Tokyo Olympic boxing medalists target 2024 Paris Games

December 6, 2021 | 12:01 am

By Joey Villar

OLYMPIC boxing medalists Nesthy A. Petecio, Carlo Paalam and Eumir Felix D. Marcial are not discounting the possibility of going for another shot at an Olympic gold in the 2024 Paris Games.

“Pinapangarap ko talaga gold medal sa Olympics (I’m really dreaming of an Olympic gold medal),” said Mr. Paalam during yesterday’s turnover ceremony of the house and lot he, Ms. Petecio and Mr. Marcial received in Tagaytay City.

The house and lot, a 125-square-meter property courtesy of Philippine Olympic Committee (POC) President Abraham Tolentino and his brother Sen. Francis Tolentino, was rewarded to Ms. Petecio, Messrs. Paalam and Marcial for bringing home a silver, silver and bronze, respectively, in the Tokyo meet.

Weightlifter Hidilyn F. Diaz, who delivered the country’s first Olympic mint, was given a 220-square-meter property nearby also from the Messrs. Tolentinos.

And of the three, Mr. Paalam appeared to have the best shot at shooting for the gold in Paris as he is the youngest at 23 years old.

Mr. Marcial is 26 while Ms. Petecio is 29.

Mr. Marcial, who will juggle being a pro, an amateur boxer and an Air Force man, said he still have something left in the tank.

“Kaya pa (I can still do it),” said Mr. Marcial.

Mr. Tolentino said had encouraged the three, as well as Ms. Diaz, to go at it one final time.

“I think they can still do qualify in the Olympics and they’re still young enough to shoot for the Olympic gold,” said the congressman from Tagaytay and PhilCycling chief.

Mr. Tolentino said he dreams of giving future Filipino athletes a home if they will end up snaring Olympic medals.

“I will call it the Olympic Village,” said Mr. Tolentino.

Yields on gov’t debt mixed on RTB sale, variant fears

December 6, 2021 | 12:01 am

YIELDS ON government securities (GS) ended mixed last week after strong demand for the retail Treasury bond (RTB) offering and concerns over the new coronavirus disease variant.

Bond yields, which move opposite to prices, rose by an average of 2.32 basis points (bps) week on week, based on PHP Bloomberg Valuation Service Reference Rates as of Dec. 3 published on the Philippine Dealing System’s website.

The short end of the curve saw rates decline from their close on Nov. 26 except for the six-month Treasury bill (T-bill), which inched up by 0.12 bp to fetch 1.4583%. On the other hand, yields on the 91- and 364-day papers went down by 1.49 bps and 3.67 bps to 1.2229% and 1.6596%, respectively.

At the belly of the curve, the two-, three-, four-, five, and seven-year Treasury bonds (T-bonds) increased by 1.53 bps, 6.25 bps, 10.18 bps, 10.97 bps, and 1.26 bps to yield 2.7825%, 3.3275%, 3.8005%, 4.1648%, and 4.5427%, respectively.

Meanwhile, long-dated papers were mixed as yields on the 20-year and 25-year notes went up by 0.46 bps (to 5.0233%) and 0.97 bps (5.0108%), while the rate of the 10-year paper dipped by 1.07 bps (4.9874%).

Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said local yields were slightly higher last week following the P360-billion retail Treasury bond issuance of the government.

“The market continues to price in the substantial increase in government debt and its impact on the country’s credit ratings,” Mr. Neri said in an e-mail interview.

ING Bank N.V. Manila Branch Senior Economist Nicholas Antonio T. Mapa noted that GS yields rose higher, particularly in the belly of the curve, as “the anticipated trading of the RTB took center-stage…which may have affected trading sentiment with some investors taking profit.”

“Meanwhile, concerns over the potential negative impact from the Omicron variant may have given the market additional trading color,” Mr. Mapa said in a separate e-mail interview.

The Bureau of the Treasury (BTr) last week said the government raised P360 billion through its offering of five-and-half-year RTBs, which was launched on Nov. 16 and ran until Nov. 26.

Broken down, the BTr secured P330.5 billion in fresh funding, while P29.5 billion came from the bond exchange program. The retail bonds carry a coupon rate of 4.625% due 2027 and were issued on Thursday.

These retail bonds are offered to small investors that want low-risk, higher-yielding instruments for as low as P5,000.

Meanwhile, the Philippines is ramping up its vaccination program as the threat of the latest variant of the coronavirus disease, which was first detected in South Africa, looms.

The Omicron variant has yet to be detected in the country but has closed its borders to South African countries as well as other Asian and European countries where such cases have been recorded.

Analysts said the release of November inflation data and the auction of reissued 10-year T-bonds, which have a remaining life of nine years and seven months, on Tuesday will drive yield movements this week.

The Bangko Sentral ng Pilipinas expects November inflation to settle between 3.3% and 4.1%, slower than the 4.6% clip in October, amid a stronger peso and oil price rollbacks.

A low inflation figure will help push renewed bond buying, Security Bank Corp. Chief Investment Officer for Trust and Asset Management Group Noel S. Reyes said.

“We could have a positive December movement from potential window dressing and relatively lower issuance for the month by the Bureau of the Treasury. The curve could flatten favoring long dates similar to US Treasuries,” he added in an e-mail. — Abigail Marie P. Yraola

New COVID variant drags URC stocks

December 6, 2021 | 12:01 am

UNIVERSAL Robina Corp. (URC) saw its stock price go down on a week-on-week basis as negative market sentiment brought by the emergence of a potentially more contagious coronavirus disease 2019 (COVID-19) variant offset any gains made from the acquisition of a Malaysian snack firm.

URC’s stock price settled at P130 per share to end the trading week last Friday, down 1.7% from its stock price of P132.2 per share last Nov. 25, Philippine Stock Exchange (PSE) data showed.

A total of 12.23 million shares worth P1.6 billion were traded from the week of Nov. 29 to Dec. 3.

Trading of URC shares were suspended on Nov. 26 in accordance with the PSE’s “Substantial Acquisition” rule following the firm’s recent acquisition of a Malaysian-based firm. Meanwhile, last week only had four trading days as the market was closed last Tuesday in observance of Bonifacio Day.

For the year, the company’s share price has gone down by 14.6%.

“Market reacted positively on the acquisition with price moving up and volume at more than three times the normal trade upon resumption of trading after the disclosure [of URC’s latest acquisition overseas]. Unfortunately, it was affected by the negative sentiment in the market when the uncertainty of the Omicron variant sets in,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a Viber message.

In a disclosure to the stock exchange on Nov. 26, URC said it agreed to buy a 100% stake in Malaysian biscuits company Munchy Food Industries and its subsidiary from private equity firm CVC Capital Partners for around 1.925 billion ringgit (around P22.9 billion).

Munchy’s is described as the top biscuit brand in Malaysia. Among its products include Munchy’s Cream Crackers, Choc-O cookies, and Lexus Cream Sandwich, which are available in over 50 countries.

On the other hand, the emergence of the Omicron variant led the government to approve a plan to keep Manila, nearby cities, and all provinces under Alert Level 2, except Apayao, which is now under Alert Level 3.

The government announced the quarantine levels, which run on Dec. 1 to 15, after it tightened border controls to prevent an outbreak of the Omicron variant, which authorities said has had several mutations.

The country has also suspended inbound flights from several countries from South Africa, Botswana, Namibia, Zimbabwe, Lesotho, Eswatini and Mozambique, Austria, the Czech Republic, Hungary, the Netherlands, Switzerland, Belgium, and Italy.

“Investors were focused on the effects of the Omicron variant to the global economy, which sparked volatility in the market. Nonetheless, [URC’s acquisition of the market-leading snack manufacturer in Malaysia]… would add value to URC’s operations given the potential revenue and cost synergies between the two companies,” said RCBC Securities, Inc. Equity Research Analyst John Renz S. Alvarado in an e-mail.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan shared this assessment.

“The recent acquisition would add value to URC’s global presence, particularly scale up their manufacturing capabilities and market position in the region given that Munchy’s is a well-loved biscuit brand in Malaysia,” Mr. Limlingan said in a separate e-mail.

URC posted a P2.47-billion net income attributable in the third quarter this year, up 25% from a year ago as sales inched up by nearly 3%. Year to date, its attributable net income went up by 40% to P10.52 billion from P7.50 billion in last year’s comparable nine months.

“Though URC’s income was affected by the stricter restrictions during the third quarter of this year, we may expect a yet better performance from the company going into the fourth quarter. with the ease in restrictions,” Diversified Securities’s Mr. Pangan said.

“Estimated income may reach P4 billion for the fourth quarter. while annual income may reach P14.5 billion, better than its annual income at pre-pandemic level,” he added.

For RCBC Securities’s Mr. Alvarado: “We expect demand to pick up in Q4 due to holiday spending, in addition to increased consumer mobility due to declining COVID-19 cases. However, we expect commodity costs to remain elevated,” he said.

“Nevertheless, URC’s earnings performance will depend on how they manage their inventory in an inflationary environment.”

In another separate e-mail, RCBC Securities equities trader Rachele Y. Lee said the stock may continue to trade in the P128-P134 range until a breach is made, in which case, it will lead to P125 and P137 as the next support and resistance levels, respectively.

Regina Capital’s Mr. Limlingan expects “modest growth” amid recovering consumer confidence along with the upcoming holiday season.

Mr. Limlingan pegged URC’s immediate support at P128 per share and resistance at P134 per share.

“We see URC going sideways in the coming week as there’s little to no momentum,” he said.

Meanwhile, Diversified Securities’s Mr. Pangan placed URC’s immediate support and resistance levels at P128 per share and P132 per share, respectively. — Bernadette Therese M. Gadon

Leisure & Resorts World Corporation to conduct virtual stockholders’ meeting on Jan. 7, 2022

December 6, 2021 | 12:00 am

Big banks’ asset growth picks up pace as loans recover

December 6, 2021 | 12:00 am

THE THIRD QUARTER saw the country’s biggest banks post the fastest asset growth since the start of the coronavirus pandemic, while aggregate loans rose for the first time in a year. Read the full story.

Analysts’ November 2021 inflation rate estimates

December 6, 2021 | 12:00 am

HEADLINE INFLATION likely eased in November amid a slower rise in food prices and a drop in pump prices, analysts said. Read the full story.

How PSEi member stocks performed — December 3, 2021

December 6, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Friday, December 3, 2021.

Banks expect to keep lending to coal-fired power projects

December 5, 2021 | 11:30 pm

Banks expect to continue lending to coal-fired power projects as the Philippines shifts to cleaner and renewable energy sources by 2040, pending developments in an Asian Development Bank (ADB) program funding the energy transition, a senior banker said.

“There’s a current initiative from the (ADB) for the energy transition. That’s something that the banks haven’t really appreciated yet, but we will talk to the ADB,” BDO Capital & Investment Corp. President Eduardo V. Francisco said during the Energy investment Forum Friday.

“We want any way for the transition of coal to happen smoothly also, so there will be no stranded assets for the original coal investors,” Mr. Francisco said.

He also said that if the Department of Energy (DoE) allows nuclear energy, BDO Capital & Investment is willing to explore financing whatever companies decide to venture into nuclear.

During the United Nations Climate Change Conference (COP26) in November, Finance Secretary Carlos G. Dominguez III, head of the Philippine delegation, said the country has partnered with the ADB to establish the Energy Transition Mechanism (ETM) in the Philippines.

ETM is ADB’s initiative to “shorten the life of coal-fired power plants and unlock new investments in sustainable and renewable energy.”

Through partnerships, public and private investment will support and finance country-specific ETM funds to retire coal-fired power plants earlier than scheduled.

“In parallel, proceeds from the assets or other investments will be mobilized onward renewable energy plants and enabling infrastructure such as grids and storage to provide clean energy,” the ADB said on its website.

In Oct. 2020, the DoE announced a moratorium on new coal-fired power plant projects.

Prior to the suspension, there were 3,436 megawatts (MW) worth of approved coal-fired power plants in Luzon including projects from Meralco Powergen Corp. and GNPower Dinginin Ltd. Co.

The equivalent capacities are 135 MW and 420 MW for the Visayas and Mindanao, respectively.

To hit its target of 50% renewable energy (RE) capacity outlined in the Philippine Energy Plan by 2040, Energy Undersecretary Felix William B. Fuentebella said in his presentation during the forum on Friday that the Philippines needs an additional 92,320 MW of installed capacity by 2040 under what it calls the Clean Energy Scenario (CES). — Marielle C. Lucenio

CoA tallies over 900,000 employers not compliant with SSS remittance rules

December 5, 2021 | 11:30 pm

GOVERNMENT AUDITORS said that 926,899 employers were not compliant with the rules for remitting their employees’ premium contributions to the Social Security System (SSS), depriving the agency of funds to deliver its services.

In its 2020 annual report, the Commission on Audit (CoA) found that P321.53 billion has yet to be paid by these employers to the SSS, including penalties and damages.

“Inability to collect promptly the unremitted premium contributions, corresponding penalties and damages from delinquent employers may result in losses of SSS funds which could have been invested to earn income for the benefits of the members and beneficiaries,” CoA said.

The failure to remit comes in spite of an SSS Accounts Management System which seeks to monitor collection of contributions and the Condonation Penalty Contribution Program (CPCP) put in place in 2019.

Only 55,750 of the 112,043 employers assessed as delinquent availed of the CPCP duringits six-month run.

Delinquent accounts under the jurisdiction of the agency’s Branch Operations Sector (BOS) and Large Accounts Division totaled 916,626 employers, which is 97.86% higher than the 2019 tally.

Unpaid contributions by these employers increased by 69.89% from 2019 to P316.35 billion.

The BOS also reported to auditors that out of 947,234 employers registered with it, 916,229 or 96.73% have outstanding payments of P315.23 billion, including principal and penalties.

“A significant portion of 671,841 or 73.33 percent of the total delinquent ERs (employers) with a total delinquency amount of P300.692 billion have (unsettled arrears) for more than five years,” CoA reported.

The BOS also reported that of the non-compliant employers, 36,248 were sent billing letters while 1,427 were referred to the Legal and Enforcement Group (LEG).

Auditors proposed a review of the Account Management System and implement stricter guidelines, fast track approval of procedures on the handling of non-compliant accounts, and consider another condonation program for those that failed to avail of the previous program and offer it for longer.

SSS management replied that the Manual of Procedures (MOP) order on the handling of delinquent employers is undergoing evaluation by the Management Support Services Division, with approval and implementation targeted before the end of the year. — Russell Louis C. Ku

GSIS deemed stable despite AFP pension risk

December 5, 2021 | 11:30 pm

The Government Service Insurance System (GSIS) remains stable despite risks posed by military pension liabilities, Finance Secretary Carlos G. Dominguez, III said.

“The GSIS is not in any danger of not floating,” Mr. Dominguez said in a Viber message to reporters.

“As chief financial officer of the government, it is my duty to clearly define the financial issues facing the country, and one sure way of doing that is to make certain that all our liabilities including contingent ones, are recognized and understood by all so they can be rationally addressed by this and future administrations,” he added.

The inability to reform the military and uniformed personnel pension scheme has been flagged as a key fiscal risk for 2022 and the next administration, according to a report released by the Development Budget Coordination Committee (DBCC) Friday.

It cited pending measures including Senate Bill 1419, which seeks to further boost current retirement benefits and pensions for military and uniformed personnel.

“Said contribution rates vary across bills but generally range from 18% to 27% of the monthly base pay of the military and uniformed personnel, which is exorbitantly high when compared to the civilian rate of 12% of the monthly basic salary,” the DBCC said.

“This will result in the ballooning of retirement and pension requirements over the next few years, without the correlative funding sources to support them,” the report added.

A previous study by the GSIS showed that the government needs to allot P9.6 trillion to keep the pension system afloat without reforms.

An actuarial study by the Department of Finance concluded that the creation of a retirement fund solely for military and uniformed personnel will require an additional P45 billion annually.

Instead of following through on a recommendation for a separate authority that will oversee such retirement funds, the DBCC backed the GSIS as fund administrator, “given its actuarial, investment, and fund management expertise and experience,” the DBCC said.

“It is also prudent to have it be managed by the GSIS so that administration of the retirement and pension systems are holistic and overseen by one central agency,” it added. — Luz Wendy T. Noble

Japan invited to invest in EVs, other sustainable sectors

December 5, 2021 | 11:29 pm

THE Department of Trade and Industry (DTI) said it is inviting Japanese companies to invest in the Philippine electric vehicle (EV) industry and sustainable industries.

Trade Secretary Ramon M. Lopez said the Philippines is positioning itself as a regional manufacturing hub for EVs and EV parts in the Association of Southeast Asian Nations (ASEAN).

“We recognize that the future of transportation will be autonomous, connected, electric, and shared,” Mr. Lopez said during the recent virtual Philippine Economic Briefing organized by the Philippine Embassy in Tokyo, the ASEAN Japan Centre, and the DTI.

“The country’s EV ecosystem is composed of 54 manufacturers and importers, including Japanese parts manufacturers and dealers like Mitsubishi, Toyota Tsusho, Hitachi Metals, and Yazaki,” he added.

Mr. Lopez said Japanesecompanies should help develop green metals such as nickel, copper, and cobalt.

“Around 9 million hectares or 30% of the country’s total land area has mineral potential, and there is opportunity to develop and responsibly utilize untapped vast mineral resources that could be used for downstream industries, such as EV battery manufacturing and support wiring harness production,” Mr. Lopez said.

“The Philippines is one of the world’s richly endowed countries in terms of mineral resources,” he added.

Mr. Lopez said prospective and current Japanese investors can also venture into other businesses such as electronics and semiconductors, medical devices, automotive, aerospace, agribusiness, and construction.

According to the DTI, Japan was the Philippines’ second-largest trading partner, third-largest export market, and second-largest source of imports in the nine months to September.

“Total trade between the two countries has significantly improved by 20% amounting to $16.14 billion or 1.84 trillion yen as compared to the same period in 2020,” the DTI said.

It added that Japan is among the Philippines’ top five sources of investment pledges.

“For the first semester of 2021, Japan ranked as the second-largest source of investment promotion agencies (IPA)-approved investments with commitments amounting to $235.8 million or 27.15 billion yen, a significant 563% increase from approved investments during the same period in 2020,” the DTI said. — Revin Mikhael D. Ochave

GOCC subsidies decline 17.5% in Oct.

December 5, 2021 | 11:26 pm

GOVERNMENT corporations took in less budgetary support in October compared to a year earlier, with the biggest allocations granted to the National Irrigation Administration (NIA), the National Housing Authority (NHA), and the Philippine Fisheries Development Authority (PFDA), according to the Bureau of the Treasury (BTr).

Preliminary data from the BTr indicate that subsidies to government-owned and controlled corporations (GOCCs) dropped 17.5% year-on-year to P5.206 billion.

They also fell 43% from the September total of 9.16 billion.

The NIA remained the biggest recipient of subsidies, taking in P2.402 billion, up 9.3% from a month earlier but down 43% year-on-year. The agency’s subsidy accounted for nearly half or 46.13% of the total during the month.

The National Housing Authority received P1.098 billion, much higher than the P252 million received in Oct. 2020 but lower than the P3.059 billion in September.

The Philippine Fisheries Development Authority received P319 million in October, up sharply from the P32 million in September. The agency received no budgetary support in Oct. 2020.

The National Home Mortgage Finance Corp. (P172 million), Civil Aviation Authority of the Philippines (P100 million), National Kidney Transplant Institute (P107 million), Philippine Heart Center (P147 million), and the Philippine Postal Corp. (P135 million) all received subsidies exceeding P100 million.

Government corporations receiving more than P50 million were the Light Rail Transport Authority (P85 million); Philippine National Railways (P82 million); Development Academy of the Philippines (P68 million), IBC-13 (P84 million), and the Philippine Children’s Medical Center (P87 million).

Agencies that received no subsidies in October were the Local Water Utilities Administration, National Electrification Administration, National Food Authority, National Power Corp., Cagayan Economic Zone Authority, Philippine Crop Insurance Corp., Philippine Health Insurance Corp. (PhilHealth), Small Business Corp., and the Tourism Infrastructure and Enterprise Zone Authority.

Government subsidies in the first 10 months of 2021 amounted to P151.081 billion, down 8.5% from a year earlier.

PhilHealth received the biggest subsidy during the 10 months of P76.063 billion.

Subsidies are granted to GOCCs to cover operational expenses not supported by their revenue. — Luz Wendy T. Noble