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Market debut drives Monde Nissin stock

By Ana Olivia A. Tirona, Researcher

MONDE NISSIN Corp. ended up as the most actively traded stock in the Philippine Stock Exchange (PSE) last week following its market debut on Tuesday.

A total of P6.40-billion worth of 477.94 million Monde Nissin shares exchanged hands on the trading floor from June 1 to 4, PSE data showed.

Monde Nissin shares closed at P13.40 per share on Friday. This was down by 0.59% from its initial public offering (IPO) price of P13.50.

“Investors were cautiously optimistic on the new IPO as it was a food manufacturer of highly recognized brands that are in a majority of Filipino homes… There were some concerns though about the size of the offering as it was the biggest IPO in the PSE’s history and also the timing of the offering,” AAA Southeast Equities, Inc. Research Head Christopher John J. Mangun said in an e-mail.

“Price movement was stable in the first few trading sessions although volatility picked up which sent the price substantially lower, down about 6% from the IPO price at one point before recovering. The recovery is a sign that investors were quick to scoop up Monde Nissin shares at a slight discount,” he added.

In a separate e-mail, Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce noted the stock had been trading below its IPO price on relatively low volatility and was expected of any large-cap issue making its debut in the local bourse.

“However, there seems to be confidence in the company — bouncing back after hitting a low of P12.68 per share [last Thursday]. Investors may yet still consider [Monde Nissin] a good addition to their investment portfolios,” Mr. Arce said.

The food manufacturer offered 3.6 billion shares to the public at P13.50 each. Excluding underwriting commission and listing expenses, the company said it raised P48.6 billion, or around $1 billion from its maiden offering.

Based on its prospectus, the company is planning to spend around 57.2% of its IPO proceeds to fund its capital expenditures (capex), while around 28.8% and 14% will be used for the redemption of convertible notes and repayment of loans, respectively.

“A big chunk of the [IPO] funds will go towards paying its liabilities which eliminates future interest costs. Some of it will go towards the expansion of facilities, although it will not translate into increased production for at least another two years,” Mr. Mangun said.

For this year, the company will allot P8 billion in capex. It also earmarked P9 billion in capital spending in 2022 and P10 billion in 2023.

For its branded food and beverage business in the Asia-Pacific region, Monde Nissin will finance key projects, which include the completion of its facility in Malvar, Batangas, and the production of healthier noodle lines.

Financial statements attached to the company prospectus show Monde Nissin booked a consolidated net income of P8.07 billion in 2020, up 21.3% from a year ago. During the same period, net sales grew by 3.8% to P67.9 billion.

“Better profit margins and lower interest expenses will sustain its net income growth from last year, which is between 15-20%. This translates to P9-10 billion for 2021 which is our rough estimate,” AAA Southeast Equities’ Mr. Mangun said.

For Globalinks’ Mr. Arce, lower interest expenses and the higher foreign exchange gain last year enabled Monde Nissin to increase its profits by a substantial amount.

“This year, assuming the repayment of loans will cut interest expenses by 60% given same sales growth of 3.8%, Monde Nissin’s net income should increase by 19.4% to P9.6 billion,” he said.

“But this growth in earnings will come as a result of financial deleveraging rather than organic growth. Earnings growth after 2021 will more or less mirror the company’s average sales growth of less than 5%,” he added.

Mr. Arce further noted the company’s earnings growth over the long term will depend on the success of its meat alternative business, which has been losing in the past two years.

The company has said it will use some of its IPO proceeds to expand in the United States through its Quorn Foods brand, which offers consumers healthier alternatives to meat.

Mr. Arce placed Monde Nissin’s stock support and resistance at P13.10 and P13.56, respectively, noting investors will still be assessing the company’s performance in the next few weeks.

For AAA Southeast Equities’ Mr. Mangun: “The current low of P12.68 is the immediate support with the high of P13.56 as the resistance, although it will take several weeks before we can determine the trend,” he said.

The Philippines-based manufacturer provides most of Filipino household staples such as Lucky Me!, Skyflakes, and M.Y. San Grahams.

Letter to the Editor (06/07/21)

June 2, 2021
Mr. J.ALBERT GAMBOA
BUSINESSWORLD

Dear Mr. Gamboa,

We hope that everything is well with you today.

We read your column (https://www.bworldonline.com/vax-populi/) about the high billing concern of Ms. Aurora Pijuan last year.  Allow us to relay what transpired at that time.

It was in March 2020 when the Enhanced Community Quarantine (ECQ) was declared that also covered the areas served by Meralco.  For safety and to avoid further spread of the virus, meter reading activities were halted because of the community lockdown.  This resulted to the bill estimations that was based on the past 3 months’ average daily consumption following the Distribution Services and Open Access Rules (DSOAR) issued by the Energy Regulatory Commission (ERC).

In the case of Ms. Pijuan, her scheduled meter reading date is every 7th day of the month.  Since the community quarantine started on March 15, 2020, we were still able to read her meter on March 7.  Hence, the March bill was based on the actual meter reading and was read prior to the declaration of ECQ. This was not the same for her April 2020 bill.  With the lockdown at that time, the bill estimation was applied to her April 2020 bill and was computed using the average of January, February and March 2020.

The period from January to March was relatively cooler. Since the basis was the average of the cooler months, this yielded an estimated electricity consumption that may have not matched Ms. Pijuan’s actual usage for her billing period of March 7 to April 7.  Had there been an actual meter reading, it would have been immediately reflected.  However, due to the lockdown in April, this was not possible at that time.

We resumed our meter reading activities on May 6, following safety protocols for the meter readers to perform their duties.  With this, we were able to read the meter of Ms. Pijuan on May 7, as well as the other customers in the area.

With the actual meter reading on May 7, this was deducted from the last actual meter reading on March 7.  The difference is the actual electricity consumption of Ms.Pijuan for the 2 months.  From this, the estimated consumption in April was deducted from the total May kWh consumption, resulting to the May 2020 bill rendered that is Ms. Pijuan’s cause of concern. 

It was on May 25, 2020, when we received the concern of Ms. Pijuan.  We dispatched our crew on June 1, 2020 to check the meter reading.  As the meter registration progresses, the reading obtained on June 1 validated the May 7 meter reading.  With this validation, it can be concluded that the April bill was under-estimated, and the unregistered electricity consumption was carried to the May bill.

Electricity consumption is derived from the present meter reading less the previous meter reading.  It is a straightforward approach done monthly.  The same is true for the succeeding and continuous meter readings of Ms. Pijuan’s electric meter.  From this process, the electricity bills are rendered.

The electric meter being the tool used to register electricity consumption, we offered to have the meter tested in her presence or even accompanied with a trusted representative, to validate the accuracy of the meter.  However, the past 2 attempts to have the meter tested did not push through as Ms. Pijuan declined, stating that the meter has no defect.  She mentioned that the meter was registering correctly but on the other hand, pointed out that her electric consumption should not be that high in May.

With this statement, we presented a comparison of the 2020 and 2019 April and May bills.  The sum of the 2 months’ consumption compared year on year, showed that the trend of her electricity consumption is approximately the same.  This comparative analysis is to show that it is possible for Ms. Pijuan to reach the electricity consumption and bill in question.  It was the under-estimation of the kWh consumption rendered for the April bill that was carried over to the May bill when an actual meter reading was taken.    

The electric meter being the fundamental instrument by which we derive the kWh consumption and for the bill to be computed, we would like to show in good faith and transparency the accuracy of the meter by conducting a meter test.  We have also reached out several times to explain and have paid attention to Ms. Pijuan’s concern.

At present, this case is being reviewed by the ERC and will await the due process to take its course.  We will respect the outcome and decision of ERC for this case.

Thank you very much for hearing our side on this.

Respectfully,
Margarita B. David.
Head, Home and Microbiz – Central Business Area
Meralco

Isuzu PHL, Pilipinas Shell extend partnership to 2023

IMAGE FROM ISUZU PHILIPPINES

Isuzu Philippines Corp. (IPC) recently forged a two-year agreement with Pilipinas Shell Petroleum Corp. (PSPC) — a partnership that ultimately “signifies a joint commitment to help Filipinos safely adapt to the new normal on and off the road.”

In a release, IPC President Hajime Koso said, “We are very pleased to again be working side by side with Pilipinas Shell in fulfilling our mission to become responsible partners in service of Filipino motorists. At IPC, we value progressive thinking and engineering when it comes to our commercial and light commercial vehicles, so we are glad to be working closely with them who are considered industry pioneers when it comes to sustainability and modernization.”

For his part, PSPC Vice-President and General Manager for Mobility Randy Del Valle said, “With the renewal of the partnership of IPC and Shell that has started since 2018, we would be able to continue to give value to new Isuzu drivers by providing access to quality fuels, lubricants and convenience retail items through the Shell Go+ Platform. We believe that this partnership is mutually beneficial for both Shell and IPC as both are in the forefront of innovation in their respective fields.”

In the past, the two brands have staged co-branded events such as the Isuzu 4×4 Xtreme Xperience, Isuzu Eco Run and Isuzu caravan displays at select Shell outlets. New initiatives on mobility and technology will take place once the situation permits.

Every buyer of a brand-new Isuzu vehicle or truck gets a “welcome kit” with a Shell Go+ card with an initial balance of P500. This enables customers to be part of a loyalty program, and earn and redeem reward points in fuels, convenience retail products at Select/Deli2Go, and lubricants. Members may also avail of 24/7 free roadside assistance by Ibero Asistencia, and 10% off on Motolite batteries.

Style (06/07/21)

UNIQLO collaborates with print designer Cassie Byrnes

GLOBAL apparel retailer UNIQLO will launch a collection with Cassie Byrnes on June 7. This will be the first collaboration with the Australia-based print designer known for her abstract exploration of native flora and fauna in vivid primary colors. Ms. Byrnes’ artworks begin with traditional media such as collage, paint and loose ink mark making before blending it with digital practices that amplify the artworks’ original integrity and handwriting. This UT collection features brand-new patterns specially designed for UNIQLO as well as her signature patterns, applying them on to women’s T-shirts and shorts. The range also features girl’s dresses, making it easy to coordinate looks between mothers and daughters. The collection, full of vivid and dynamic prints, will be available in all UNIQLO stores nationwide and from UNIQLO.com/ph.

Michael Kors releases Pride collection

MICHAEL Kors has released the #MKPride capsule features a range of rainbow-adorned women’s, men’s, and gender-neutral pieces. There are shorts and sweatshirts with rainbow heart patches, along with accessories and outerwear in an all-over rainbow striped design. The capsule also includes a special-edition Pride T-shirt, available in both white and heather gray, featuring a distinctive rainbow Michael Kors logo patch. All profits from the sale of the special-edition T-shirt benefit OutRight Action International, a leading global human rights organization fighting for the rights of LGBTIQ+ people around the world. The collection is being pushed through Michael Kors’ Pride 2021 campaign, created in partnership with Paper. The digitally led campaign stars four queer TikTok content creators wearing pieces from the brand’s #MKPride capsule. In the campaign, LGBTQ+ TikTok stars Tyshon Lawrence, Ve’ondre Mitchell, Mad Tsai and Soph Mosca show us their take on the popular transformation videos that have taken over social media, using the #MKPride product capsule as a catalyst for their “glow up” transformations.  In the Philippines, Michael Kors is exclusively distributed by Stores Specialists, Inc., and is located at Central Square in Bonifacio High Street Central, Greenbelt 5, Newport Mall, Power Plant Mall, Rustan’s Makati, and Shangri-La Plaza Mall and online at Trunc.ph and Rustans.com.

harlan + holden launches ‘Therapy’ collection

HOMEGROWN clothing brand harlan + holden is introducing a new collection to reflect the way we want to dress today. Now headquartered in Seoul, South Korea and with over 20 retail stores across Asia, harlan + holden has launched its newest capsule collection “Therapy” designed for work-from-home individuals and go-getters, designed by Alessandra Facchinetti, Fashion Designer & Creative Director of harlan + holden.The collection includes Therapy shoes, available in four colorways for men and women (black, dark green, white, and nude), which balances its form between leisure activities. Lightness, breathability, and versatility define it as much as the stamped “Therapy” logo does on its sole. The insole is made from double-layer Therapy Lite memory foam for extra comfort all day. The same approach and philosophy is what built the men’s and women’s capsule collection. With the past year defining a new way of living in, rather than out, and our homes becoming both intimate and professional spaces, our desire for clothes that are comfortable, hardworking and distinctive only grows. One step dressing is a key promise of harlan + holden, and with new elasticated details on everything from T-shirts, dresses, shorts, trouser waists, and jacket back panels. New short sleeve shirts double up as light cover-ups and are versatile for any kind of day. The men’s collection has a mix between leisurewear and new uniform separates, with bermuda shorts a key style which add much comfort and freedom of movement as wanted. For women, the Crop Cuts Tank cotton bra, elastic waisted shorts and stretch viscose leggings are three key pieces easy to mix into existing wardrobes, versatile in their layering qualities as well as offering a sporty attitude. The Crop Cuts Tank, made from crisp cotton poplin for a light but structured silhouette, features a flattering scoop neckline and exposed cut details. A perfect match for the Crop Cuts Tank is either a pair of Wide Poplin Shorts or a Poplin Kilt Skirt that is ultra-comfy from hip to hem. Calm tones of baby blues, dusty pinks, soft yellow, mint green, and cappuccino nudes keep the collection fresh and airy, perfect for relaxing in or giving a feeling of dressing up for an intimate dinner or the next Zoom meeting. Light cottons, a key fabric for the collection, keep the collection seasonless and globally relevant. For more information, visit harlan + holden’s website and Instagram account at https://harlanholden.ph/ and https://www.instagram.com/harlanholden/.

UNIQLO reopens Evia Lifestyle Center branch

JAPANESE global apparel retailer, UNIQLO, will be re-opening a bigger and brand new store at the Evia Lifestyle Center on June 18. The new store will increase its selling space from 600 square meters to 1,878 square meters. The expansion means shoppers can now select from the complete LifeWear collection for men, women, and kids and babies. The store is located at the ground level of the Evia Lifestyle Center, along Daang Hari Road in Las Pinas, Metro Manila. To celebrate the re-opening, the following special offers will be available during opening week: Men’s and Women’s DRY-EX Crew Neck Short Sleeve T-Shirt for P590 from the regular price of P790; Men’s and Women’s U Crew Neck Short Sleeve T-Shirt for P390 from P590; Women’s Cotton Relax Ankle Pants for P590 from P790; Ultra Stretch Skinny Fit Color Jeans for P990 from P1,490; and Kids’ Easy Shorts for P390 from P590. UNIQLO will also treat Evia shoppers with one special edition thermal flask for every single-receipt purchase, with a minimum spend of P3,000. Customers will also receive one coupon with special offers from community partners, including Coffee Project, Fully Booked, All Bikes, Green Centrale and Bonjour Baby. The purchase must be made from June 18 to June 20.

More deforestation, less rain threaten Brazil agribusiness

REUTERS

BRASILIA — Brazilian agribusiness is losing up to $1 billion a year as rising deforestation cuts rainfall in the southern Amazon — a problem set to expand if forest loss continues, a group of Brazilian and German researchers have warned.

In a study published in the journal Nature Communications in May, they found that smaller-scale forest losses can enhance rainfall on adjoining agricultural land — but once losses pass 55-60%, rainfall plunges.

Losses of tree cover in particular seem to delay the start and shorten the length of the rainy season, they found.

As Brazilian Amazon forest destruction continues, drier conditions could put a massive strain on the region’s mainly rainfed agricultural industry, the authors said.

Brazil is the world’s top soybean producer, and its second largest producer of beef, as well as the globe’s biggest beef exporter.

In parts of the country, Brazil’s farmers are already battling unusually dry weather this year, with government agencies warning in late May of drought threats as the country faces its worst dry spell in 91 years.

In the southern Amazonian state of Mato Grosso, Brazil’s main soy producer, irregular rainfall is reducing potential harvests, according to the Mato Grosso Institute of Agricultural Economics.

Aprosoja Brasil, the country’s main soy production association, similarly said farmers faced drought while planting last October and November, followed by excessively heavy rain at harvest time this year, lowering the expected harvest.

The new study looked at rainfall changes between 1999 and 2019 in the southern Brazilian Amazon, a 1.9 million sq. km. area that has so far lost about a third of its forests, as a model for future rainfall shifts.

Researchers predicted what might happen through 2050 under continued weakening of Brazil’s conservation policies and strong political support for agricultural expansion compared to effective enforcement of forest protection laws.

Co-author Britaldo Soares told the Thomson Reuters Foundation that the difference was stark.

Unless Brazil’s government quickly shifts its pro-development policies, which favor economic growth over conservation, agribusinesses could become victims of the measures many of them support.

The effect would be like “shooting yourself in the foot,” said Soares, who is project coordinator for the Centre for Remote Sensing at the Federal University of Minas Gerais (UFMG).

Environmentalists say President Jair Bolsonaro’s policies have weakened conservation efforts and his rhetoric has emboldened illegal ranchers, loggers and land speculators to cut down the Amazon forest to expand their business.

Bolsonaro’s office did not respond to a request for comment.

MORE FOREST LOSS
Amazon forest losses have soared to a 12-year high since Bolsonaro took office in 2019, with deforestation rising 43% in April compared to the same month a year ago, according to government data published in May.

Removing trees to plant crops and raise cattle reduces the forest’s ability to trap and store planet-heating carbon dioxide in the atmosphere, and can contribute to emissions if forests are burned.

But more fragmented forest, as losses grow, also is less able to produce the same volume of water vapor that rises to become rain, and can make the forest drier and more vulnerable to burning.

Less rainfall can mean lower yields and force farmers in the southern Amazon and beyond to adapt by moving to new areas or growing more drought-resistant crops, the study noted.

It did not discuss prospects for irrigating crops in the region.

Farmers in the Amazon also commonly profit from double-cropping, or growing at least two crops per year.

But that could become more difficult or impossible if continuing tree losses cause rainy seasons to become delayed and shorter, the study noted.

Researchers said that if Brazil’s government fails to act against deforestation, international responses — including potential sanctions and exclusion of Brazil from international treaties — could also result in lost revenue for Brazil’s farm-related businesses.

Stopping forest loss in the Amazon is vital not only to protect biodiversity and the global climate but to protect agribusiness itself, they said.

NEW MODEL?
As part of their study, the researchers used mathematical modeling to predict the economic losses that southern Amazonian agribusiness is expected to suffer if current policies continue and rainfall in the Amazon keeps dropping.

By 2050, the beef industry could lose more than $180 billion and the soy industry up to $5.6 billion in total due to the effects of decreased rainfall, the study found.

Soares said for long-term economic prosperity the Amazon region needed to find a more sustainable economic model not reliant on land-hungry commodities such as soy and beef whose expansion were leading to major forest loss.

A study he and other researchers carried out in 2018 found landowners could potentially earn more than $700 per hectare each year in international payments to keep climate-stabilizing forests standing as well as by created processed products from forest species such as Brazil nuts.

Cattle ranching on deforested land, by comparison, earns a landowner about $40 per hectare each year, it noted.

Brazil also needs better enforcement of its forest protection laws to preserve conservation zones and indigenous territories, he said.

As well, other nations need to put more pressure on the current Brazilian government to boost forest conservation, said Paulo Barreto, a researcher who has studied the Amazon for three decades and works at the nonprofit research institute Imazon.

That should include “immediate and concrete measures” such as refusing to purchase beef, soy or other products from deforested land, he said.

Argemiro Teixeira, one of the study’s co-authors and an environmental systems modeler, said profitable agriculture and forest protection in the Amazon did not have to be at odds.

Agribusiness can be profitable without continued expansion at the expense of the forest, he noted, calling it “possible and necessary to improve the industry while preserving the environment.” — Thomson Reuters Foundation

Food, Beverages, and Transport Chip in the Most to Inflation (Recreational Activities Still Negative)

Food, Beverages, and Transport Chip in the most to Inflation (Recreational Activities Still Negative)

How PSEi member stocks performed — June 4, 2021

Here’s a quick glance at how PSEi stocks fared on Friday, June 4, 2021.


Peso may rise further as government continues COVID-19 vaccine rollout

BW FILE PHOTO

THE PESO could rise further versus the dollar this week as the government continues its coronavirus disease 2019 (COVID-19) vaccine rollout and as cases in Metro Manila showed a declining trend.

The local unit closed at P47.75 per dollar on Friday, gaining 7.5 centavos from its P47.825 finish on Thursday, based on data from the Bankers Association of the Philippines.

The local unit also strengthened by five centavos from its P47.80-per-dollar close on May 28.

Data showing steady inflation in May boosted the peso on Friday, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Headline inflation was steady for the third straight month at 4.5% in May, the Philippine Statistics Authority reported on Friday, matching market expectations.

The figure was within the 4-4.8% estimate by the BSP for that month and also matched the median estimate in a BusinessWorld poll.

Year to date, inflation was 4.4%, higher than the 2-4% target of the central bank and its revised forecast of 3.9% for the year. May was the fifth month in a row that inflation went beyond target.

Meanwhile, a trader said the elevated global oil prices also affected peso-dollar trading last week.

For this week, Mr. Ricafort said the market will watch out for the release of April unemployment data on Tuesday, as well as trade data due to come out on Wednesday.

He added that the declining trend in new COVID-19 cases as well as progress in the government’s inoculation program could help drive market sentiment this week.

The Health department reported 6,955 new coronavirus cases on Saturday, which brought the country’s tally to over 1.26 million.

The department Mindanao accounted for 25% of the new cases reported last week.

Meanwhile, the trader said the market could take its cue from the US jobs data released last week, which was weaker than expected.

The dollar fell on Friday after US nonfarm payrolls data showed hiring increased in May as the pandemic eased, but not as much as expected, tempering expectations the Federal Reserve will tighten monetary policy sooner, rather than later, Reuters reported.

Nonfarm payrolls increased by a solid 559,000 jobs last month, helped by higher COVID-19 vaccination rates, but that was below the consensus forecast for 650,000 jobs added in May.

The softer-than-expected report means there is no urgency for the Fed to begin tapering its monthly purchase of $120 billion in bonds to support the economy.

At 3 p.m. ET on Friday, the dollar index was down 0.38% at 90.135, dropping from a three-week high earlier in the session.

The dollar had rallied on Thursday, notching up its biggest daily gain in a month, after weekly US jobless claims fell below 400,000 for the first time since the pandemic started more than a year ago and private payrolls increased by significantly more than expected.

For this week, Mr. Ricafort gave a forecast range of P47.90 to P48 per dollar, while the trader expects the local unit to move within the P47.70 to P48 levels. — IBC with Reuters

Stocks to move sideways on steady May inflation

PHILIPPINE STAR/KRIZ JOHN ROSALES

PHILIPPINE shares are expected to trade within a narrow range this week with an upward bias following the release of May inflation data, which showed that the average rise in prices was steady for a third straight month.

The Philippine Stock Exchange index (PSEi) went up by 4.47 points or 0.06% to close at 6,796.34 on Friday, while the broader all shares index increased by 4.57 points or 0.11% to 4,108.59.

Week on week, the benchmark index gained 121.83 points from its 6,674.51 finish on May 28.

“It’s been a sharp rally for the [last] this week that took off from a much oversold level, highlighting tactical opportunities for investors,” First Metro Investment Corp. (FMIC) Head of Research Cristina S. Ulang said in a Viber message on Friday.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort attributed the market’s gains last week to the progress on economic reform bills at the House of Representatives.

“Markets have already been pricing in developments/expectations related to the 2022 presidential elections (if this would create new excitement),” Mr. Ricafort said in an e-mail on Friday.

For this week, the analysts said the PSE index will move sideways due to May inflation data as ahead of the release of other economic reports, which, along with developments in the coronavirus disease 2019 (COVID-19) situation in the country, could dictate the pace of the economy’s reopening.

“[This] week, the PSEi will trade at a narrow range with an upward bias, propped by supportive inflation and dovish talk by the BSP (Bangko Sentral ng Pilipinas) governor,” FMIC’s Ms. Ulang said.

Inflation was steady for the third straight month at 4.5% in May, the Philippine Statistics Authority reported on Friday, matching market expectations.

The figure was within the 4-4.8% estimate by the BSP for that month and also matched the median estimate in a BusinessWorld poll.

Year to date, inflation was 4.4%, higher than the 2-4% target of the central bank and its revised forecast of 3.9% for the year. May was the fifth month in a row that inflation went beyond target.

“The BSP remains watchful over the evolving economic conditions and challenges brought about by the pandemic to ensure that the monetary policy stance remains consistent with its price and financial stability objectives,” BSP Governor Benjamin E. Diokno said in a statement on Friday.

Meanwhile, RCBC’s Mr. Ricafort said he expects the index to close between 6,300 to 6,900 this week ahead of the release of trade and unemployment data. Investors will also watch out for COVID-19 developments, particularly the trend in cases as well as the continued rollout of vaccines, he added.

“The expected increase in COVID-19 vaccine arrivals… could help further reduce new COVID-19 cases in a more meaningful manner, justify further reopening of the economy, including some hard-hit industries/sectors, thereby improve confidence by consumers and businesses, and provide greater support to the overall economic recovery prospects,” Mr. Ricafort said. — KCGV

1M more CoronaVac doses arrive from China

@PNAGOVPH

A MILLION more doses of CoronaVac from China arrived in Manila on Sunday, in a boost to the government’s vaccination drive.

The vaccines would be given out in areas experiencing a fresh surge in coronavirus infections including Metro Manila, Zamboanga, Cagayan de Oro, Butuan and provinces in Western Visayas, vaccine czar Carlito G. Galvez, Jr. told reporters on Sunday.

This brought the total CoronaVac doses made by Sinovac Biotech Ltd. that have arrived to 6.5 million, including a million doses donated by the Chinese government, the task force tweeted.

Sunday’s shipment is the first shipment of CoronaVac shots that arrived in the country after the World Health Organization (WHO) included the vaccine in its list of drugs approved for emergency use.

The WHO validated CoronaVac for emergency use after reviewing the latest clinical data on the vaccine’s safety as well as the company’s manufacturing practice.

It said the vaccine prevented symptomatic disease in 51% of those vaccinated and prevented severe COVID-19 and hospitalization in 100% of the studied population.

A WHO emergency listing allows CoronaVac to be distributed under a global initiative for equal access.

China has approved the emergency use of CoronaVac by people aged three to 17 years, Reuters reported at the weekend, citing Sinovac chairman Yin Weidong.

China had given out more than 720 million doses of vaccines to people aged 18 and above as of June 3.

Preliminary results from Phase I and II clinical trials showed the vaccine could trigger immune response in three to 17 year-old participants, and most adverse reactions were mild, Reuters said.

The presidential palace earlier said the WHO approval would boost vaccine confidence in the Philippines.

The Department of Health (DoH) reported 7,228 coronavirus infections on Sunday, bringing the total to 1.27 million.

The death toll rose by 166 to 21,898, while recoveries increased by 7,372 to 1.19 million, it said in a bulletin.

There were 59,337 active cases, 1.3% of which were critical, 93.5% were mild, 2.4% did not show symptoms, 1.7% were severe and 1.15% were moderate.

It said 23 duplicates had been removed from the tally, 18 of which were tagged as recoveries. A total of 109 recoveries were reclassified as deaths. Three laboratories failed to submit data on June 4, the agency said.

About 12.8 million Filipinos have been tested for the coronavirus as of June 4, according to DoH’s tracker website.

The coronavirus has sickened about 173.7 million and killed 3.7 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.

About 156.6 million people have recovered, it said. The government is expected to take delivery of about 10 million vaccine doses from different brands this month. 

Last week, it took delivery of about 50,000 more doses of Sputnik V coronavirus vaccines from Russia on Sunday night, bringing the total to 80,000 shots.

The palace earlier said about 1.3 million doses of the vaccine made by Pfizer, Inc. and 900,000 doses of the shot made by AstraZeneca Plc would arrive by the second week of June.

The government is expecting about 200,000 doses of the vaccine made by Moderna, Inc.

About 5.38 million vaccines have been given out as of June 2. About 1.29 million people have completed their doses.

Meanwhile, foreign retirees with a special resident retiree’s visa may now enter the Philippines without an entry exemption document, according to the Immigration bureau. In a statement on Sunday, Immigration Commissioner Jaime H. Morente said the new rule is pursuant to an inter-agency task force order as recommended by the Tourism department.

He said those holding tourist visas must first get an entry exemption document from the Philippines’ foreign service posts overseas before they can enter the country.

A special resident retiree’s visa is given to foreign nationals who would like to make the Philippines their second home or investment destination, according to the Philippine Retirement Authority’s website.

The body is attached to the Department of Tourism and is in-charge of issuing such visas.

Immigration Port Operations Division chief Carlos B. Capulong said passengers arriving in the country must still present their 10-day quarantine hotel or facility booking, or a seven-day booking for those who have been fully vaccinated.

He added that passengers coming from seven countries with travel bans — India, Pakistan, Nepal, Sri Lanka, Bangladesh, Oman and the United Arab Emirates — are barred from entering the Philippines until June 15. — Kyle Aristophere T. Atienza and Bianca Angelica D. Añago

Political opposition told to consolidate to defeat ruling party

By Kyle Aristophere T. Atienza, Reporter

THE POLITICAL opposition should set aside their differences and welcome traditional politicians opposed to the ruling administration to defeat the latter’s bets in the 2022 elections, analysts said.

The opposition camp should embrace politicians who had “supported the Duterte administration but now realized that it is not worth supporting anymore,” said Antonio P. Contreras, a political science professor at the De La Salle University.

All critics of the administration are potential allies of formal opposition, he said by telephone. “The real agenda right now should be how to stop the Duterte administration.”

“There are people who switch alliances for principles,” Mr. Contreras said. “Unlike political butterflies who just go where the money is, politicians who want to enter into new alliances are people who have realized that they made the wrong decision before.”

“The problem in the opposition is that they are so idealistic and purist, so holier than thou that they box themselves in this very purist construct,” he said.

The newly formed opposition coalition 1Sambayan, which is composed by conservative, centrist, and progressive groups and individuals, is set to announce on June 12 its nominees for president and vice president.

The former ruling party should admit its failures in the previous years to avoid more political losses, said Dennis C. Coronacion, who heads the University of Santo Tomas Political Science Department.

“The political narrative of the Liberal party has been repudiated,” he said by telephone. “Their EDSA brand of democracy has been repudiated.”

“That’s partly because people have seen that the EDSA democracy is just the restoration of the elitist brand of democracy,” he said, citing Mr. Duterte’s hold on the popular imagination.

Mr. Coronacion said the opposition must recruit or tap leaders who have become popular because of their performance amid the coronavirus pandemic.

He cited two local chiefs in the capital region who, on several occasions, have criticized the government’s pandemic response.

“The Liberal Party may have failed in the sense that when it was in power, it did not push enough reforms that would have strengthened parties, including itself, and democratic elections,” said Maria Ela L. Atienza, a political science professor from the University of the Philippines.

As long as Philippine politics “remains personality-oriented and there are no laws punishing turncoats and favoring strong party programs over candidates and personalities, it will be difficult to focus so much on parties,” she said in an e-mail.

“If the opposition, and we are not talking just about the Liberal Party as it has few members now and there is a broad array of opposition groups with different ideological backgrounds, wants to win in 2022, they have to come up with a much broader coalition that will offer alternatives to people,” Ms. Atienza said.

While it is important for progressive sectors to enter into coalitions, there should be basic agreements about what principles and programs should be prioritized and cannot be sacrificed, she added.

“Otherwise, we might have a repeat of the anti-Marcos and anti-Erap coalitions composed of both some factions in the progressive sector plus elites, traditional politicians and other politicians,” she said. “These coalitions implode once in power and the elites are usually the ones that remain.”

Ramon C. Casiple, executive director of the Institute For Political and Electoral Reform, said the opposition might still win in the polls even if its ranks are divided.

“That would still depend on the actual strength of the candidates and the opposition,” he said by telephone. “The logic here is that you will have more chances of winning if you are more united.”

He cited the 2016 elections that Mr. Duterte won. “We have a long-standing experience that it’s difficult for a successor of a sitting administration to win.”

“The opposition should veer away from the anti-Duterte rhetoric,” said Michael Henry Ll. Yusingco, a lawyer and research fellow at the Ateneo de Manila University Policy Center.

It should have a “disciplined and laser-focused campaign” and there is “no room for silly grandstanding gimmicks,” he said in an email.

Mr. Yusingco said the opposition slate should unite behind a platform that embodies a post-pandemic recovery plan that should be “viable and coherent.”

“No room for slogans, soundbytes or pro-forma ideas. The challenge for them is how to communicate this clearly to the electorate,” he said.

Mr. Yusingco said the political message should “involve overhauling our public health system, instituting mechanisms to address climate change and establishing a blue economy.”

The opposition should focus on the Duterte administration’s human rights record and how it handled the sea dispute with China and the coronavirus pandemic, Ms. Atienza said.

“The opposition should focus on people’s righteous anger regarding poor pandemic response and the economic problems faced by a lot of people. But they should offer clear alternatives and long-term solutions, she added.

MinDA opposes Agus-Pulangi hydropower privatization

PSALM.GOV.PH

THE MINDANAO Development Authority (MinDA) has taken a stand against the privatization of the Agus-Pulangi Hydropower Complex, a major green energy source that is due for rehabilitation that could cost up to P20 billion.

In a statement on Sunday, Secretary Emmanuel F. Piñol said MinDA is putting forward a “policy push to keep the ownership and control of the state-owned Agus-Pulangi Hydroelectric Complex.”

“MinDA’s position is against the privatization of Agus-Pulangi Hydroelectric Complex, which is deemed best left in the hands of the government but defining its role in an era of market competition,” said Mr. Piñol who chairs the agency.

The Wholesale Electricity Spot Market, which has been operating for over a decade in Luzon and the Visayas, is scheduled to open in Mindanao on June 26. “We need these assets to not just tame future supply volatilities but also continue fulfilling its obligation to serve especially the marginalized areas,” he said.

Mr. Piñol issued the statement following the recent Mindanao Power Forum and last week’s power supply problems in the northern mainland Luzon.

The Mindanao-Visayas interconnection project, which will integrate the Mindanao supply into the national grid, is expected to be completed within the year.

“While our power supply is considered to be stable, we continue to pursue measures and approaches to support (the) expected rise in the demand for power while keeping energy rates cost-effective as the economy recovers from the pandemic, and industries reset operations to pre-COVID levels,” he said.

The World Bank is funding a feasibility study on the rehabilitation of Agus-Pulangi complex, which is composed of seven hydroelectric plants with a combined capacity of 1,001 megawatts (MW). It is currently operating with an output of less than half its capacity.

Rey S. Polestico, the National Power Corp.’s (NPC) focal person on the Agus-Pulangi rehabilitation, said the preparatory study is “nearly completed.”

The rehabilitation cost, he said, is estimated between P12.5 to P20 billion.

It is eyed for financing through either official development assistance or a multilateral funding source initiated by World Bank.

Mr. Polestico also reported during the Mindanao Power Forum that the World Bank has already approved the grant to finance the feasibility study and is awaiting Special Presidential Authority for the fund.

The hydropower complex is owned by the government through the Power Sector Assets and Liabilities Management Corp. (PSALM) and operated by NPC.

It is mandated for privatization under Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA), which was passed in 2001.

The clean energy facility used to be Mindanao’s main power source. The southern islands’ energy mix has now tilted towards fossil fuel, with coal and oil-based plants accounting for 67% of supply. — Marifi S. Jara