for historic first World Athletic medal continues

July 25, 2022 | 12:02 am

“JOB’S not finished.”

World No. 6 EJ Obiena hopes to finish what he has started as he resumes his quest for a historic first World Athletics Championships medal in today’s pole-vault finals in Eugene, Oregon in the United States.

The Asian record-holder and Southeast Asian Games gold medalist made it through the top 12 after clearing 5.75 meters in the qualification phase Saturday.

There, he would face the best the world could offer in the sport including the almighty Tokyo Olympic champion and world record-holder Armand Duplantis of Sweden.

Also posing a big threat are American and world No. 2 Christopher Nilsen and Brazilian Thiago Braz, the silver and bronze winners in last year’s Tokyo Games, respectively.

Others in the final cast are Germans Oleg Zernikel and Bo Kanda Lita Baehre, Belgian Ben Broeders, Turk Ersu Sasma, French Renaud Lavillenie, Norweigians Pal Haugen Lillefosse and Sondre Guttormsen, and Dutch Menno Vloon.

“After all of the things that have happened, from missing my supposed to be first World Indoor Championship earlier this year, to contracting COVID-19 a few weeks back, we are here,” said Mr. Obiena.

Mr. Obiena is eyeing to become the first Filipino to snare a medal in the biennial event.

If he could not, he’s hoping to at least surpass the Asian record of 5.93m he himself set in the Golden Roof Challenge in Innsbruck, Austria last year.

That would still be a feat in itself. — Joey Villar

Isuzu celebrates 25^th year, reveals ‘Road to Progress’ vision

July 25, 2022 | 12:02 am

VELO_image9 — Isuzu Philippines Corp. (IPC) President Noboru Murakami (second from left) leads a toast at the 25th anniversary celebration of the company. With him are (from left) IPC Executive Vice-President Shojiro Sakoda, House of Investment Senior Vice-President and Car Business Operations Head Johnny Fetalvero, and AC Motors Automobile Group President Antonio “Toti” Zara III. — PHOTO FROM ISUZU PHILIPPINES CORP.

ISUZU PHILIPPINES CORP. (IPC) marked its 25^th inaugural anniversary last week at the SMX Convention Center in Pasay City, where company officials also disclosed a new “Road To Progress” vision.

In a speech delivered to shareholders, dealers, suppliers, bank partners, members of the media, VIPs of the industry, and executives and employees, IPC President Noboru Murakami thanked everyone who contributed to the success of company. “The main reason why IPC has attained these countless achievements throughout the years is because we have the unwavering support of each and every one of you,” he said.

Isuzu Philippines also received congratulatory messages from Isuzu Motors Ltd. Executive Officer Koji Nakamura, Mitsubishi Corp. Division COO Kyoya Kondo, AC Motors Automobile Group President Antonio “Toti” Zara III, and House of Investment Senior Vice-President and Car Business Operations Head Johnny Fetalvero.

In the anniversary video shown during the program, former IPC employees from different divisions: Myrna Valle (Administration), Arnel Deunida (Manufacturing), Joseph Bautista (Sales & Marketing), Edward De Guzman (Aftersales), and Arthur Balmadrid (SVP), all of whom are pioneers, also shared their significant Isuzu experiences at the time IPC was just starting. The video conveyed that the values instilled by the pioneers are now serving as one of the pillars of foundation of the current employees in attaining new achievements in the years to come.

Apart from celebrating 25 years of success, IPC also shared the company’s plans on adhering to the sustainable development goals through a new vision, “Road to Progress,” which is going to be the underlying motive of business activities and goals moving forward.

According to the presentation of IPC President Murakami, the vision aims to realign IPC’s business process through a new perspective focusing on environment, social, and governance. One of the steps IPC takes in protecting the environment is shifting its energy source from coal power plants to renewable forms like solar energy to decrease the carbon emission of its manufacturing activities.

IPC is also encouraging its dealers to follow its lead in switching to renewable energy in the next years — envisioning a lower carbon footprint for the entire Isuzu dealer network.

For more information and updates, visit the firm’s official website at www.isuzuphil.com or follow www.facebook.com/IsuzuPhilippines.

Style (07/25/22)

July 25, 2022 | 12:02 am

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Havaianas gets Heart Evangelista to endorse sandals

FLIPFLOP brand Havaianas has tapped actress Heart Evangelista to endorse its Sandals collection. The sandals feature a colorful strap across the foot. They are available on havaianas.ph.

Le Pliage Re-play: colorful to the end of the roll

WHAT happens to stocks of canvas left over from previous collections? Surely, they shouldn’t go to waste? To utilize its end-of-the-roll materials as responsibly as possible, Longchamp has come up with a solution: the Le Pliage Re-Play. The line consists of three formats — a spacious vertical tote, a small shoulder bag, and an on-trend belt bag — each combining two different colors of end-of-the-roll nylon canvas with a third color of Russian leather trim. The line is a retrospective over the many seasons of Le Pliage’s constantly renewed color palette, while simultaneously making the best use of available resources. Le Pliage Re-Play comes in nine different color combinations, available in varying quantities in boutiques throughout the world. The line is — quite literally — a limited edition. Once the stocks of canvas and leather are exhausted, these bags can never be reproduced. Longchamp is exclusively available at Rustan’s Makati, Rustan’s Shangri-La, Rustan’s Cebu, Greenbelt 5 and Rustans.com.

New portal All Things Hair

UNILEVER’S All Things Hair is a content portal with very easy-to-follow hair how-to’s, hair hacks, hair care solutions, and even hair inspirations for Filipinos. Behind the site is a community of beauty editors, hair stylists, and experts united by their passion for hair and their understanding of people’s everyday hair matters. All Things Hair offers personalized tips that make hair care fun. There are over 800 articles really practical and easy to understand, with an extensive section on haircuts based on different hair lengths, hair types, and even face type. There’s also hairstyle articles, tips, and product recommendations. An extra-wide gallery of photos gives readers ideas about what they can do. For help and guidance in DIY, the At Home section has videos, how-to’s, and product recommendations for styling hair at home. There’s also a wide section catering to men, offering plenty of information on haircare and hairstyle goals for every kind of preference, plus product recommendations. The articles could be explored according to length, trends, and products for men. To top it all off, All Things Hair has a chatbot for hyper-personalized hair recommendations based on the reader’s unique hair type.

Philippines to host Asian Volleyball Cup for women

July 25, 2022 | 12:01 am

AFTER a successful staging of two legs of the Volleyball Nations League last May, the Philippines will host another major international event in the Asian Volleyball Confederation Cup for Women set Aug. 21 to 29 at the PhilSports Arena in Pasig City.

A total of 10 teams including an all-collegiate national squad are seeing action in the seventh edition of the nine-day tournament that was originally set two years ago but was canceled due to the coronavirus disease 2019 (COVID-19) pandemic.

“This is a strong tournament and our young players, who we vision as the future of Philippine volleyball, will get the needed exposure against the continent’s best teams,” said Philippine National Volleyball Federation president Ramon Suzara.

The country is bracketed in Pool A with reigning champion China, South Korea, Iran and Vietnam while Pool B is composed of 2018 runner-up Japan, Thailand, Kazakhstan, Chinese Taipai and Australia.

The preliminaries are set from Aug. 21 to 25 with the Philippines facing Vietnam on Aug. 21, China on Aug. 23, Iran on Aug. 24 and South Korea on Aug. 25, all scheduled at television prime time 7 p.m.

The top five teams from each pool will advance to the knockout quarterfinals set on Aug. 27 with the semifinals set for Aug. 28 and the qualification matches and final on Aug. 29.

China won five of the tournament’s six editions — Nakhon Ratchasima 2008, Taicang 2010, Shenzhen 2014, Vinh Phuc 2016 and Nakhon Ratchasima 2018.

Thailand broke the streak in Almaty 2012. — Joey Villar

Cautious trading seen ahead of Fed review, SONA

July 25, 2022 | 12:01 am

PHILIPPINE SHARES may move sideways this week on expectations of another aggressive rate hike from the US Federal Reserve and ahead of President Ferdinand “Bongbong” R. Marcos, Jr.’s first State of the Nation Address (SONA) on Monday.

The benchmark Philippine Stock Exchange index (PSEi) inched up by 7.22 points or 0.11% to close at 6,263.39 on Friday, while the broader all shares index declined by 0.80 point or 0.02% to 3,381.06.

Still, week on week, the PSEi jumped by 68.13 points or 1.1% from its close of 6,195.26 on July 15.

“[Last] week’s trades had an upward bias ahead of Fed meeting and more local earnings results [this] week. The PSEi ended with a modest gain of 68 points to 6,274,” online brokerage 2TradeAsia.com said in a report.

“The PSEi modestly ended higher [on Friday] … amid the recent gains in the US stock markets to new highs in nearly 1.5 months, after global crude oil prices eased to near three-month lows that could lead to further rollbacks in local fuel pump prices and help ease inflationary pressures,” Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in an e-mail.

For this week, 2TradeAsia.com said they expect volatile trading ahead of the US central bank’s July 26-27 review.

“[A] 75 bps (basis points) rate hike is practically set in stone, although 100 bps is not too far from imagination as inflation remains stubbornly high and is pushing the US to recession territory,” the online brokerage said.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message that as investors have already priced in a 75-bp hike at that meeting, “[a] policy tightening more aggressive than the aforementioned may cause downward pressure on the market.”

“[This] week, we expect the local market to start on cautious trading as investors await President Ferdinand Marcos, Jr.’s first State of the Nation Address for clues on the local economy’s direction,” Mr. Tantiangco added.

2TradeAsia.com said the market will also wait for more second-quarter results from listed firms.

“As our corporate notes suggest, overall results for the first half should print better year on year… Balance sheet strength will be a metric that will prove itself more critical in the coming quarters,” it said.

“As market sentiment continues to walk on eggshells, there is something to be said on how valuations have been favorable to the long-term investor now versus when the pandemic started, back when concerns were relatively graver,” the brokerage added.

2TradeAsia.com put the bellwether index’s immediate support at 6,000-6,100 range and resistance at 6,500.

Meanwhile, Philstocks Financial’s Mr. Tantiangco placed the PSEi’s immediate support at 6,100-6,150 and resistance at its 10-day exponential moving average of 6,274.17, while RCBC’s Mr. Ricafort sees the psychological support being at the 6,000 mark and resistance between 6,300 and 6,500. — Justine Irish D. Tabile

Rising interest rates seen to benefit Metrobank

July 25, 2022 | 12:01 am

By Ana Olivia A. Tirona, Researcher

INVESTORS placed their bets on financial companies like Metropolitan Bank & Trust Co. (Metrobank) amid a rising interest rate environment that could push profits higher this year.

Data from the Philippine Stock Exchange showed the Ty-led Metrobank trading P653.91 million worth of 14.14 million shares from July 18 to 22, making it the 10^th most actively traded issue last week.

It went up by 0.6% or 30 centavos to close at P46.70 apiece last Friday from P46.40 on Thursday. On a week-on-week basis, Metrobank dipped by 1.1% from its closing price of P47.20 per share on July 15.

Year to date, the bank’s share price was down by 13.5%.

Stocks in the financial sector, which includes Metrobank, performed “good” last week after Bangko ng Sentral ng Pilipinas (BSP) announced a surprise rate hike to battle inflationary pressures in the week before, Mercantile Securities Corp. Analyst Jeff Radley C. See said in an e-mail.

The financials subindex was flat week on week as it finished at 1,502.18 on Friday from 1,502.41 on July 15.

The BSP increased its key rate rates in an off-cycle meeting last July 14 by a record 75 basis points (bps) to 3.25%, bringing it back to March 2020 level. Rates on the overnight deposit and lending facilities were also hiked by 75 bps to 2.75% and 3.75%, respectively.

The central bank has made a total of 125 bps rate hikes so far this year.

BSP Governor Felipe M. Medalla has signaled he would not rule out another rate hike at its next policy meeting in August.

“Investors with [a] relatively higher appetite for risk considered certain plays in the Philippine banking sector, as a number of tailwinds — from better margins due to rising interest rates to new opportunities emerging from the ongoing push to go digital — are seen as a boon to the sector given higher fee-based income and savings growth,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a separate e-mail.

Mr. Arce said larger banks like Metrobank are “safer bets” and will likely benefit most in the rising interest rate environment as a large chunk of their deposits is unlikely to be repriced upwards in line with loans.

“Metrobank is one of the top picks as net interest margins expand and loan growth accelerates as the economy continues to recover amidst relaxed COVID-19 restrictions,” Mr. Arce added.

Furthermore, Mr. See said that Metrobank being recognized as “Best Bank in the Philippines” at the Euromoney Awards of Excellence 2022 may have been a “bonus” in terms of positive sentiment on the company.

Euromoney said the bank’s performance was commendable in the past year faced with uncertainty, as it still recorded “strong capital and asset quality.”

Euromoney also focuses on the following key metrics for a company to win the category: market capitalization, total revenues, pre-tax profit, net income, return on tangible common equity, return on assets, net interest margin, cost-to-income ratio, Basel III Tier 1 capital, market share of deposits, market share of loans, and loan-to-deposit, nonperforming loan (NPL) and NPL coverage ratios.

Likewise, Metrobank has expanded its partnership with remittance company Pera Hub to allow fund transfer services to its users.

The new service allows persons who intend to send cash to a Metrobank client to go through Pera Hub branches.

Bank transfers, with a transaction fee of P100, can range from P100 to P25,000. Recipients can withdraw the cash from a Metrobank automated teller machine or through over-the-counter processes.

Pera Hub is the retail network brand of PETNET, Inc., a transaction network with over 3,000 locations nationwide. Aside from remittance, Pera Hub offers products and services such as money changing, payment transactions and micro-insurance, among others.

Mr. See said investors are anticipating a “good” second-quarter earnings report.

Meanwhile, Mr. Arce estimated the bank to reach P8.3 billion in net income in the second quarter and to finish the year at P28.4 billion.

The Ty-led bank was the third largest lender in the country in terms of total assets in the first quarter, central bank data showed.

Metrobank’s net income increased by 3.4% year on year to P8.104 billion in the first quarter. Its net income attributable to equity holders of the parent company likewise edged up by 2.6% to P7.986 billion.

Mr. See expects the bank’s support level to sit at P44.60 and resistance at P47.50 this week, while Mr. Arce placed its support at a range of P46.00 to P45.60 and resistance between P48.00 and P50.00.

Peso may move sideways ahead of Fed policy meeting

July 25, 2022 | 12:01 am

THE PESO is seen to get support from the Bangko Sentral ng Pilipinas’ preemptive hike ahead of the US Federal Reserve’s policy meeting this week. — BW FILE PHOTO

THE PESO is expected to move sideways against the dollar this week, with a preemptive move by the central bank this month seen to give the currency support ahead of another aggressive rate hike from the US Federal Reserve.

The local unit closed at P56.28 per dollar on Friday, rising by seven centavos from its P56.35 finish on Thursday.

The peso also appreciated by eight centavos from its P56.36-a-dollar finish on July 15.

The local currency opened Friday’s session at P56.35 against the dollar. Its weakest showing was at P56.39, while its intraday best was at P56.27 versus the greenback.

Dollars exchanged went up to $789 million on Friday from $647.45 million on Thursday.

The peso strengthened versus the dollar on Friday following the downward correction of the dollar against major global currencies amid recession risks as well as the European Central Bank’s (ECB) bigger-than-expected rate hike, Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in a Viber message.

The ECB on Thursday raised its benchmark deposit rate by 50 bps to 0%, its first rate increase in 11 years and a departure from eight years of negative interest rates, to rein in runaway inflation. It also raised its main refinancing rate to 0.50% and signaled more hikes.

The dollar lost ground on the heels of the business activity data, as investors weighed slowing economic activity against easing inflation, Reuters reported.

The dollar index fell by 0.047%, with the euro down by 0.18% to $1.021.

For this week, Mr. Ricafort said the Bangko Sentral ng Pilipinas’ (BSP) surprise 75-basis-point (bp) rate hike on July 14 could lend support to the peso ahead of the Fed’s July 26-27 meeting, where it is expected to continue raising borrowing costs aggressively.

“The surprise +0.75 local policy rate hike to 3.25% effective July 14, 2022 is meant to support or at least stabilize the peso exchange rate, as part of the toolkit related to the exchange rate vis-a-vis the inflation-targeting framework since 2002 and the price stability mandate,” Mr. Ricafort said.

“This is a preemptive move on a possible large Fed rate hike of 0.75-1.00 to 2.50%-2.75% (upper range of the Fed target) in the next Fed rate-setting meeting, which would make the interest rate differential in favor of the US dollar … after US CPI (consumer price index) again posted a new 40-year high of 9.1% that could require more aggressive Fed rate hikes/monetary tightening to bring down elevated inflation,” he added.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion likewise said the BSP’s off-cycle hike, as well as lower oil prices, could prop up the peso against the dollar.

US crude settled down by 1.71% at $94.70 per barrel last week and Brent ended at $103.20, down by 0.64% on the day, Reuters reported.

Mr. Asuncion said the Fed’s review, where it is expected to raise rates by at least another 75 bps, will be the main driver of foreign exchange trading this week, as well as month-end corporate demand for the dollar.

He gave a forecast range of P56 to P56.60 per dollar for this week, while Mr. Ricafort expects the peso to move from a narrower band of P56 to P56.40. — D.G.C. Robles with Reuters