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Megaworld REIT surges on market debut

MREIT, Inc., the REIT company of Megaworld, debuts on the Philippine Stock Exchange (PSE) on October 1 with a symbolic bell-ringing ceremony for its listing in four locations: the PSE Trading Floor in BGC, Eastwood City in QC, McKinley Hill in Taguig, and Iloilo Business Park — a first in PSE history. (From top, then bottom left to right) Leading the ceremonies at PSE were PSE AVP and Head of Issuer Regulation Division Atty. Marigel B. Garcia, MREIT, Inc. President and CEO Kevin Andrew L. Tan, Megaworld Chairman and CEO Dr. Andrew L. Tan, Department of Finance Sec. Carlos G. Dominguez III, PSE President and CEO Ramon S. Monzon, and PSE SVP and COO Atty. Roel Refran; MREIT, Inc. Director Katherine L. Tan, Megaworld COO Lourdes T. Gutierrez-Alfonso, and MREIT, Inc. Chairman Francisco C. Canuto in Eastwood City; MREIT Property Managers President and CEO Eric John C. Enriquez, MREIT Fund Managers, Inc. Corporate Planning Officer Englebert Teh, and MREIT, Inc. Legal Counsel Atty. Gina Alvarez in McKinley Hill; and Richmonde Hotel Iloilo GM Natalie Lim, Megaworld Hotels & Resorts Cluster GM for Visayas Avinash Menon, Megaworld Iloilo VP for Sales and Marketing Jennifer Palmares-Fong, and Reed Elsevier – Iloilo HR Director Maria Katrina Selina L. Ledesma in Iloilo Business Park. MREIT’s share price soared 3.7% on listing day, closing at P16.70 per share.

How close are we to making the e-switch?

Electric Vehicle Association of the Philippines President Edmund Araga speaks at the opening of the 9th Philippine Electric Vehicle Summit.

The 9th Philippine Electric Vehicle Summit showed we’ve gone so far that we can almost see the finish line. Almost.

IN MY YEARS of covering this annual conference of our local electric vehicle industry rock stars, I’ve truly never seen a shortage of enthusiasm and, dare I say it, chutzpah to try to reach further than our arms can realistically manage.

To the people unaware of how hard these EV champions have been working behind the scenes, electrified mobility has largely been a pipe dream only to be realistically entertained by economies more prosperous than ours. For a time, the concept seemed like a novelty — a parlor trick even — designed to pique our curiosity about what our mobility future could be like.

Two main hurdles have always caused us to snap out of our reverie and go back to our internal combustion engine (ICE)-powered rides: cost and range. But if we’ve been paying attention to local and international EV news, the price of admission has started to go down while range has gone the other direction. EVs have not only become contenders; they are, well, Thanos.

Inevitable.

In his welcome speech at this year’s staging of the Philippine Electric Vehicle Summit (PEVS), Electric Vehicle Association of the Philippines (EVAP) President Edmund Araga said as much. “Years ago, EVAP started with just a small pool of local vehicle parts manufacturers that share the interest on pushing for a local EV industry beginning with the electric jeepneys.

“Our membership has started to grow faster following the first Philippine EV Summit, with more local players joining the association. The annual PEVS has been instrumental in quickly spreading knowledge, and has become the platform for the whole EV value chain to gather, share ideas, create partnerships, and push the advocacy forward.”

Mr. Araga correctly described a significant development in the EV scene as “the second wave” — the influx of electrified offerings from OEMs (original equipment manufacturers). And then “in the past 12 months alone, EVAP has welcomed three EV charging system suppliers and network providers. Their entry heralds the beginning of the third wave.”

It appears that a snowball effect has started in earnest, and EVs — both as a result of global developments and the aforementioned efforts of key private and public figures in the Philippines — are starting to become feasible. Mr. Araga delivered the additional happy news that EVAP was approached by “local and foreign-owned major electronic and automotive parts and component manufacturers” to better understand the industry.

Thankfully, legislative and policy relief is coming at the right time. The much-awaited Senate Bill 1382 or the Electric Vehicles and Charging Stations Act, authored by Sen. Sherwin Gatchalian, has passed the Upper House third reading last May. Meanwhile, its Lower House equivalent, House Bill 4075, has hurdled its second reading. Mr. Araga expressed hope that these twin bills will soon be signed into law.

For its part, the Department of Energy released last July charging infrastructure guidelines and policy, which “covers the development, establishment, and operations of EV charging stations nationwide. That circular provides a pathway for fiscal incentives to motivate businesses to put up and adopt EV charging stations,” added Mr. Araga. Finally, the Land Transportation Office released an administrative order to firm up the guidelines on the classification, registration, and operations of types of EVs — ultimately making it clear to the end user just what EVs entail or mean.

Department of Energy Secretary Alfonso G. Cusi said during the opening ceremonies that he had endorsed to the Board of Investments a P2.5-billion project to bring in 20,000 imported EVs. Part of the plan involves the installation of 5,000 EV charging stations over five years. The Department of Trade and Industry, on the other hand, is said to be crafting an EV incentive strategy.

Despite a pandemic hiccup of sorts which slowed the influx and purchase of EVs, Mr. Araga shared that, overall, the country has a total of 12,965 registered EVs from 2010 to 2020. That’s certainly very good news.

That’s because, at this point, it’s fairly obvious the writing is on the wall. If we don’t want to be EV laggards reduced to gaping and gawking at the countries with a thriving EV scene (and all the benefits it brings), then we should follow through on our dreaming with concrete steps to achieve them. The legislative and governmental follow-through is key.

So, from our vantage point at least, things seem to be coming along nicely.

Shares to move sideways ahead of inflation data

BW FILE PHOTO

STOCKS could move sideways this week on fears of faster inflation and with the market waiting for more hints from the US central bank on its plan to wind down stimulus measures.

The Philippine Stock Exchange index (PSEi) lost 29.28 points or 0.42% on Friday to close at 6,923.60, while the broader all shares index inched up by 0.67 point or 0.01% to 4,326.51.

Week on week, the benchmark PSEi shaved off 27.93 points from its 6,951.53 finish on Sept. 24.

“[This is] after US stock markets corrected lower recently to the lowest in one to two months, and after NCR’s (National Capital Region) alert level or quarantine restrictions [were] maintained until Oct. 15, thereby tempering or limiting further reopening of the economy,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in an e-mail on Friday.

The S&P 500 lost 2.2% week on week, while the Nasdaq declined 3.2% and the Dow Jones Industrial Average went down by 1.4%.

Back home, Metro Manila will remain under Alert Level 4 until mid-October, the government said last week. However, restrictions on gyms, restaurants, and some personal care services were eased for those fully vaccinated.

For this week, analysts said leads will include September inflation data, which will be released by the Philippine Statistics Authority on Tuesday, Oct. 5.

“Inflation fears will cap market upside on PSEi’s attempt at breaking above the 7,000 mark,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message on Saturday.

A BusinessWorld poll of 17 analysts yielded a median estimate of 5% for September headline inflation, closer to the upper end of the central bank’s 4.8%-5.6% estimate for the month and above its 2-4% target for the year. If realized, this will be faster than the 4.9% in August as well as the 2.4% a year earlier. It will also be the quickest print since the 5.1% in December 2018.

Analysts said higher food and utility prices as well as base effects likely caused a continued uptrend in inflation last month.

PNB Securities, Inc. President Manuel Antonio G. Lisbona said investors will also monitor the US Federal Reserve.

“The market will be looking closely at any developments relating to stimulus tapering by the US Fed as the factor to take money off the table in the coming sessions. This is on the back of rising and persisting inflation, which has frustrated the US central bank’s claim that it would be transitory,” Mr. Lisbona said in a separate Viber message on Saturday.

“While the Philippines has enough monetary policy space, the market will be affected by global market volatility in the short term,” he added.

“It looks like the market will trade between 6,780 and 6,980 with the midpoint as the initial support area,” Mr. Lisbona said. — K.C.G. Valmonte

Local yields track US debt

YIELDS on government securities (GS) traded at the secondary market climbed last week amid increasing inflation expectations and rising US Treasury rates.

Debt yields, which move opposite to prices, went up by an average of 10.06 basis points (bps) week on week, based on the PHP Bloomberg Valuation (BVAL) Service Reference Rates as of Oct. 1 published on the Philippine Dealing System’s website.

Yields at the secondary market increased almost across the board on Friday from their close on Sept. 24. At the short end of the curve, yields on the 91-, 182-, and 364-day Treasury bills (T-bills) inched up by 0.86 bp (to 1.1301%), 2.10 bps (1.3927%), and 0.26 bp (1.6628%), respectively.

At the belly, the rates of the two-, three-, four-, five-, and seven-year Treasury bonds (T-bonds) went up by 17.36 bps (to 2.1163%), 21.72 bps (2.5327%), 23.11 bps (2.9201%), 22.35 bps (3.2886%), and 17.86 bps (3.8989%).   

At the long end, the rate of the 10-year T-bonds increased by 16.86 bps to fetch 4.5092%. On the other hand, those of 20- and 25-year papers went down 5.23 bps and 6.57 bps, respectively, to 5.0117% and 4.9900%.   

“Local bond yields skyrocketed on a week-on-week basis amid a multitude of catalysts. The reasons for the sell-off were attributed to the surge in US Treasury yields due to the US Federal Reserve’s hawkish tilt and that it may taper its bond buying program soon, then the rally in global oil prices also weighed on sentiment,” a bond trader said in a Viber message.

“[O]nshore, the BSP (Bangko Sentral ng Pilipinas) released its inflation forecast for the month of September and that it could possibly go up to a 5.6%, a level not since mid-2018 if therefore realized,” the bond trader added.   

First Metro Asset Management, Inc. (FAMI) said the market also reacted to the Bureau of the Treasury’s monthly borrowing schedule.

There was a sell-off in US Treasuries last week as the Fed said it could begin winding down its $120-billion monthly bond buying program as early as November. While yields on the benchmark 10-year Treasuries dipped in the latter part of the week, they were still around 20 bps higher compared with levels seen in end-August.

Back home, BSP Governor Benjamin E. Diokno said at an online briefing on Thursday that the consumer price index (CPI) likely quickened to 4.8-5.6%, beyond the central bank’s 2-4% goal for this year.

The BSP raised its inflation forecast for this year to 4.4% from 4.1% amid potential supply-side issues. Inflation estimates for 2022 and 2023 were also raised to 3.3% and 3.2% from 3.1% for both.

Inflation averaged 4.4% so far this year following the 32-month high 4.9% print seen in August.

Meanwhile, the BTr said plans to borrow P200 billion from the local debt market this month, less than the P250-billion plan in September, as well as the actual amount raised that month worth P264.95 billion. For October, the Treasury looks to borrow P60 billion via T-bills and P140 billion from T-bonds during its weekly offerings of government debt.

“Market will look now at BTr’s willingness to award [this] week’s 7-65 reissuance at even higher levels which would likely prompt another round of sell-off for seven-year and longer tenors,” FAMI said, referring to the reissued seven-year bonds on offer on Tuesday.

“Focus will also be on September inflation as cost side pressures mounted pushing inflation well past BSP’s 2-4% target,” it added.

For the bond trader: “[T]he yield curve is expected to maintain its steepening bias ahead of the release of September CPI and as market players continue to monitor developments abroad such as news surrounding the call to raise the debt ceiling in the US and then vigilance as well on Evergrande Group’s developments. The market will also likewise monitor BTr’s seven-year auction and the conclusion of the retail dollar bond (RDB) offering as to its final issue size.”

The government raised $1.593 billion (P80.91 billion) from its first-ever onshore retail dollar bond sale that concluded last week, the BTr said.

Finance Secretary Carlos G. Dominguez III said over the weekend that the BTr reported that it closed its two-week offering of five-year and 10-year RDBs on Friday, awarding nearly four times as much as the $400-million target amid strong participation via electronic channels.

BDO Unibank, Inc. Chief Market Strategist Jonathan L. Ravelas said in a Viber message that yields will “continue to move sideways to up in the near term.” — Lourdes O. Pilar

Hino Insure to provide total support for customers

Hino Motors Philippines President Mitsuharu Tabata (left) and Standard Insurance President and CEO John Echauz sign the memorandum of agreement between their two companies to offer the Hino Insure product. — PHOTO FROM HINO MOTORS PHILIPPINES

HINO MOTORS Philippines (HMP), the exclusive manufacturer and distributor of Hino trucks and buses in the country, partnered with Standard Insurance for the Hino Insure product.

Hino Insure is a specially designed insurance package which includes roadside assistance; easier, faster, and accurate claims processing; big cost savings for repairs done at Hino dealers; and smooth and hassle-free placement of the insurance policy.

Protection is provided for the insured vehicle against damage or loss caused by “collision, self-ignition, lightning, malicious damage, and theft.” This also includes coverage against Acts of Nature which is not a standard feature in most comprehensive truck insurance packages. An Acts of Nature cover will ensure that Hino trucks will be restored to their original running condition in the event of damage caused by flooding, typhoon, earthquake, and other natural phenomena. The insurance package also protects the owner from medical and hospital bills to treat injuries of the driver, passengers, pedestrians, and third parties — as well as repair costs to third-party property damage caused by the insured vehicle. The special insurance package for Hino trucks and buses is available in all Hino dealerships nationwide.

Said HMP President Mitsuharu Tabata, “One of the many things we’ve learned during this pandemic is to always be prepared. Guided by our Total Support philosophy, we at Hino always try to think ahead and provide holistic quality service for our vehicle owners. We believe that with this new partnership with Standard Insurance, we can continue to provide our customers not just our excellent vehicles and services, but also the peace of mind from having a secure and continuous business operation.”

Meanwhile, Standard Insurance President and CEO John Echauz added, “Having Hino as our partner is a great opportunity, and allows us to reach business owners who wish to protect their assets. We recognize the need to secure business during these trying times and recover possible losses when unforeseen circumstances arise. We are committed to delivering hassle-free claims and other necessary support to Hino’s customers.”

For more information, visit www.hino.com.ph, and follow @HinoMotorsPH on Facebook or Twitter.

Style (10/04/21)

THE Musée du Louvre UT Collection 2021 Autumn/Winter

Uniqlo marks 3rd anniversary with new collection, promo

THE UNIQLO Manila Global Flagship Store is celebrating its third anniversary with the latest 2021 Fall/Winter LifeWear collection, updated store designs, exclusive offers, and local community collaborations. From Oct. 1 to 7, Uniqlo Manila customers can enjoy exclusive limited offers on select LifeWear pieces for men’s, women’s, and children. Additionally, for every P3,000 purchase, they will get a free gift from Uniqlo and its community partners. Available at the store this month are the new LifeWear 2021 Fall/Winter Collection, the UT Collaboration Collection with the manga and animé series Jujutsu Kaisen (featuring exclusive designs from the animé television series, including battle scenes), the Musée du Louvre UT Collection 2021 Autumn/Winter T-shirts with graphics focusing on historical masterpieces such as the Mona Lisa and the Winged Victory of Samothrace, and the Uniqlo x Theory Fall/Winter 2021 Collection of sophisticated everyday wear which expands the boundaries of gender and sensibility. Uniqlo LifeWear is simple, high-quality everyday wear that enhances the lives of all people with a practical sense of beauty and sophisticated design. Installations have been created on each floor to convey the appeal of this concept at a glance. For its third anniversary, Uniqlo Manila collaborated with local artist Manix Abrera to capture the concept of Neighborhood Living in his designs. His special art style allows customers to create their own one-of-a-kind T-shirt using photos, text, and stickers they can choose in-store. Mr. Abrera is best known for Kikomachine, a series of comics that have since been turned into bestselling books. For more updates, visit Uniqlo Philippines’ social media accounts, Facebook (facebook.com/uniqlo.ph), Twitter (twitter.com/uniqloph) and Instagram (instagram.com/uniqlophofficial) and the Uniqlo Philippines’ website at uniqlo.com/ph.

Vintage Avon posters get a 2021 makeover

IN CELEBRATION of its 135 years, direct selling company Avon has collaborated with British illustrator Bett Norris to reimagine a series of its iconic posters, showcasing a variety of people who have embodied and built the company throughout its history. Taking a selection of advertising assets from Avon’s archive, Norris has given the visuals a modern twist, reimaging the people and the products in a contemporary perspective. Throughout the evolution of selling and distribution with a more diverse representation of the market, these posters retain the core values of Avon — creating a better world for women while doing beauty differently. Visit www.avon.ph or like and check out Avon Philippines on Facebook to find out more.

ShopSM’s first October Super Month

SHOPSM is the online shopping platform of the largest retail chain in the Philippines, SM. With its massive selection of brands from every department — men, women, and kids’ fashion, bestselling beauty products, and cosmetics, to home essentials, plus groceries, customers can easily shop in just a few taps. During ShopSM’s first October Super Month, customers can avail themselves of a number of deals. Get an extra 10% on orders when one checks out from 8 to 11:59 p.m. daily on Oct. 8-14. No minimum spend is required and the customer can get a daily discount of up to P2,000 when they use the code SUPERMONTH19 from Oct. 8 to 14, and SUPERMONTHALLDAY from Oct. 15 to 17. There are also freebies thanks to “10 Days of Gifts.” Customers can choose which gift to receive including Viu and iflix premium subscriptions, Grab vouchers, and more from SM Markets. There will be discounts of up to 70% on selected items during the Super Month. Payment options include Cash on Delivery, credit and debit cards, GrabPay, and GCash, and the shopper can earn SMAC points even when shopping online. SMAC members can also get exclusive discounts and vouchers for their ShopSM haul. Visit ShopSM’s official Facebook, Instagram, and TikTok to stay updated and score deals at ShopSM’s October Super Month. The ShopSM app is available on the App Store or Google Play Store.

Gap’s Fall 2021 collection focuses on ‘individuals’

GAP continues to champion modern American optimism by celebrating individuals who represent the positive impact of being their true self. Gap’s Fall 2021 INDIVIDUALS adult platform is fueled by nostalgic fashion, with Gap essentials made iconic in the 1990s, reinvented for today, including new loose, relaxed fits in denim and khakis, hoodies, crisp white and plaid button-downs, and transitional outerwear. Fall 2021’s denims offer jeans that fit and flatter every body. The women’s line reintroduces the Vintage slim, formerly known as the cigarette. Fitted through the hip and thigh with ankle-skimming that hits above or at the ankle, it’s sleek and slim but not as tight as jegging and skinny fits. Also available in High Rise Fit. The men’s line has the Relax Taper Fit with five-pocket styling in stretch denim for extra flexibility and comfort. These denims are part of Gap’s water-saving Washwell program that uses at least 20% less water than conventional wash methods. Fan favorite Fit Tech for Men’s shirts now are loaded with cool details and innovations such as hidden pockets and more. Created with recycled poly and organic cotton, this season’s performance pieces are made with moisture-wicking fabric and dissolvable mesh, making them breathable. As an added extra, pieces are also made of ionic plus fabrication to help fight odor. Men’s Gap Fit is exclusive at gap.com.ph. Meanwhile, VIP customers can enjoy an extra 10% off on top of primary promos. Plus, Welcome and Milestone vouchers can also be used on regular-priced and promo items. Customers get P10 off when they bring their own paper bag when shopping at Gap. For more information on the new collection including teens and children’s clothing, visit www.gapinc.com.

Havaianas launches the Rainbow Walkway

HAVAIANAS Philippines has launched the Rainbow Walkway in Bonifacio High Street. Inspired by Pride March, the Rainbow Walkway aims to serve as a creative alley and safe space for the LGBTQIA+ community and their allies. People strut down the PRIDE Catwalk or chill on the socially distanced Rainbow Benches. There’s a Charging Station for mobile phones or e-bikes, as well as vibrant #AllLoveWelcome String Art. Havaianas Philippines introduced its first-ever Pride Squad earlier this year with the hopes of creating a welcoming environment during the month-long Pride celebration. To further support the community, a percentage of every purchase from the Pride Collection is donated to All Out (a global LGBTQIA+ non-profit organization) and the Metro Manila Pride Organization (a local LGBTQIA+ non-profit organization), non-profit organizations that are focused on empowering the LGBTQIA+ community and defending their rights.

Shopee intros new endorser Kim Chiu, 10.10 Brands Fest

E-COMMERCE platform Shopee introduces its newest brand ambassador, Kim Chiu, alongside the launch of the 10.10 Brands Festival, its biggest brands sale of the year. The actress will feature in Shopee’s new TV commercial and many in-app activities. Among other appearances, Ms. Chiu will be found on in-app games such as Spin & Win and Guess It Right. This October, users can join the #10BrandFaves contest featuring Ms. Chiu for a chance to win 1,000 Shopee coins. There will be behind-the-scenes videos on Shopee’s official YouTube and TikTok channels, and Kim Chiu-themed Instagram stickers. Users can also interact with the actress herself during her Twitter takeover on Shopee’s official Twitter account on Oct. 9. Until Oct. 10, shoppers can enjoy free shipping with no minimum spend, big brand giveaways, and up to ₱1,000 off brand vouchers at Shopee’s 10.10 Brands Festival. Lucky shoppers can win ₱430,000 worth of prizes, such as vouchers, bundles, newly launched items, and even a lifetime supply of products, from over 30 participating brands. Leading up to 10.10, shoppers can also look forward to Nestle, Deerma, GoMO!, Lactum, Colgate Palmolive, Shigetsu, P&G Beauty, Garnier, and Belo Brand Days on Shopee Mall, where they can get discounts up to 80% off, branded items as low as ₱179, and a free gift with every purchase. Shoppers can check out different themed sales on Shopee including the Mom & Baby Fair on Oct. 4, Work From Home Fair on Oct. 5, Gadgets and Gizmo Fair on Oct. 6-7, and Beauty and Wellness Fair on Oct. 8-9. At the 10.10 Brands Festival, shoppers can use ShopeePay to buy load, pay bills, and scan to pay. They can activate their ShopeePay wallet and top up through online banking, debit card, and over-the-counter partners to get up to 50% discount on load from Globe, Smart, Sun, and TNT; 50% cashback from Maynilad, PLDT, and a growing list of partner billers; and ShopeePay ₱1 Deals from Puregold, Ultramega Supermarket, Potato Corner, and other partner merchants. For more information, visit https://shopee.ph/.

US has ‘promising’ vaccine for deadly African Swine Fever

REUTERS

THE US Department of Agriculture (USDA) has potentially found a vaccine to combat African Swine Fever, a disease that devastated hog herds in China and was recently detected in the Dominican Republic and Haiti, the agency said.

The vaccine, which officials described as “promising,” provided immunity to one-third of swine within two weeks and full protection in all animals within four weeks, according to a study.

It “could play an important role in controlling the ongoing outbreak threatening the global pork supply,” said Douglas Gladue, a USDA researcher who co-authored the study.

US researchers will continue to determine the safety and efficacy of the vaccine under commercial production conditions and are working with a commercial partner, Navetco National Veterinary Joint Stock Company, located in Vietnam.

African Swine Fever was first detected in 2007 in the Republic of Georgia and has caused widespread losses of hogs in Eastern and Central Europe and Asia, at times driving up pork prices worldwide. The outbreaks in the Dominican Republican and Haiti were the first detected in the Americas in recent years. The virus is not known to infect humans. — Bloomberg

Investors pocket gains after Aboitiz group’s $1.5-B JERA deal

PHILSTAR

INVESTORS pocketed gains in Aboitiz Power Corp. last week after its parent holding firm announced the sale of up to 27% stake in its listed energy arm to Japan’s largest power generation company for nearly $1.5 billion.

A total of 49.88 million AboitizPower shares worth P1.59 billion were traded from Sept. 27 to Oct. 1, data from the Philippine Stock Exchange showed.

The share price of the Aboitiz group’s holding company for its energy-related businesses closed at P31.65 apiece on Friday, down by a peso or 3.1% from the P32.65 finish on Sept. 24. It has gained 17.2% since the start of the year.

“Investors took profit after the news came out of Aboitiz [Equity Ventures, Inc. (AEV)] selling 25% stake to Japan’s JERA [Co., Inc.],” Mercantile Securities Corp. Analyst Jeff Radley C. See said in an e-mail interview.

AEV approved on Sept. 27 the sale of a 25.01% stake in AboitizPower to JERA Asia Pte. Ltd., a wholly owned unit of Japan’s JERA Co.

The Aboitiz family’s privately held company also agreed to sell an additional 1.99% stake in the power holding firm.

Once done, JERA would own 27% of AboitizPower, while AEV will keep the majority at 52% from 77% previously.

The $1.463-billion deal is still subject to a slew of regulatory approvals, including those of stockholders in a special meeting on Dec. 9.

JERA — a joint venture between Japanese electric companies Tokyo Electric Power Group and Chubu Electric Power Group — is Japan’s largest power generation company and produces about 30% of its electricity.

It will also be working with AboitizPower for the latter’s clean energy projects, among others.

Following the announcement, AboitizPower shares dipped by 9.6% and 3.6% on Tuesday and Wednesday, respectively, to P30.90 and P29.80 from P34.20-per-share finish on Monday.

This prompted AEV to reassure investors on Tuesday that the JERA deal will be used to bankroll other Aboitiz businesses or to refinance existing debt. It will also bring in “a very strong partner” for AboitizPower.

“Long term, this will bode well for Aboitiz group since it can get some expertise or know-how from Japan’s JERA in the power-generation sector,” Mercantile Securities’ Mr. See said.

“With the transaction, Japan’s JERA Co. may contribute to optimize the resources of [AboitizPower] to build the almost 4,000 MW (megawatts) of renewable energy within in 10 years through technology transfer attune to the times…,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message.

AboitizPower is looking to build about 3,900 MW of renewable energy in the next 10 years, bringing its portfolio to 9,200 MW, to achieve a 50:50 renewables and thermal capacity mix.

In the first semester, its attributable net income grew by 2.7 times to P10.13 billion from P3.74 billion a year ago.

Mr. Pangan sees AboitizPower’s bottom line to grow by double-digits to about P20 billion by yearend.

“For [the third quarter], though restrictions are longer due to the Delta variant but with better mobility, we may continue to see sustained growth in its bottom line with better [Wholesale Electricity Spot Market] prices as compared to last year, better hydroelectric performance on higher water levels, and commissioning of GNPower Dinginin Unit 1 at 668-MW rated capacity in the [second quarter],” he said.

This week, Mr. See expects AboitizPower to move sideways between P30 and P35 a share.

Mr. Pangan gave his support and resistance at P29.60 and P35.10, respectively.

“[This] week, we may continue to see rebound in the price of AboitizPower after the profit taking [last] week due to a volatile market,” he said. — Bernadette Therese M. Gadon

Analysts’ September 2021 inflation rate estimates

INFLATION likely quickened beyond the central bank’s target in September, as prices of food and utilities continued to surge, according to analysts. Read the full story.

Analysts’ September 2021 inflation rate estimates

How PSEi member stocks performed — October 1, 2021

Here’s a quick glance at how PSEi stocks fared on Friday, October 1, 2021.

Duterte says daughter to run for President in 2022

DAVAO City Mayor Sara Duterte-Carpio

By Kyle Aristophere T. Atienza, Reporter

PRESIDENT Rodrigo R. Duterte on Saturday said his daughter Sara would run for President next year.

Sara Duterte-Carpio, who is mayor of their hometown Davao City, will run in tandem with Senator Christopher Lawrence T. Go, the President’s former aide, the tough-talking leader told a local broadcast journalist.

“It will be a Sara-Go [tandem],” Mr. Duterte said in Filipino outside a hotel near Manila, the Philippine capital, where Mr. Go filed his certificate of candidacy for vice-president.

“No comment,” Ms. Carpio said in a mobile phone message on Sunday. She filed her certificate of candidacy for a third term as mayor at the weekend.

Mr. Duterte, who had flip-flopped on his 2016 presidential run, earlier said he would drop out of the vice-presidential race if his daughter runs for President.

A Social Weather Stations poll in June showed that six of 10 Filipinos thought Mr. Duterte’s vice-presidential run would be illegal.

Ms. Carpio, whose regional party has allied itself with traditional parties less than a year before the 2022 elections, has topped presidential opinion polls.

Asked when his daughter would file her candidacy for President, Mr. Duterte said: “I do not have any idea at all.” “We don’t talk about politics. I would say that it is for the better,” he added.

The Duterte camp’s political move is part of a plan to create a public clamor for Ms. Carpio’s presidential candidacy, said Jean Encinas-Franco, a political science professor at the University of the Philippines (UP).

“It may not be a reluctance but a strategy,” she said in a Facebook Messenger chat. “The potential opponents are uncertain of who they are up against and they also find it difficult to look for a good pair of President and vice president,” she said. “The Dutertes are also shaping the media narrative.”

Ms. Carpio seemed reluctant to run for the country’s top post because she does not want to expose her family to public scrutiny, said Maria Ela L. Atienza, who also teaches political science at UP.

“Maybe, the reluctance is just for show and part of their overall political tactic to surprise competitors,” she said in a Viber message. “Remember that President Duterte also said he was retiring from politics in 2015, but then replaced Martin Diño as a presidential candidate.”

Ms. Atienza said the ruling camp might be doing everything they can to protect Mr. Duterte from potential lawsuits.

“It seems there is pressure for the daughter to run to protect her father from possible cases here and the International Criminal Court (ICC),” she said.

The ICC has ordered an investigation of Mr. Duterte’s crackdown on illegal drugs that has killed thousands, saying crimes against humanity might have been committed.

The court will also probe vigilante-style killings in Davao City when Mr. Duterte was still its vice mayor and mayor.

There have been speculations that the Dutertes would consider ex-Senator Ferdinand “Bongbong” R. Marcos, Jr., the late dictator’s son, as either a presidential or vice-presidential candidate.

Political analysts have said Mr. Duterte could not afford to lose support from the Marcoses because their loyal backers supported his presidential candidacy in 2016.

A recent Pulse Asia Research poll showed that Ms. Carpio and Mr. Marcos were among the top choices for president.

Politicians have until Oct. 8 to file their certificates of candidacy. Substitutions are allowed until mid-November.

COVID-19 situation in metro and 8 other regions better, says OCTA

PHILIPPINE STAR/ MICHAEL VARCAS

CORONAVIRUS infections in the capital region and other key economic hubs have been decreasing, according to researchers from the country’s premier university.

Cases in the National Capital Region (NCR) and eight other provinces were on a “downward trend,” OCTA Research Group fellow Fredegusto P. David tweeted on Sunday.

The so-called NCR Plus 8 is composed of Metro Manila, Bulacan, Pampanga, Cavite, Rizal, Laguna, Batangas, Cebu City and Davao City.

Mr. David said Metro Manila’s coronavirus reproduction number was 0.83, which is lower than the critical cut-off of 1.4

NCR Plus 8 areas had reproduction numbers below the critical level, he said, citing government data.

Cavite had the lowest reproduction number at 0.63, followed by Cebu City at 0.66, Laguna at 0.68, Bulacan at 0.7, Batangas at 0.74, Pampanga and Rizal at 0.85 each and Davao City at 0.89, Mr. David said.

Still, the infection rates in all NCR Plus 8 areas except Cebu City were within the high risk level, he added. — Kyle Aristophere T. Atienza

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