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Mini Countryman: Maximum Mini

The latest generation of the Mini Countryman goes even further in versatility, agility, and luxury. — PHOTO BY MANNY N. DE LOS REYES

All-road fun and versatility with the UK brand’s biggest vehicle

MINI COOPER purists may decry an “upsized” Mini, but you can’t deny the wisdom of meeting global demand for vehicles that “cross over” from their iconic roots. Case in point: The Porsche Cayenne. Purists cried heresy when Stuttgart announced its first-ever SUV — which quickly rocketed the company’s monthly sales from the tens of thousands to hundreds of thousands and made it one of the most profitable car brands in the world. Today we have SUVs from Lamborghini, Rolls-Royce, and Bentley.

But how good is the Mini Countryman, and how does it blend traditional and much-loved “small car” Mini attributes with the new set of brand values expected of a modern crossover or SUV? The Countryman crossed over to new genres when it was first launched in 2010. It was the first Mini with four doors, a large tailgate, five seats and optional all-wheel drive. Global reception to the game-changing, segment-redefining big new Mini was such that more than half-a-million Mini Countrymans have been sold worldwide.

The latest generation of the Mini Countryman goes even further in versatility, agility, and luxury. Its delightful go-anywhere spirit is abetted by a higher ground clearance, short front and rear overhangs, and raised seating positions — further reinforced by rugged cues like functional roof rails and the de rigueur black protective moldings on the fenders. A substantial eight inches longer than its predecessor, the Mini Countryman is the biggest, roomiest, and most versatile model in the brand’s 62-year history.

It boasts cool features like a touchscreen infotainment system for the signature huge 8.8-inch circular display in the center of the dash, an electric tailgate with foot motion-operated opening and closing, beautiful customizable cabin ambient lighting, and even a cool Mini Picnic Bench — a fold-out sill cushion that doubles as a comfortable seat for two on the luggage compartment lid. The picnic bench even has a flap that keeps your clothes from getting muddied after driving through dirt trails. Tailgate parties have never been as cool and comfortable as this.

Compared to its predecessor, the latest Countryman is 30mm wider and its wheelbase has been extended by 75mm. This growth makes the Countryman a true five-seater with a significantly bigger cargo space. Particularly genius is the design of the rear seats. The seatback splits 40/20/40 while the bottom cushion, which can be moved forward and backward up to 13cm, is split 60/40. The luggage compartment volume is 450 liters and can be expanded to a total of 1,390 liters with the rear seats folded.

Numerous design elements such as the floating-effect white roof, the upright rear lights, the honeycomb radiator grille and the large, expressive headlamps have kept the Mini as fresh and characterful as ever. The signal light surrounds on the front fenders exhibit an arrow shape that adds visual dynamism when you look at the car from the side. Horizontal lines dominate at the rear, emphasized by dual exhaust pipes positioned at either end of the sports car-inspired under-bumper diffuser and the bold C-O-U-N-T-R-Y-M-A-N lettering on the tailgate, with the vertical taillights providing an appealing contrast.

The distinctive, slightly asymmetrical profile of the headlamps deviates from the circular shape that is otherwise typical of the brand. Striking LED daytime driving lights run entirely around each headlamp, which makes the Countryman that much more head-turning in the daytime.

Despite the high window line, the narrow pillars and high seating position make for terrific outward visibility. The rear doors have been enlarged compared to the predecessor for easier ingress and egress. This is truly the first Mini that is fully capable of functioning as a vehicle for one-car families. And because the joy of spirited driving is further enhanced by music, the car comes with a superb Harman Kardon audio system.

The Mini Cooper S Countryman is powered by a 2.0-liter four-cylinder petrol engine (mated to an eight-speed Sport automatic) developing 192hp at 5,000 to 6,000rpm and 280Nm of torque from as low as 1,350rpm all the way to 4,600rpm. It can accelerate from zero to 100 kph in just 7.5 seconds and reach a 225kph top speed. More importantly (and despite it being bigger and heavier than all previous Minis), the Countryman lives up to the legendary Mini agility and maneuverability.

The superbly balanced suspension (responsive handling without the usual sports car stiffness or harshness) of the Countryman combines the tried-and-tested single-joint spring/strut at the front and a multilink rear design optimized for light weight and high rigidity. Eighteen-inch alloy wheels come standard, 19-inch wheels as options.

State-of-the-art Dynamic Damper Control is also available for the Countryman. Two program maps can be activated for the electronically controlled dampers via the optional Mini Driving Modes. A rotary switch at the base of the gear lever lets the driver select between Mid, Sport, and Green modes. This adjusts the car’s responsiveness to the driver’s motions on the accelerator pedal and steering wheel, the quickness of the gearshifts, the operating mode of electrically powered comfort features and even the engine sound. The difference is stunning, with the car seeming very excited to rocket forward and attack corners and apexes in Sport mode but feeling very relaxed in Green.

The standard Collision Warning with City Braking function can be extended to include the Driving Assistant system with camera-based Active Cruise Control, Pedestrian Warning with Initial Brake function, High Beam Assistant and Road Sign Detection. Park Distance Control, Rear View Camera, Parking Assistant and Head-Up Display are also optionally available.

The Mini Cooper S Countryman starts at P3.25 million for the Pure variant, goes up to P3.85 million for the Sport, and tops out at P4.75 million for the flagship Mini John Cooper Works Countryman.

All things considered, the Mini Countryman has the perfect combination of exclusivity, advanced technology, universally admired design, world-class high performance, and a versatile cabin to take on even the finest luxury European crossovers. Of course, nothing can be more convincing than an actual drive of the brilliantly capable Mini Countryman. It’s an experience every car-loving person owes him- or herself.

India’s palm campaign has hard row to hoe with water, seedlings scarce

REUTERS

DWARAKA TIRUMALA, India — Tractor convoys trundled thousands of oil palm seedlings to new homes on farms across southeastern India this month, as the world’s top importer of edible oil rolls out an ambitious $1.5-billion plan to boost output.

Record prices of palm, and new government promises of payouts even if Indian prices slump, are driving the effort, which aims to lift domestic output sharply within a decade from a tiny level now.

“The return on oil palm will at least be double that of rice and banana, and it is far less labor-intensive,” said B. Brahmaiah, one of the hundreds of farmers nationwide who are racing to switch from the usual staple crops, such as rice.

Brahmaiah, 37, owns a six-acre (2.4-hectare) plot in the West Godavari district of Andhra Pradesh state, where fertile soil, ample water and oil processing mills promise to be a strong driver of higher production.

Nestling amid verdant rice fields are forest-like clumps of oil palm, coconut, and cocoa plantations, watered by plentiful supplies from the region’s rivers and canals.

Elsewhere, though, regular watering is just one of many obstacles to achieving a target of a 10-fold output expansion within a decade, ranging from a shortage of seedlings to a four-year growing term before palm trees produce fruit.

A national Mission on Edible Oils launched last month aims to boost output to 2.8 million tons by nearly tripling the crop cultivation area to 1 million hectares (2.4 million acres), so as to curb oil imports, which exceeded $11 billion last year.

Ravi Mathur, who heads the Indian Institute of Oil Palm Research, the government-backed body driving the campaign, said it had identified 2.8 million hectares (7 million acres) suitable for palm cultivation.

Apart from Andhra Pradesh, these areas include the mountainous northeast and the remote islands of Andaman and Nicobar, where a price premium of 2% is on offer to farmers so as to match rates for produce in less isolated areas.

Green groups have criticized the push, saying it could lead to water scarcity, reduce forest cover, and hit biodiversity, but Mathur dismissed these fears as unfounded, saying authorities would protect the environment from harm.

Still, planting all 2.8 million hectares (7 million acres) with palm will be a major task, as the thirsty plants need regular, profuse supplies of water, a scarce commodity in India, where agriculture relies on annual monsoon rains.

Another barrier to the switch is that oil palm requires up to four years to yield sellable fruit, unlike rice, cotton or pulses, which can be harvested in less than six months.

That constricts income flows for farmers, said Sougata Niyogi, a top official at India’s biggest palm oil producer, Godrej Agrovet Limited.

The government plans to make up some of the cost by offering 29,000 rupees ($394) for each hectare of new palm cultivation, and help with planting other quicker-growing crops on farms.

It will also guarantee a viability price for fresh fruit bunches, paying the difference if market rates fall below that level.

That assurance should hasten oil palm plantings, said B.V. Mehta, executive director of trade body Solvent Extractors’ Association of India, as price volatility was previously a major deterrent for growers.

YEARS BEFORE INCOME FLOWS
Even with such assistance, few small, cash-starved farmers will be able to wait years for income to come in, Godrej’s Niyogi said.

Farmer O. S. Chalapatha, who planted oil palm on a 35-acre (14-hectare) plot more than a decade ago, said his earnings from a job with a private firm initially helped defray costs.

“In the first few years, a huge amount was required to develop oil palm plantation,” he told Reuters.

“I managed to arrange it, since I was employed in a private company. But it is not possible for everyone.”

Also shaping as a critical threat is a shortage of palm seedlings.

Palm nurseries in India and southeast Asia, which normally need up to a year to expand production, have been overwhelmed by the surge in seedling demand for the drive.

To reach its target of 1 million hectares under oil palm by 2025/26, India must add 130,000 hectares (321,000 acres) every year, calling for millions of seedlings.

“India needs 18.6 million seedlings, but local supplies are limited to 1 million,” said an industry official in the financial capital of Mumbai, who sought anonymity.

“For the rest, we are dependent on imports.”

Godrej plans to import 1.15 million sprouts this year, up from 450,000 last year, to meet farmers’ demand, Niyogi added.

The shortfall leaves first-time producers unable to start planting.

“We are willing to pay three times more than government-set prices, but we are not able to secure seedlings,” said another Andhra Pradesh farmer, T Malddiramaiah.

A longer term challenge for India is setting up oil mills to press the fruit once it is ready, so as to avoid spoiling. 

Such infrastructure is scarce in the northeast, where congested roads and limited supplies of fertilizer already strain supply chains.

That leaves just a few pockets of producers, such as those in Andhra Pradesh, to rise to the challenge, which suggests a dent in huge imports is unlikely.

For all its efforts, India may not be able to produce more than 2 million tons of palm oil by 2029/30, when demand is expected to have risen another 5 million tons, said a leading edible oil refiner.

“India will remain import-dependent in the foreseeable future,” said the refiner, who asked not to be identified. “Oil palm and other programs can only reduce some incremental growth in imports.”

But on his farm in Andhra Pradesh, Brahmaiah has his eyes firmly fixed on the prize.

“Oil palm is more profitable than other crops once it starts yielding,” he said. — Reuters

Looking sharp

SINGAPOREAN brand Pedro, a member of the Charles & Keith Group, has released a sharp new line for both men and women.

While Pedro began as a men’s footwear brand in 2006, it would release a line for women in 2008. According to its website, the brand now operates about 100 stores in the Asia Pacific region. The Suyen Corp., under chair Ben Chan (of local brand Bench) distributes Charles & Keith, as well as Pedro, in the Philippines.

The new line is crafted from cow leather, and headlining it is a boxy bag reminiscent of subdued Italian styles, adding its own flair with biker chains and straps. Pointed-toe kitten heel slingbacks along with the Pedro logo trot ahead for the women’s shoe line, while stylized chains decorate the vamps of loafers and moccasins.

The collection campaign is fronted by Nicole Wong and Glenn Goh. Nicole Wong is the creative director of the content agency, NPLUSC, known for her progressive digital projects. Glenn Goh, is a veteran stylist in Singapore. —  JLG

Biofuels industry seen to need tweaking for maximum potential

VECTORPOUCH-FREEPIK

By Revin Mikhael D. Ochave, Reporter

THE COUNTRY’s biofuels industry still needs fine-tuning to achieve its full potential amid issues on pricing and supply, experts and participants in the sector said.

Rex B. Demafelis, who chairs the University of the Philippines-Los Baños’ (UPLB) Interdisciplinary Biofuels Research Study Center, said the change in the coconut methyl ester (CME) blend of diesel from 2% (B2) to 5% (B5) should have been done a long time ago since the country has enough capacity in terms of feedstocks. 

However, Mr. Demafelis noted of the price increase seen with the increase in blend, which he said can be addressed if there are changes made in the value chain.

“If we could have a direct purchasing agreement between farmers’ cooperatives and the mill or farmers’ cooperatives and the biodiesel plant, it will ‘cut’ the traders. It will have a huge effect in terms of the buying price for the farmers and the price of biodiesel,” Mr. Demafelis said. 

Under Republic Act No. 9367 or the Biofuels Act of 2006, the Philippine biodiesel blend is directed to be at B2.

In a statement in February, the Department of Energy (DoE) said the country has 13 accredited biodiesel producers with a total rated production capacity of 707.9 million liters per year.

It added that the planned increase in CME blend to B5 in 2020 as part of the Biofuels Roadmap 2018-2040 was affected by the coronavirus disease 2019 (COVID-19) pandemic due to the lack of “assurances on the sufficiency of biodiesel supply, as well as the emergence of logistical limitations.”

Mr. Demafelis said a fair pricing should be determined for the trade of dried coconut meat (copra) used in biodiesel as it does not proportionately increase if the prices of the latter increase.

He added that the biofuels industry should be improved since it will further reduce greenhouse gas emissions and increase the income of farmers.

Erlene C. Manohar, deputy administrator for research and development of the Philippine Coconut Authority (PCA), said the agency proposed to increase the CME blend from B2 to B5, but has yet to receive any decision. 

“The last meeting of the National Biofuel Board was about two months ago. Until now, there is no decision,” she said in a mobile phone interview.

Ms. Manohar said the supply of feedstocks to be used for biodiesel production are “more than enough” to sustain production.

“As far as PCA is concerned, we have already submitted our projected feedstocks and it is enough, more than enough,” she said.

The United States Department of Agriculture-Foreign Agricultural Service (USDA-FAS) reported that the Philippines produced 242 million liters of biodiesel in 2019.

Energy department Undersecretary Felix William B. Fuentebella said at a virtual roundtable with BusinessWorld that the increase in biodiesel blend from B2 to B5 “will happen soon,” but noted its price and affordability as the main issues.

“In the biofuels law, we have that provision that will really favor local manufacturing of biofuel. [But] we see that it is more expensive for local production rather than importation,” Mr. Fuentebella said.

“Energy Secretary Alfonso G. Cusi requires evidence from the Department of Agriculture family such as the Sugar Regulatory Administration (SRA) and PCA that it will really benefit local farmers if we increase the blend from B2 to B5, which will happen soon, so it will be cleaner. But those are the issues,” he added.

Rafael S. Diaz, Jr., former president of the Asian Institute of Petroleum Studies, Inc., said in an e-mail interview that government personnel need to have an increased “working knowledge” on the potential of the local biofuels industry.

“My recommendation for the biofuels industry is for the management people of DoE, Department of Environment and Natural Resources, and Department of Health to understand and develop a technical appreciation and working knowledge of what biodiesel can do for our country to include the energy committees of Senate and the House of Representatives,” Mr. Diaz said in an e-mail interview.

Further, Mr. Diaz estimated that the plan to introduce B5 will not likely happen during the current DoE leadership.

“Just perhaps, the biodiesel industry may be headed for a B4 or B3 possibly by the fourth quarter as a compromise if there is an ongoing pressure for Mr. Cusi to effect a B5,” Mr. Diaz said.

Meanwhile, UPLB’s Mr. Demafelis said there is also a need to increase the supply of feedstocks to improve the country’s bioethanol production through the breeding of high-yielding sugar varieties.

“During breeding, we would be able to increase our raw materials and possibly reduce the price of ethanol since there would be more harvest, more profit on the per-hectare basis,” Mr. Demafelis said.

“The volume of molasses we produce is not enough to supply both fuel ethanol and ethanol for distilleries,” he added.

Rosemarie S. Gumera, department manager of SRA’s planning, policy and special projects, said in an e-mail interview that the 13 bioethanol distilleries accredited by the DoE have a total annual production capacity of 425.5 million liters.

“Only 3 of the 13 operating distilleries are using both sugarcane juice and molasses as feedstocks and the rest are using purely molasses as feedstock,” she said.

According to Ms. Gumera, the country’s bioethanol production fell 19.2% to 279.58 million liters in 2020 compared with the 346.14 million liters recorded the earlier year.

She added that the country was able to produce 100.88 million liters of bioethanol as of June.

Ms. Gumera said biofuel production in 2020 was lower as operations were affected by the restrictions brought about by the COVID-19 pandemic.

In spite of this, she said the country’s bioethanol output for 2021 is estimated to improve due to relaxed travel restrictions.

“However, production data from January to June 2021 seemed not promising as it is only 36% of last year’s production,” Ms. Gumera said.

“Assuming 100% utilization of sugarcane-based feedstocks available locally like molasses and sugarcane juice, the maximum bioethanol production would be about 400 million liters annually,” she added.

Ms. Gumera shared the same concern raised by Mr. Demafelis and said there is a need to develop feedstocks aside from sugarcane and molasses in order to fully meet the 10% mandate as provided by the Biofuels Act.

Under the said law, a minimum of 10% of bioethanol should be present in all gasoline fuel.

“However, these should be coupled with a distillery designed to process such new feedstock. Existing technologies of operational distilleries are designed for sugarcane juice and molasses as feedstocks,” Ms. Gumera said.

“So far, feasibility studies in the Philippines showed that the processing technology of sugarcane-based feedstocks into bioethanol is cheaper than starch-based technologies like cassava,” she added.

She also said that corn and other cereals are not allowed to be used as feedstocks for bioethanol under a joint administrative order of the National Biofuel Board since these are some of the country’s staple food.

Ms. Gumera also recommended that the country should allow the voluntary blending with higher bioethanol blends since greenhouse gas emissions will be further reduced with more bioethanol in gasoline.

“World Bank is now studying the carbon credit of producing sugar from sugarcane and Brazil is willing to assist the Philippines in terms of technical cooperation on carbon credit studies and policies of producing renewable energy from sugarcane like bioethanol and bagasse-based power,” Ms. Gumera said.

The DoE previously issued guidelines to ensure better compliance with the country’s biofuels law, such as the required blends for fuel ethanol and biodiesel.

Yields rise after BSP revises inflation anew, hawkish Fed

YIELDS on government securities edged higher last week as the Philippine central bank revised higher its inflation forecasts and as the US Federal Reserve signaled its massive bond-buying taper as early as November.

Bond yields, which move opposite to prices, rose by a week-on-week average of 5.38 basis points (bps), based on PHP Bloomberg Valuation Service Reference Rates as of Sept. 24 published on the Philippine Dealing System’s website.

Local bond yields increased across the board last Friday from their close on Sept. 17, except for the six-month paper, which declined by 1.15 bps to fetch 1.3717%. Meanwhile, yields on the 91- and 364-day notes went up by 0.87 bps and 2.74 bps, respectively, to 1.1215% and 1.6602%.

At the belly of the curve, rates of the two-, three-, four-, five, and seven-year bonds inched up by 0.87 bps, 3.97 bps, 7.57 bps, 10.18 bps, and 10.95 bps, respectively, to yield 1.9427%, 2.3155%, 2.6890%, 3.0651% and 3.7203%.

Long-date papers likewise increase as yields on the 10-, 20-, and 25-year notes grew by 14.3 bps (to 4.3406%), 3.87 bps (5.0640%), and 4.96 bps (5.0557%).

ATRAM Trust Corp. Head of Fixed Income Jose Miguel B. Liboro said local bond yields traded marginally higher initially on the back of the seven-year bond auction from the Bureau of the Treasury (BTr).

“Demand was healthy with more than 2x bid to cover and the auction was fully awarded. Local rates were steady heading into the BSP Monetary Board meeting. Policy rates were held steady as largely expected,” he said in an e-mail interview.

A bond trader said in a separate e-mail interview last week’s yield rally was due to hawkish expectations ahead of the US Federal Reserve policy meeting, while market participants have highly expected that the Bangko Sentral ng Pilipinas (BSP) will keep its policy settings unchanged.

“Participants mainly remained cautious [ahead of the Fed meeting] but anticipated strong upside in yields,” the bond trader said.

“However, the notable upward revisions in the local central bank’s inflation forecasts have driven yields higher on Friday,” the trader added.

The Treasury fully awarded the P35-billion reissued seven-year bonds, with a remaining life of six years and 10 months, on Tuesday as yields climbed due to rising inflation.

Bids for the bonds reached P76.128 billion, more than twice the P35-billion offer, prompting the BTr to open the tap facility for an additional P5 billion.

Average rate for the paper climbed to 3.826%, 3.7 bps higher than 3.789% seen in the previous auction.

Meanwhile, the BSP’s Monetary Board maintained for its seventh consecutive meeting the benchmark policy rate at record-low 2% on Thursday to allow the momentum of economic recovery to gain more traction by helping boost domestic demand and market confidence.

Overnight deposit and lending rates were also kept at 1.5% and 2.5%, respectively.

The Philippine central bank also sees consumer prices to rise faster in the next few years amid low supply.

It pencils in an inflation rate of 4.4% this year, revising upward from its 4.1% estimate the central bank gave last month. Inflation estimates were also raised to 3.3% and 3.2% for 2022 and 2023 from 3.1% forecast for both previously.

Offshore, the Federal Reserve turned hawkish on Wednesday after it signaled it will likely begin winding down its $120-billion monthly bond buying as early as November as long as the US jobs growth through September is “reasonably strong,” Reuters reported.

At the same time, interest rate increases may follow more swiftly than expected as the US central bank’s turn from pandemic crisis policies gains momentum.

“Buying sentiment turned very defensive in the local bond market on Friday after US Treasury rates shot up suddenly after the US Fed’s Open Market Committee meeting,” Mr. Liboro said.

“Somehow, expectations of higher US yields could indirectly drive local yields higher through a stronger dollar and might present some upward pressure on local inflation,” a bond trader said.

After Fed Chair Jerome C. Powell hinted at the November start of the bond-buying taper, “the bond market will continue to anticipate for higher yields moving forward as the US central bank finally acknowledged the need to taper its asset purchase program amid an improving US economy,” the trader said.

For this week’s trading session, Mr. Liboro expects investors to remain defensive heading into the BTr’s 10-year auction on Sept. 28, given the higher movement in global bond yields.

“The 10-year bond auction will set the tone for [this] week…,” he said. “Depending on where the BTr is comfortable awarding, we believe that there is value on the 10-year bond space at 4.5% or higher.”

The Treasury will offer P35-billion reissued 10-year papers — with remaining life of nine years and nine months — on Tuesday with coupon rate of 4%.

For the bond trader, local yields might continue their upward trajectory next week, as the upward revisions in the local inflation projections from the BSP could push yields higher.

“Moreover, likely strong US economic reports on inflation and GDP (gross domestic product) could also reinforce the latest hawkish guidance from the Fed. Some domestic reaction from higher inflation projections by the BSP is also expected to increase bond yields,” the trader added. — Abigail Marie P. Yraola

Looser lockdown, approval of P20-B preferred shares issuance lift Jollibee’s stock price

By Ana Olivia A. Tirona, Researcher

IMPROVED market sentiment drove up Jollibee Foods Corp.’s share price last week due to the gradual reopening of the economy as well as news of the fastfood giant’s approved preferred shares.

A total of 3.43 million Jollibee shares worth P686.13 million were traded from Sept. 20 to 24, data from the Philippine Stock Exchange (PSE) showed.

The homegrown restaurant group closed at P202 apiece on Friday, up 2.5% from the P197 close in Sept. 17. Compared with the first trading day of the year, its stock price has grown by 3.9%.

In an e-mail interview, China Bank Securities Corp. Research Associate Zoren Philip A. Musngi said the stock’s price benefited from the “market-wide bullishness” of traders as quarantine levels eased down in the National Capital Region (NCR) — which now allow restaurants to accommodate dine-in customers at a capacity.

Meanwhile, Timson Securities, Inc. Trader Darren Blaine T. Pangan said market players reacted positively to the approval of Jollibee’s shelf registration of P20-billion perpetual preferred shares.

“Traders may have felt optimistic about this, because apart from using the proceeds to partially finance the redemption of their senior perpetual securities, the proceeds may also be used for store expansion,” Mr. Pangan said in a Viber message.

In a statement on Sept. 17, the Securities and Exchange Commission (SEC) approved 20 million cumulative, nonvoting, non-participating, nonconvertible and redeemable perpetual preferred shares of Jollibee priced at P1,000 each, which may be issued in tranches within three years. The shares will be listed and traded on the main board of the PSE.

For its initial issuance, Jollibee will offer P8-billion worth of preferred shares with an overallotment option of up to P4 billion. Its public offering is slated for Sept. 28 to Oct. 4.

The company may net up to P11.9 billion in proceeds from the first tranche, which will be used to partially finance the redemption of its senior perpetual securities and to fund its commissary and store expansion.

Last Wednesday, the PSE approved Jollibee’s shelf listing of these preferred shares, although the local bourse said its approval is still “subject to the company’s compliance with all of the conditions and post-approval requirements of the exchange.”

“Preferred share issuances typically don’t have any direct effect to the price movement of the firm’s common equity. Though based on price action, it appears that investors greeted the development with bullishness, considering that the issuance will improve the company’s debt structure, interest burden, and enable the firm to continue its expansion plans,” China Bank Securities’ Mr. Musngi said.

“On a long-term basis, Jollibee’s prospects remain promising due to continuing global economic recovery, the company’s strong brand profile and steady expansion of its presence across the world,” he added.

Jollibee reported around P976 million in attributable net income in the second quarter, turning around from the P10.29-billion net loss recorded in the same three months last year.

Compared with its second-quarter performance in 2019, the latest figure is a 6.2% decline from the P1.04 billion it generated pre-pandemic.

Revenues in the second quarter grew by 57.2% to P36.69 from P23.34 billion a year ago.

As of end-May, the Jollibee group has 3,209 stores in the Philippines. Globally, it has 5,815 branches under 17 brands in 33 countries.

The company aims to open 450 stores this year, the majority of which will be abroad, and at least 500 new stores yearly in the following years.

“The pandemic adversely affected the balance sheet of Jollibee due to the more cyclical nature of its business. Given that more than 50% of its sales are still derived from the Philippines, recovery back to its pre-pandemic levels of profitability will hinge mostly on the country’s vaccination rates and pandemic mitigation measures,” Mr. Musngi said.

“From a technical perspective, Jollibee appears to be nearing the conclusion of its three-month consolidation, with the possibility of retesting the P217.00 resistance once it’s able to break out of P208.00. Initial support is currently pegged at P190.00, while critical support is at P187.00,” he added.

For Timson Securities’ Mr. Pangan: “With the stock moving sideways over the past few weeks, we’ll have to watch if its resistance at the P206.00 area would be broken in the coming days. Otherwise, P190.00 — P193.00 seems to be the nearest support area,” he said.

Porsche PHL unboxes market-specific 2022 Cayenne Exclusiv

PHOTO FROM PORSCHE PHILIPPINES

PORSCHE PHILIPPINES has unveiled a country-exclusive iteration of the new 2022 Porsche Cayenne. Dubbed the Exclusiv, it is said to “(transform) into an even more practical, luxurious and performance-oriented sports car for the family.” Now available at Porsche Center Philippines, the special trim has a features complement meant to appeal to the “discerning expectations of consumers” here.

The Cayenne, which globally surpassed one million units in cumulative worldwide sales last year, gets intelligent technologies like Park Assist with Surround View, which alerts the driver of obstacles in front and rear of the vehicle via audio and visual warnings, as well as provide a virtual overhead image of the vehicle’s environment; and the Porsche Entry & Drive, which automatically allows entry into the vehicle and access to its luggage compartment. Supplementing these are a four-zone automatic climate control system and the 20-inch Cayenne Sport Wheels.

These add to an extended list of standard equipment, which includes LED main headlights with PDLS, LED taillight strip, the Porsche Advanced Cockpit operating concept, the Porsche Communication Management with navigation module, and Connect Plus Module. Among items that are also available are the Porsche Active Suspension Management air suspension, automatically dimming mirrors, and a Bose Surround Sound System.

The 2022 Porsche Cayenne Exclusiv combines typical Porsche performance with everyday practicality. An intelligent lightweight construction is complemented by a turbocharged, 3.0-liter V6 gasoline engine producing 340hp and 450Nm of torque. This extracts spritely performance from the SUV — allowing it to attain 100kph from a standstill in only 6.2 seconds, onto a top rate of 245kph.

The Cayenne Exclusiv boasts an improved eight-speed Tiptronic S gearbox and its shorter response times and sportier ratios in the lower gears — resulting in enhanced on-road performance and off-road capabilities. A tall eighth gear ratio ensures low torque output, optimized fuel consumption and relaxed driving conditions.

Based “heavily” on the iconic 911, the Porsche Cayenne offers comfortable seating for up to five, along with a capacious cargo capacity. It has standard active all-wheel drive and Porsche 4D Chassis Control — both fitted to the 2022 Porsche Cayenne Exclusiv. Combined, the systems make the vehicle agile, secure, and safe to drive.

Amid the pandemic, the Stuttgart-headquartered brand posted a record first half in sales this year. It delivered 153,656 vehicles worldwide, representing a 31% leap versus the same period in 2020. “The significant demand in growth spanned all model series and global sales regions, with the most successful model being the Cayenne. From January to June this year, a total of 44,050 units of the Cayenne were sold, 12% more than last year. While sales in the US and China continue to grow, Porsche’s deliveries in Asia-Pacific, Africa and the Middle East increased by a quarter overall, with the Cayenne comprising the bulk of sales,” added Porsche.

For more information, contact Porsche Philippines at 0917-880-0328.

Subdued demand for residential properties continues to drag housing index in Q2, posts record low

RESIDENTIAL PROPERTY PRICES in the second quarter contracted at its steepest rate since 2016, primarily due to the continued decline in prices of condominium units and single houses amid the prolonged pandemic. Read the full story.

Subdued demand for residential properties continues to drag housing index in Q2, posts record low

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How PSEi member stocks performed — September 24, 2021

Here’s a quick glance at how PSEi stocks fared on Friday, September 24, 2021.

Investors await easing of mobility, factory data

PHILIPPINE STAR/KRIZ JOHN ROSALES

INVESTORS will be keeping an eye on the possible easing of quarantine restrictions in Metro Manila as coronavirus disease 2019 (COVID-19) cases begin to decline, analysts said, and the market will also be taking its cue from the upcoming release of manufacturing data.

The benchmark Philippine Stock Exchange index (PSEi) went up by 36.25 points or 0.52% to close at 6,951.53 on Friday, while the broader all shares index rose 21.14 points or 0.49% to 4,323.64.

Week on week, the PSEi gained 38.68 points from its 6,912.85 finish on Sept. 17.

“The PSEi ended the week with a small gain as the bulls tried to push the index higher despite persistently strong selling pressure,” China Bank Securities Corp. Research Associate Jason T. Escartin said in an e-mail last Friday.

“Contagion fears from China Evegrande’s possible default started the week, only to be eased by BSP’s (Bangko Sentral ng Pilipinas) saying it has minimal impact on local banks. Global markets also appeared to have shrugged off the Federal Reserve’s more hawkish pronouncements following its policy meeting this week,” he added.

On Thursday, the BSP said the debt crisis looming over Chinese real estate giant Evergrande Group has a minimal impact on Philippine banks. BSP Deputy Director at the Supervisory Policy and Research Department Ma. Cynthia M. Sison said, “claims from counter-parties based in China and its Special Administrative Regions is minimal at 0.86% of total banking system assets.”

Over in the US, its central bank expressed intention to reduce economic support soon without giving a definite date.

Analysts said the market will be keeping watch of the country’s COVID-19 situation as infections now hit a “downtrend.”

“Investors are also expected to watch out for the government’s decision on the social restriction measures of the country after Sept. 30. Easing of restrictions may send the local market higher,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message on Saturday.

Metropolitan Manila Development Authority Chairman Benhur D. Abalos, Jr. told DZMM TeleRadyo in an interview on Saturday that he hoped Metro Manila will be placed under Alert Level 3 from a more stringent Alert Level 4 by the end of the week as COVID-19 cases begin to decline.

The Health department on Saturday logged 16,907 new COVID-19 cases, which brings the country’s total cases to 2,740,175 while active cases stood at 165,092.

OCTA Research Group Research Fellow Fredegusto Guido P. David said the seven-day average of infections in the country declined to 17,526 from 20,218 with a negative growth rate of 13%. Meanwhile, the reproduction number declined to 0.98 from last week’s 1.16.

“If the decline continues, then it may spur positive sentiment in the market,” Mr. Tantiangco said. “The BSP’s latest confidence surveys which show that consumers and businesses are optimistic for the upcoming quarter may also give a boost to sentiment [this] week.”

Mr. Tantiangco also said the market will also take cues from the upcoming IHS Markit Philippines Manufacturing PMI to be released this week.

“We may see the index continue pushing higher in the coming week, though the resistance at 7,000-7,100 continues to appear strong. In case prices push above 7,100, the next resistance to test would be 7,300. In case prices retreat after hitting the resistance area, then a pullback to 6,760 is likely,” China Bank Securities’ Mr. Escartin said. — Keren Concepcion G. Valmonte

GOCC subsidies climb in August

SUBSIDIES extended to government-owned firms rose 747% year on year to P42.35 billion in August, led by the increased budgetary support provided to the Philippine Health Insurance Corp. (PhilHealth), the Bureau of the Treasury (BTr) reported.

The BTr said government-owned and -controlled corporations (GOCCs) subsidies were also much higher compared with the P6.08 billion recorded in July.

PhilHealth received P30.61 billion in subsidies, accounting for 72.3% of the August total.

It did not receive any budgetary support from the National Government last month and in August 2020.

The National Irrigation Administration (NIA) got P6.01 billion, up 130% from a year earlier.

The National Housing Authority’s (NHA) subsidies nearly doubled to P2.99 billion from P1.48 billion in July. It did not receive budgetary support in August 2020.

Other top recipients of subsidies include the Local Water Utilities Administration with P706 million, Small Business Corp. P500 million, Philippine National Railways P332 million, Philippine Children’s Medical Center P168 million and Development Academy of the Philippines P162 million.

Meanwhile, GOCCs that did not receive any budgetary support from the government that month were the Bases Conversion Development Authority, Cagayan Economic Zone Authority, National Home Mortgage Finance Corp., National Food Authority, National Power Corp., Philippine Crop Insurance Corp., Philippine Fisheries Development Authority, Philippine Postal Corp. and Tourism Infrastructure and Enterprise Zone Authority.

In the eight months to August, overall subsidies fell 9.8% to P136.72 billion.

This brought subsidies to 92% of the P148.2 billion budgeted for the year.

Some P76.06 billion went to support PhilHealth’s operations, followed by the P25.61 billion granted to NIA and the P11.78 billion to NHA.

Subsidies are granted to GOCCs to cover operational expenses not supported by their revenue. — Beatrice M. Laforga

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