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UAAP S84 adds COVID-19 reserve list for basketball

THE University Athletic Association of the Philippines (UAAP) has added a coronavirus disease 2019 (COVID-19) reserve list to the original men’s basketball rosters as part of its contingency plan in assuring the success of its anticipated return for Season 84.

UAAP president Emmanuel “Nonong” Calanog of De La Salle University said at least four players in the special reserve list are available to activate aside from the 16-man roster when the league returns on March 26.

“One of the things we added into the mix is the roster expansion,” Mr. Calanog said in Noli Eala’s Power and Play program on Radyo Singko over the weekend.

“Just in case, teams can tap any of those COVID reserves to replace players, but only for COVID reasons, not for injuries,” he added.

The UAAP is actually mounting a full bubble at a still undetermined venue, but still plotted a backup plan for the ultimate goal of finishing the tournament — safely and smoothly.

“Our main objective is to make sure that we’re able to start and run the tournament without adding any variables so that we can play continuously,” Mr. Calanog added.

As bubble protocols, the UAAP will not allow fans at least for the first round of the men’s basketball tilt with an option of opening doors down the road.

After men’s basketball, the UAAP will stage women’s volleyball in May for a much-awaited return after two years of hiatus due to the pandemic. — John Bryan Ulanday

Eternal Plans aims to quickly address financial difficulties

ETERNAL Plans, Inc. said that it expects to address its financial difficulties in a “short period” after the regulatory body placed the company under a conservatorship for failing to plug a cash deficiency in its trust fund.

The company said its financial troubles are twofold: benefits payouts are still exceeding estimates as education tuition fees surge.

At the same time, the industry has been experiencing decades of weak investment portfolio returns.

“Pre-need plans sold before the passage of the Pre-Need Code of the Philippines, dubbed as ‘old basket of plans’ have double-digit growth rates that current investment portfolio cannot sustain,” Eternal Plans said in an e-mailed statement on Friday.

“To address the fund shortage, pre-need plan companies have to contribute yearly to fill the gap. This out-of-pocket contribution adversely affected all pre-need plan companies, causing a lot of them to fold.”

The company said that the coronavirus pandemic worsened the industry’s problems, especially amid company closures and low investments.

“We have the resources, and we want to maximize earnings on alternative investments because traditional investments are not earning and even in some cases at a loss,” Eternal Plans, Inc. President Elmer M. Lorica said.

Insurance Commissioner Dennis B. Funa placed the company under conservatorship on Jan. 20 due to the company’s “unwillingness to comply” with the orders of the regulator.

The Insurance Commission, in a letter to Eternal Plans in November 2021, directed the company to put cash into its trust fund to make up for the deficiency. The deadline was Dec. 28 after the company was granted an extension, the Department of Finance said on Thursday.

After the company failed to meet the deadline, Mr. Funa said it asked for a regulatory reprieve and for time to undergo rehabilitation.

“We find this request consistent with the regime of conservatorship. Hence, the case of the company falls under the conservatorship process under the Insurance Code,” he said.

Eternal Plans in its statement said it made a cash deposit of P200 million to its trust fund, telling the commission that it wanted a supervised rehabilitation.

“The company desires to address the remaining deposit balance and address in particular the issue of the asset-liability mismatch for the ‘old basket’ of plans.” it said.

“The company assures the planholders that we will come out stronger from these financial difficulties within a short period of time.”

According to the Pre-Need Code of the Philippines, a trust fund ensures guaranteed benefits and services under a pre-need plan contract. The code requires that certain percentages of insurance plans be deposited into the trust fund.

Conservators may be appointed to manage a pre-need company’s assets and liabilities, collect debts due, and make decisions that would preserve its assets and restore its viability. — Jenina P. Ibañez

Suzuki ‘Triple Deal’ features big price cuts on XL7, Dzire and Carry

PHOTO FROM SUZUKI PHILIPPINES, INC.

SUZUKI PHILIPPINES, INC. (SPH) recently announced its “Triple Deal” promo, which serves up low down payment schemes and big cash discounts on the Suzuki XL7, Suzuki Carry, and Suzuki Dzire.

“We at Suzuki always strive to ensure our devoted patrons experience the best level of service our brand has to offer,” said Suzuki Philippines Vice-President and General Manager for Automobile Keiichi Suzuki. “This includes finding ways to ensure greater reach and accessibility of our wide range of products and services to all Filipinos.”

The Suzuki XL7 three-row mover is now available with an affordably low down payment of P120,000 and discount of P65,000. Any variant of the Carry workhorse, on the other hand, can be driven off with a low down payment of P82,000 and discount of P23,000 — on top of a free three-year PMS program.

Lastly, the Dzire, Suzuki’s original subcompact (and easy-to-maintain) sedan, is being sold for as low as P39,000 down payment and discount of up to P60,000.

For more information, visit any of the 71 authorized Suzuki Auto dealerships nationwide or http://suzuki.com.ph/auto/. For daily updates on Suzuki, like the company’s Facebook page at https://www.facebook.com/SuzukiAutoPh, and follow on twitter at https://twitter.com/SuzukiAutoPh and Instagram (@suzukiautoph).

Government debt yields end mixed

YIELDS on government securities (GS) were mixed last week as investors recalibrated their positions following the government’s rejection of bids for its offer of three-year bonds.

GS yields in the secondary market fell by a week-on-week average of 7.38 basis points (bps), based on the PHP Bloomberg Valuation (BVAL) Service Reference Rates as of March 4 published on the Philippine Dealing System’s website.

Yields, which move opposite to prices, were mixed on Friday from their Feb. 24 close. Rates of the short-dated 91-, 182-, 364-day Treasury bills (T-bills) went up by 19.62 bps, 8.54 bps, 4.9 bps to 1.1685%, 1.2493%, and 1.5943%, respectively.

At the belly of the curve, yields on the three-, four-, five-, and seven-year Treasury bonds (T-bonds) decreased by 7.13 bps, 16.36 bps, 20.07 bps and 12 bps to 3.6822%, 4.1968%, 4.6157% and 5.1329%, respectively.

On the other hand, the rate of the two-year papers increased by 3.89 bps to 3.0955%.

At the long end, rates of the 10-, 20-, and 25-year bonds dropped by 11.22 bps (to 5.3%), 24.42 bps (5.4496%) and 26.88 bps (5.4304%), respectively.

A bond trader said yields were lower after the Treasury rejected the offers for its three-year debt last week.

“The three- to four-year space were lower [last week] as investors tried to reinstate their position originally intended for the three-year [bond] auction,” the trader said in a Viber message.

Two-year papers and below were sold off last week in favor of the three-year debt and longer for yield pickup, the bond trader said.

“Following BTr’s rejection of their three-year auction, market turned better buyer especially in the three- to four-year space,” First Metro Asset Management, Inc. (FAMI) said in an e-mail interview.

“We also noticed bidding interest up to the seven-year space ahead of the scheduled auction this week and February inflation print release where consensus estimates stood at 3.2%,” FAMI said.

On Tuesday, the Treasury rejected all bids for its offer of fresh three-year T-bonds even as demand reached P45.26 billion, 29.3% higher than the P35 billion on the auction block, as traders asked for higher yields amid the ongoing crisis between Russia and Ukraine.

Had the offer been fully awarded, the three-year papers (FXTN 03-26) would have fetched a coupon rate of 4.375%, above the 3.7984% quoted for the notes before the auction.

Meanwhile, inflation stood at 3% year on year in February, the Philippine Statistics Authority reported on Friday. This matched the January print but was slower than 4.2% in February last year.

This was also lower than the 3.3% median estimate in a BusinessWorld poll but within the 2.8-3.6% forecast range by the Bangko Sentral ng Pilipinas.

For this week, the bond trader expects players to be on edge due to the inflation impact of the ongoing war between Russia and Ukraine.

“It is also a week away from FOMC (Federal Open Market Committee) where US Fed’s [Jerome H.] Powell already saying that he will propose 25-bp hike and could also be more especially if next week’s US CPI (consumer price index) data will show higher-than-expected print,” the bond trader said.

Mr. Powell last week said they will be slowly raising interest rates to balance high US inflation, Reuters reported.

However, the Fed’s plan of raising the target overnight federal funds rate and lower the size of its balance sheet to control inflation remain. The next scheduled Fed meeting is on March 15 to 16.

For FAMI, it sees yields moving with an upward bias this week amid debt supply pressures following the recent retail Treasury bond (RTB) issuance as well as the surging oil prices that could cause domestic inflation to spike.

“Moreover, the easing of mobility restrictions starting this month may lead to faster economic recovery and soon suggest tighter monetary policy,” FAMI said.

BDO Unibank, Inc. Chief Market Strategist Jonathan L. Ravelas said in a Viber message that he continues to expect yields to move sideways in the near term. — Ana Olivia A. Tirona with Reuters

Poor earnings blamed for destructive fishing practices 

PHILSTAR

By Luisa Maria Jacinta C. Jocson

FISHING PRACTICES that damage the environment are a warning that coastal communities require a sustainable source of livelihood, which the government needs to invest in instead of penalizing such practices, according to the founder of an investment fund that provides capital to enterprises focused on poverty alleviation.

“Simply penalizing (fishermen) does not solve the problem completely since the root of the problem lies in… being unable to make a decent living. I refuse to believe in the idea that the Filipino fishermen are lazy. They’re not. They’re just trying to make a decent living,” Ignite Impact Fund Founder Maria Antonia G. Arroyo said in a virtual interview.

“There is a need to invest in things like mariculture and for the private sector to step in, since we often talk about how expensive it is to do this. However, there are a lot of deeply valuable assets in the Philippines. For example, mariculture is a great opportunity so that more jobs can be created in coastal communities… in the most environmentally sustainable way possible, so you certainly need cooperation (with) local governments,” she added.

Ms. Arroyo said that the implementation of Fisheries Management Areas (FMAs) is a “step in the right direction” by helping local government units manage illegal fishing.

“FMAs address the four kinds of illegal fishing:  dynamite fishing, cyanide fishing, the use of ‘hulbot hulbot’ (destructive fishing gear built with nets connected to sinkers), and commercial fishing vessels in municipal waters,” she said.

“Due to commercial fishing vessels occupying municipal waters, (fishermen) resort to dynamite fishing to earn more as it is very effective for collecting fish at a fast rate but ultimately harmful to the environment,” she added.

She said the industry suffers annual losses of P1.8 billion from illegal and unreported fishing.

“Seventy percent of the waters are overfished, which is really terrible, as 60% of Filipinos live in coastal areas. Fishing is a big thing in terms of policy implementation,” Ms. Arroyo said.

“Dynamite fishing and other illegal forms of fishing are a result of desperation, lack of moderation, appropriate technology, boats, nets, and a lack of conservation and investment,” she said.

Ignite Impact Fund supports “companies with good business models for coastal communities. What we like to do is find companies that are already willing to work with nongovernmental organizations (NGOs) who already have communities with small-scale fishers,” Ms. Arroyo said.

“You’re actually providing management skills and leaving the community to do what they do best, which is farm or to fish,” she added.

The fund has invested in Plentina, a fintech that provides “buy now, pay later” store credit with major retailers for essentials and builds a credit score for the user; and BioPrime, a maker of organic soil conditioner that increases crop yield and decreases inorganic fertilizer use by 50%.

One of the sustainable solutions the fund is looking into is coral farming, which could be another source of livelihood for fishing communities.

“Everywhere around the world there are corals that need to be reforested and there is a $1.5 billion market for sustainable coral for aquariums. Farming coral is very easy and all you have to do is not to touch it.  You can use microfiber fragmentation to make the coral grow 50 times faster and you can grow them on shore so that you will have consistent Ph and water temperature. Seventy percent of the coral can be used to revitalize the reefs and 30% can be sold to the aquarium market and then you have an extra market for the fisherfolk,” she said.

For other small-scale fishermen, the Ignite Impact fund is also looking at programs that provide them with backyard farms that can work on in the day. Much fishing activity takes place at night.

“For as low as P2,000 per family, you’re giving them food security so they don’t go hungry, and all the surplus they sell at local markets, so it’s building local markets and community services,” Ms. Arroyo said.

In terms of government aid, Ms. Arroyo said that investment is key to helping the sector flourish.

“Subsidies are never sustainable financially. What the government should be doing is reaching out. If they really want to help the farmers, then they need to (address) the demand side to get more people investing in mariculture and coastal communities,” she said.

“I really think that destructive or illegal fishing is the symptom and the cure is to get more investors. It’s really about better management and closer cooperation with the government in terms of getting people to invest,” she added.

Veteran Barnachea leads Excellent Noodles in LBC 2022 Ronda Pilipinas

SANTY BARNACHEA — THE PHILIPPINE STAR FILE PHOTO

AGELESS tour champion Santy Barnachea is postponing retirement for one more shot at cycling glory.

Mr. Barnachea has teamed up with fellow two-time LBC Ronda Pilipinas king Jan Paul Morales and will represent Excellent Noodles when the 11th edition of the annual cycling spectacle returns with a 10-stage race unfurling on Friday in Sorsogon and ending on March 20 in Baguio.

The 47-year-old Umingan, Pangasinan native announced his retirement two years ago, but changed his mind after he felt he still has something left in the tank.

“For me, he still has what it takes to win again and he isn’t a many-time champion for nothing,” said the 36-year-old Mr. Morales, a former Navy Standard team captain, of Mr. Barnachea, who will skipper Excellent Noodles.

Ryan Tugawin, Mervin Corpuz, Bonijoe Martin, Joshua Bonifacio and under-23 riders Mar Francis Sudario and Joshua Pascual will backstop the grizzled pair in their quest to rake in the lion share of the P3.5 million including the top purse worth P1 million for the individual champion and the P200,000 for the team crown.

Navy Standard Insurance, Philippine Army, Team Nueva Ecija, Dreyna, Eagle Cement, Champ Café, Bike Kings Laguna, Vantage Ilocos Norte, VPharma, Team Quezon Province, Team Ilocos Sur and Go for Gold are the other teams plunging into action.

The 10-day event is bankrolled by LBC Express, Inc., MVP Sports Foundation, Quad X, Twin Cycle Gear, Standard Insurance, Print2Go, Elves Bicycles, Elitewheels, Orome, Maynilad and Garmin, Petron, Boy Kanin, Green Planet Bikeshop, Prolite, Black Mamba, Lightwater and LBC Foundation and recognized by PhilCycling and Games and Amusements Board.

Ronda will open with a Stage One Individual Time Trial and Stage Two Team Time Trial on March 11 in Sorsogon followed by the 163-kilometer Sorsogon-Legazpi City Stage Three on March 12 and 189.1km Legazpi-Daet Stage Four on March 13.

It will be followed by the 212km Daet-Lucena Stage Five on March 14 and 157.4km Lucena-Tagaytay Stage Six on March 15.

After a one-day break, the race will wind up with the 180.4km Tarlac-Baler Stage Seven on March 17, 174.4km Baler-Echgue, Isabela Stage Eight on March 18, 193.2km Santiago, Isabela-Baguio Stage Nine on March 19 and Baguio City Stage 10 criterium on March 20. — Joey Villar

Tax court sides with car distributor in case vs BIR

THE Court of Tax Appeals (CTA) granted the appeal of an automobile distribution and wholesale company to set aside the deficiency excise tax of P141.1 million, which the Bureau of Internal Revenue (BIR) required the company to pay for the calendar years 2010, 2011, and 2012.

In a 15-page resolution released on March 2, the court’s third division said that the internal revenue commissioner failed to present a letter of authority and a revenue memorandum order to legally authorize a tax assessment on Formula Sports, Inc. (FSI).

The court cited the country’s tax code and defined a letter of authority as one “given to the appropriate revenue officer assigned to perform assessment functions and empowers said officer to examine the books of account and other accounting records of a taxpayer for the purpose of collecting the correct amount of tax.”

“The Commissioner of Internal Revenue, his representatives, agents, or any person acting on his behalf are enjoined from collecting or taking any further action on the subject deficiency taxes,” the ruling written by CTA Associate Justice Maria Rowena Modesto-San Pedro ordered.

The revenue officers found FSI liable for deficiency excise tax and value-added tax in the amount of P141.1 million in 2016. This was based on the purchase price of the imported vehicles declared by the company to be lower than the purchase price found in its authority to release imported goods.

The petitioner is a domestic corporation engaged in the wholesale and distribution of automobiles. It is also the sole importer and distributor of luxury sports car brand Maserati in the Philippines.

The respondent issued a mission order in 2014 to revenue officers directing them to inspect the automobile distribution company’s importation and sales accounts of automobiles from 2010 to 2012.

The tax court said that because the respondent failed to secure the letter of authority and revenue memorandum order, the assessment was considered void and that the previously issued mission order cannot replace the absent letter, or function in the same way.

“Clearly, there must be a grant of authority before any revenue officer can conduct an examination or assessment,” the court said in its ruling. “Equally important is that the revenue officer so authorized must not go beyond the authority given,” the tax court added. — John Victor D. Ordoñez

Dior rebuilds historic Paris address into sprawling flagship, museum

GALERIEDIOR.COM

PARIS — Dior is reopening its sprawling flagship store and a museum at the label’s historic Avenue Montaigne site after a two-year revamp, the latest in a series of hefty real estate investments from luxury conglomerate LVMH in the French capital.

The official opening of the complex, scheduled for March 6, follows on the heels of a flurry of inaugurations of new sites from the group in recent months, including a department store and two luxury hotels — the Cheval Blanc overlooking the Seine River and the Bulgari hotel on the tony Avenue George V.

LVMH has benefitted from a post-pandemic boom in demand in high-end consumption, even without the return of wealthy visitors from abroad — a key source of revenue for the industry in recent years, particularly in Europe.

“Of course, we are optimistic the tourists will one day come back,” Pietro Beccari, the chairman and chief executive of Christian Dior Couture, told Reuters.

The newly expanded complex stretches over 10,000 square meters, with cafes, gardens, a restaurant and a private apartment for overnight visits from VIP clients, in addition to floors of retail space stocked with clothing, accessories, tableware, and makeup.

Next to the store is a museum, La Galerie Dior, that traces the label’s history from the 1940s, including dresses from that era, as well as the late Christian Dior’s desk and an original fitting room packed with hats, gloves, and jewelry.

The project was thought up by Mr. Beccari and LVMH head Bernard Arnault in 2018, before the label had the economic firepower for such an undertaking, Mr. Beccari said in an interview.

The executive declined to provide financial details for the project, which entailed moving historic workshops and 400 employees out of the space, and digging a second basement beneath the building.

“The building was kept standing on micro-poles for weeks — I didn’t sleep very well,” said Mr. Beccari. — Reuters

Lego Technic McLaren Formula 1 Race Car now available

McLaren’s F1 drivers Daniel Ricciardo (left) and Lando Norris at work on the Lego Technic McLaren Formula 1 Race Car. — PHOTO FROM LEGO

DESIGNED through a close collaboration between engineering experts from the Lego Group and McLaren Racing, the Lego Technic McLaren Formula 1 Race Car is said to be “packed with exquisite design and functionality which will be sure to steal the show in any collection.” The one-of-a-kind piece of engineering pays homage to the team’s iconic 2021 season livery, while giving fans a glimpse of what they might expect from McLaren Racing’s new F1 season model.

The Lego Technic version of the McLaren F1 car is fully modeled on the life-size version featuring a V6 cylinder engine with moving pistons, steering activated from the cockpit, suspension, and a differential lock. It is the first Lego Technic interpretation of a Formula 1 car, and offers racing fans a meticulous translation of McLaren’s design and cutting-edge technology crucial to on-track performance. The set “offers Formula 1 enthusiasts a chance to recharge and relax with a hands-on, focused building activity that helps them explore their passion for the sport.”

Said Lego Technic Head of Product Neils Henrik Horsted, “The partnership between the Lego Group and McLaren continuously develops each time we get together for the next collaboration. We never stop trying to excite and inspire our fans by pushing the limits of possibility through the technology and designs produced, both on the racetrack and with Lego buildings.”

Added McLaren Racing Technical Executive Director James Key, “We are excited to unveil the unique Lego Technic model of our McLaren F1 car, a fun and engaging product that celebrates our 2021 season livery while giving fans a hands-on interpretation of the new 2022 F1 car design. This has been made possible by an agile collaboration with the Lego Group, which has truly embraced the spirit of our brave and bold approach to design. The final product looks fantastic, and we cannot wait to make this available to our fans.”

The model is comprised of 1,432 total pieces, and measures over five inches high, 25.5 inches long, and 10.5 inches wide. It is complete with sponsor stickers to make it a true display piece. The Lego Technic McLaren Formula 1 Race Car 42141 is priced at P11,999 and is available in Lego Certified Stores, the official website at bankeebricks.ph, and partner online retailers like Lazada, Shopee, Dotcom, and Zalora.

Bread consumers to swallow the cost of Russia-Ukraine war

REUTERS

WINNIPEG, Manitoba — Russia’s invasion of Ukraine, one of the world’s breadbasket nations, has driven wheat prices to 14-year highs, forcing bread consumers to eat the cost.

Russia’s Feb. 24 invasion has severely hampered trade from Black Sea ports, driving up global Chicago benchmark wheat prices by 40% and further pushing global food inflation that was already the highest in a decade. Supply disruptions from Russia and Ukraine, which together account for 30% of world wheat exports and 20% of corn exports, will erode food security for millions of people, with the Middle East and North Africa especially vulnerable due to their reliance on imports, said Julie Marshall, spokesperson for the World Food Programme.

Oil and gas prices have also spiked due to sanctions against Russia, while costs of freight and raw materials like steel were already soaring due to pandemic-related supply chain breakdowns.

Even consumers in two of the world’s biggest wheat-growing nations, Canada and the US, are paying the price. “Unfortunately for the short and intermediate-term, food inflation and the cost of baked goods in the United States will go up more. This will impact the most vulnerable in our society the most,” said Robb MacKie, president and chief executive of the American Bakers Association.

Weeks before the latest wheat price spike, Calgary Italian Bakery in Alberta raised prices 7% to keep pace with costs associated with last year’s Canadian drought and inflation in prices of flour and yeast. Now Louis Bontorin, co-owner of the 60-year-old family business, fears he will need to raise prices significantly again, once he has depleted his four to five months’ flour supply.

“This could be really, really devastating,” Bontorin said. “Bread is one of the fundamentals, the essentials, and that’s the hard part. You’re trying to just take what you need, but you’re also cognizant of what effect (higher price) has on the consumer. “The buying power of everybody is just being eroded.”

The threat to wheat supplies from Russia’s invasion of Ukraine has been exacerbated by a drop in global stocks of major exporters. Supplies in the European Union, Russia, the US, Canada, Ukraine, Argentina, Australia and Kazakhstan are set to fall to a nine-year low of 57 million tons by the end of the 2021/22 season, International Grains Council (IGC) data shows.

Some mills signed contracts with farmers last autumn for the wheat they are currently using, insulating them for now from spikes related to the Russia-Ukraine war. But one miller said once it faces those higher costs, it will have to pass them along to the bakers that buy his flour.

“It will be mandatory. Either pay the higher cost or don’t get your flour,” said the miller, who asked not to be named due to the sensitivity of the situation. “I don’t think the general population has any idea what repercussions they will face.”

After Russia invaded, Rogers Foods’ President Joe Girdner’s phone started lighting up. The bakers who buy flour from his two British Columbia mills are now looking to secure supplies further out than before, on fears that prices could escalate even more.

It is also a problem for the miller. Spring wheat supplies were already running thin because of drought last year, and now global buyers who were depending on Black Sea supplies, may turn to Canada for wheat and compete with domestic mills, Girdner said.

“It’s a really big concern,” Girdner said of the Russia-Ukraine war. “And the real story will be if this situation drags on.” — Reuters

Peso seen to weaken on Fed hike bets

BW FILE PHOTO

THE PESO could depreciate this week amid the ongoing war between Russia and Ukraine and with the market expecting more hawkish signals from the US Federal Reserve.

The local unit closed at P51.74 per dollar on Friday, weaker by 24 centavos from its P51.50 finish on Thursday, based on data from the Bankers Association of the Philippines.

The peso also retreated by 40 centavos from its P51.34 close on Feb. 24.

The local unit depreciated versus the greenback due to market concerns on oil supply amid Russia’s invasion of Ukraine, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.

Reuters reported that fuel prices recorded their biggest weekly gains since 2020 amid market fears on the impact of sanctions against Russia, which is the world’s second-largest exporter of crude.

Brent futures on Friday increased $7.65 or 6.9% to close at $118.11, the highest since February 2013. Meanwhile, the US West Texas Intermediate rose by $8.01 or 7.4% to $115.68 a barrel, the highest since September 2008.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said market sentiment also tracked the country’s record outstanding debt as of January.

Preliminary data released by the Bureau of the Treasury showed outstanding debt hit P12.03 trillion, up by 16.5% from a year earlier and up by 2.6% month on month.

The Treasury said the debt stock rose after another zero-interest loan from the central bank and an increase in borrowing from domestic creditors.

For this week, Mr. Asuncion said the market will continue to track policy signals from the US Federal Reserve ahead of their rate decision this month.

Fed Chairman Jerome H. Powell on Wednesday said he will back a quarter percentage point interest rate increase on the upcoming policy review of the Federal Open Market Committee on March 15 to 16. He also said they will be ready for more aggressive action in case inflation does not cool as quickly as expected.

The market will also continue to monitor the war between Russia and Ukraine, Mr. Ricafort said.

The two parties are expected to have their third round of talks on Monday. The sides on Thursday agreed to launch humanitarian corridors to allow civilians out of combat zones, although some delays were seen on its implementation.

For this week, Mr. Asuncion gave a forecast range of P51.20 to P51.80 per dollar, while Mr. Ricafort expects the local unit to move within P51.40 to P51.90. — Luz Wendy T. Noble with Reuters

Stocks may rise on firms’ 2021 financial reports

BW FILE PHOTO

SHARES could rebound this week despite continued cautiousness over the Russia-Ukraine war as more companies release their financial reports.

The 30-member bellwether Philippine Stock Exchange index (PSEi) went down by 46.08 points or 0.62% to close at 7,342.01 on Friday, while the broader all shares fell by 22.90 points or 0.58% to 3,895.52.

Week on week, the PSEi went up by 129.78 points from its finish of 7,212.23 on Feb 24.

“Market participants may look forward to the string of economic and corporate earnings results that will be released in the coming days,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message.

Some 56% of the PSEi basket have already reported their financial results and 21% of them are expected to release their reports in the coming week, online brokerage 2TradeAsia.com said.

This week, companies holding analyst briefings include Ayala Corp., Metro Pacific Investments Corp., AC Energy Corp., Security Bank Corp., BDO Unibank, Inc., Robinsons Land Corp., Megaworld Corp., Aboitiz Power Corp., Equity Ventures, Inc., Ginebra San Miguel, Inc., Petron Corp., and San Miguel Corp., among others.

“In the international scene, investors may be watching closely how the geopolitical tensions between Ukraine and Russia unfold, along with the impact it brings to global commodity prices,” Mr. Pangan said.

The number of Ukrainian refugees was expected to reach 1.5 million on Sunday as Russia continued its attack 11 days after invading Ukraine and Kyiv pressed for further Western action, including more sanctions and weapons, Reuters reported.

Moscow and Kyiv traded blame over a failed ceasefire on Saturday that would have let civilians flee Mariupol and Volnovakha, two southern cities besieged by Russian forces. Ukrainians who could escape spilled into neighboring Poland, Romania, Slovakia and elsewhere.

Ukrainian negotiators said a third round of talks with Russia on a ceasefire would go ahead on Monday, although Moscow was less definitive.

2TradeAsia.com said that the Russia-Ukraine crisis could push the US Federal Reserve be more dovish in its policy adjustments.

“The other half of the anxiety, at least from a market standpoint, is on the oil markets. Crude prices hit levels never before seen since 2010, and as a perennial oil importer, the country is already experiencing great fiscal pressure to make interventions,” 2TradeAsia.com said.

The Fed is expected to start raising rates this month, with analysts previously predicting the central bank to start its tightening cycle with a 50-basis-point hike to combat rising inflation.

US crude prices topped $115 a barrel last week, while other commodities such as wheat also surged.

For the coming week, 2TradeAsia.com placed the PSEi’s immediate support at 7,200 and resistance at 7,500.

Meanwhile, Timson Securities’ Mr. Pangan said support is pegged at 6,940 and resistance at 7,510. — L.M.J.C. Jocson with Reuters