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Cemex Philippines net income more than doubles in Q1

Cemex Holdings Philippines, Inc. (CHP) booked a P205-million net income in the first three months of the year, 130% higher than the P89 million earned in the same period in 2020 on the back of lower financial expenses.

In a regulatory filing on Friday, the cement producer said expenses declined by 78% on lower debt levels and interest rates in the first quarter.

However, consolidated net sales slipped by 8% to P5.2 million, as volumes dropped and prices fell.

Domestic cement volumes declined by 4% year on year, as the construction activity for both residential and non-residential projects slowed amid the pandemic.

“CHP’s domestic cement prices remained flat quarter-on-quarter. Net of freight charges, CHP’s domestic cement prices during the first quarter decreased by 1% year-over-year due to subdued activity and competitive market dynamics,” the company said.

Meanwhile, earnings from public infrastructure projects increased in the first two months of the year to P107 billion as CHP received payments for projects started in late 2020.

CHP shares at the stock exchange slipped by 2.52% or three centavos to close at P1.16 each. — Keren Concepcion G. Valmonte

BSP allows person-to-merchant payments under QR Ph

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THE BANGKO SENTRAL ng Pilipinas (BSP) has expanded QR Ph, the country’s QR code standard, to enable person-to-merchant (P2M) payments to boost the digitalization of small businesses.

The pilot launch of the scheme led by the BSP and the Philippine Payments Management, Inc. (PPMI) will include select merchants that use InstaPay. More businesses are expected to come onboard for the full implementation of the QR Ph P2M scheme, which is set in the third quarter.

“The safety, ease and affordability of using QR Ph P2M will make digital payments more accessible to micro, small, and medium Enterprises (MSMEs) in the Philippines. Given that the sector comprises around 99% of the total number of businesses in the country, the adoption of QR Ph P2M by MSMEs will allow more Filipinos to reap the benefits of digital payments,” BSP Governor Benjamin E. Diokno said during the virtual launch on Friday.

Consumers with accounts in AllBank (A Thrift Bank) Inc.; Asia United Bank Corp.; China Banking Corp.; Rizal Commercial Banking Corp.; Robinsons Bank Corp.; and UnionBank of the Philippines, Inc. can start making payments via the scheme for merchants that also have accounts in these institutions.

Consumers will only need their phones for these transactions instead of using their credit or debit cards.

“Under the QR Ph, customers would not have to maintain separate accounts with the payment service providers who are enrolled in it. Merchants enrolled in QR Ph would also not need to display numerous QR codes in their establishments,” the central bank said.

A report from the BSP and the Better than Cash Alliance showed digital merchant payments climbed 33% in 2019, backed by low value retail transactions.

The study also found remittances and merchant payments done digitally climbed 39% and 66%, respectively, in 2019 from a year earlier.

“QRPH P2M digitizes the most widely-used case yet ranks among the least digitalized at less than 13% of transaction volume,” BSP Deputy Governor Mamerto E. Tangonan said. He added the use case is tapped by 85% of Filipino adults.

The BSP wants digital payments to make up 50% of all transactions both in volume and value by 2023. — LWTN

Central bank fully awards offer of short-term bills

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THE BANGKO SENTRAL ng Pilipinas (BSP) made a full award of the 28-day bills it offered on Friday as rates dropped due to the peso’s appreciation and flows from tax payments.

The central bank raised P100 billion as planned from its auction of the one-month securities, with demand amounting to P151.5 billion, making the offer 1.5 times oversubscribed. This was higher than the P141.25 billion in bids for the previous auction.

The average rate of the 28-day debt papers stood at 1.8052%, down by 2.34 basis points from the 1.8286% quoted previously. Investors asked for yields ranging from 1.79% to 1.82%, slightly lower than the 1.7925% to 1.844% band seen a week ago.

The short-term bills and the term deposit facility are tools used by the central bank to mop up excess liquidity in the system and guide short-term rates.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the lower yields for the BSP bills came following the appreciation of the peso.

The peso closed at P48.315 per dollar on Thursday, stronger by 16.2 centavos against its P48.477 close on Wednesday, based on data from the Bankers Association of the Philippines.

Mr. Ricafort added that tax flows during the month due to the April 15 deadline for payments also caused rates to go down as this boosted the government’s cash position. — LWTN

Peso surges to two-month high vs dollar

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THE PESO closed at a two-month high versus the greenback on Friday on profit-taking and as the country’s balance of payments (BoP) gap narrowed in March.

The local unit closed at P48.10 per dollar on Friday, stronger by 21.5 centavos than its P48.315 finish on Thursday, data from the Bankers Association of the Philippines showed.

This was its strongest in more than two months or since its P47.93-per-dollar finish on Feb. 15.

The local unit also appreciated by 28.1 centavos from its P48.381 close on April 23.

The peso opened Friday’s session stronger at P48.27 per dollar. It reached a peak of P48.099, while its intraday low was at P48.28 against the greenback.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso was supported by the slimmer BoP deficit seen in March.

The country’s BoP deficit stood at $73 million in March, narrowing from the $2.019-billion gap in February, the Bangko Sentral ng Pilipinas (BSP) reported on Thursday. However, the March figure was a reversal of the $448-million surplus seen in the same month last year.

The central bank said the deficit reflected outflows after the government paid its foreign currency debts.

Meanwhile, a trader attributed the peso’s gains to profit-taking prior to release of US economic data on Friday.
The US Commerce Department was set to release consumer spending data for March after the local market’s close. — LWTN

Agricultural trade slides by 7% in 2020

EMME ROSE SANTIAGUDO

THE VALUE of agricultural trade dropped by 7.1% year on year to $18.78 billion in 2020 as both exports and imports declined, the Philippine Statistics Authority (PSA) reported on Friday.

The PSA said agricultural exports declined by 7.1% to $6.20 billion in 2020. These products made up 9.5% of the country’s total outbound shipments last year.

Edible fruits and nuts and peel of citrus fruit melons, which accounted for the largest share or 37.5% of the total exports, were valued at $2.32 billion.

Meanwhile, exports of animal or vegetable fats and oils and their cleavage products were worth $32 million; preparations of meat, of fish or of crustaceans, molluscs, and other aquatic invertebrates were valued at $231.49 million; and preparations of vegetables, fruit, nuts or other parts of plants were at $142.40 million.

Meanwhile, agricultural imports decreased by 7.1% to $12.58 billion last year. This accounted for 14% of the country’s inbound shipments in 2020.

Cereals were the top imported goods at $2.55 billion. Miscellaneous edible preparations came second at $1.56 billion, and residues and waste from food industries or prepared animal fodder ranked third at $1.43 billion.

The balance of trade in agricultural goods stood at a $6.38 billion gap in 2020, down 7% from $6.85 billion in 2019.

Among ASEAN countries, Malaysia was the top destination of the country’s exports, accounting for 33.8% or $226.77 million of the total, while Vietnam was the major source of imports at 27.4% or $1.19 billion.

The PSA said the top agricultural products exported to other ASEAN countries were tobacco and manufactured tobacco substitutes valued at $230.82 million; animal or vegetable fats and oils and their cleavage products, and prepared edible fats, and animal or vegetable waxes at $126.52 million; and preparations of cereals, flour, starch or milk; pastry cooks’ products worth $62.59 million.

On the other hand, miscellaneous edible preparations were the top agricultural commodity imported from ASEAN countries at $1.09 billion. Cereals came second at $938.76 million, while animal or vegetable fats and oils and their cleavage products, prepared edible fats, and animal or vegetable waxes were at $877.05 million.

Meanwhile, the Netherlands was the Philippines’ top trading partner among countries in the European Union, with exports to the country valued at $280.15 million or 20.9% of the $1.04 billion in shipments of agricultural products to the EU last year. — A.Y. Yang

CALAX segment due in Q3 now 93% complete

THE 7.2-kilometer segment of the Cavite-Laguna Expressway (CALAX) set to be finished by the third quarter is 93% complete, MPCALA Holdings Inc. said.

Toll structures for the Silang East interchange have been put up, while drainage construction as well as express road and safety features installation are on track, the company said in a press release on Friday.

The segment, or subsection 5, links Sta. Rosa-Tagaytay Interchange to Silang East Interchange. It is part of the 45-kilometer CALAX expressway running from Kawit, Cavite to Mamplasan Interchange in Biñan, Laguna.

“Once operational, we expect CALAX (segment) to serve around 5,000 motorists daily, thereby helping decongest traffic along Governor’s Drive, Aguinaldo Highway, and Sta. Rosa-Tagaytay Road,” MPCALA President and General Manager Roberto V. Bontia said.

The initial operational CALAX segments connect Mamplasan to Santa Rosa in Laguna.

Once completed, CALAX will serve around 45,000 vehicles daily. The Public Works and Highways department targets to finish works by the end of 2022.

The company also said it installed four emergency call box devices along CALAX. Equipped with loudspeakers and cameras, the devices can help motorists call for help during emergencies.

With the devices, emergency response times would be around eight to ten minutes, Mr. Bontia said.

MPCALA Holdings is a subsidiary of Metro Pacific Tollways Corp., the tollways unit of Metro Pacific Investments Corp., which is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Jenina P. Ibañez

Lawmaker eyes cash transfers funded by taxes on the rich under new Bayanihan law

A LAWMAKER is batting for a Universal Basic Income (UBI) system as part of the proposed third economic stimulus fund, with those with higher income to be taxed more to help fund this component.

In a statement on Friday, Albay 2nd District Representative Jose Ma. Clemente S. Salceda said the implementation of the proposed Bayanihan to Arise as One Act is “an opportunity to experiment with UBI.” The bill for the third economic stimulus fund was approved jointly by the House Committees on Economic Affairs and Social Services.

“The concept of UBI is that it is a measure to correct some of the faults of the free market, including over-accumulation of wealth. We need those measures in this country,” he said.

UBI is a system where the government supports individuals by giving them a set amount of money regularly.

The third Bayanihan bill, a follow-up to the Bayanihan to Heal As One and Bayanihan to Recover as One laws signed last year, aims to help the economy recover from the impact of the coronavirus disease 2019 (COVID-19) pandemic.

“COVID-19 was a jobs killer. It killed many small businesses. While Filipinos resorted to microentrepreneurship, mostly via online selling and the informal sector, these are not sustainable income flows. Meanwhile, the wealthiest segments of the population were able to buy assets on the cheap. As the economy recovers, they will only get richer,” Mr. Salceda said.

Mr. Salceda said the UBI system will be funded by revenues generated from rationalized taxes on the wealthy, which is part of the third package of the government’s Comprehensive Tax Reform Program.

“The most obvious tax on the wealth is the real property tax. We should update land valuations and pass Package 3 of tax reform, or the Real Property Valuation and Assessment Reform. I am also proposing that we impose higher rates on low-density housing for the rich in Metro Manila,” he said. — G.M. Cortez

Four more firms cleared for DoE’s green energy option program

THE DEPARTMENT of Energy (DoE) has cleared four more renewable energy (RE) suppliers for the green energy option program (GEOP), bringing the number of approved firms to ten.

On Friday, the DoE posted on its website the four new eligible RE firms: Citicore Energy Solutions, Inc.; Aboitiz Energy Solutions, Inc.; Prism Energy, Inc.; and Adventenergy, Inc.

The GEOP is a voluntary policy mechanism which allows users consuming at least 100 kilowatts of power to source their supply from qualified retail energy suppliers that generate electricity from renewables.

Firms that want to participate in the GEOP need to secure an operating permit from the DoE’s Renewable Energy Management Bureau. Those with permits are allowed to supply electric power to end-users, according to a department circular issued in April last year.

In January, the DoE released the list of the first batch of firms that qualified for the program: Bacman Geothermal, Inc.; First Gen Energy Solutions, Inc.; SN Aboitiz Power-Magat, Inc.; SN Aboitiz Power-Res, Inc.; AC Energy Philippines, Inc.; and Sparc-Solar Powered Agri-Rural Communities Corp. — A.Y. Yang

DTI mulls requiring quality certification for air purifiers

AIR PURIFIERS may be placed in the list of goods that must be certified for quality before being sold in the Philippines, the Department of Trade and Industry (DTI) said.

Dapat i-certify ‘yan. Actually nirereview ng aming Philippine standards bureau para magkaroon din ng mandatory compliance,” DTI Secretary Ramon M. Lopez said in an interview with DZBB on Friday.

Air purifiers must deliver on the claim of improved air quality, he said.

Manufacturers and importers of products on the mandatory certification list must secure a Philippine standard (PS) mark to sell their goods in the local market. The DTI conducts factory and product audits.

The DTI in February returned ceramic tiles to the list of products that must be certified for quality, while plywood was put back in the list last year.

Demand for disinfection products and services increased amid public health fears during the coronavirus pandemic.

Intech Group Innovations Corp., the distributor of UV Care sterilization and air purifier products, in May last year said growing demand for their products at the time had led to global scarcity. — J.P. Ibañez

Stocks drop on weak economic data

COURTESY OF PHILIPPINE STOCK EXCHANGE, INC.

STOCKS declined on Friday following the release of data showing the National Capital Region’s (NCR) output contracted by double digits in 2020, which weighed on the Philippine economy.

The Philippine Stock Exchange index shed 116.64 points or 1.79% to close at 6,370.87 on Friday, while the all shares index dropped by 44.93 points or 1.13% to 3,923.03.

“The market slid especially during the last minute of trading as investor sentiment was affected by the PSA’s (Philippine Statistics Authority) report that the NCR shrunk 10.1% in the year 2020,” Darren Blaine T. Pangan, trader at Timson Securities, Inc., said via Viber message.

“More corporate earnings reports are also being assessed by market participants, to get a feel of how the sectors have performed during the last few months,” Mr. Pangan added.

AB Capital Securities, Inc. Junior Equity Analyst Lance U. Soledad said stocks closed the week lower due to “slower recovery expectations” after the government continues to impose lockdown measures due to the number of coronavirus disease 2019 (COVID-19) infections.

“For this week, Fitch [Ratings] and ADB (Asian Development Bank) downgraded their 2021 GDP (gross domestic product) growth forecasts for the Philippines,” Mr. Soledad said in a separate Viber message.

NCR’s economy, alongside those of Calabarzon and Central Luzon, suffered double-digit contraction that weighed heavily on the country’s output last year, the PSA reported on Thursday.

posted declines, reflecting the Philippine economy’s downward revised record 9.6% drop last year amid strict lockdowns put in place to contain the spread of COVID-19.

Preliminary results from the PSA 2020 Regional Accounts showed NCR shrank by 10.1% last year from the 7% growth recorded in 2019.

Metro Manila remained the largest contributor to the country’s economic output at 31.9%, albeit lower from 32.1% share in 2019.

Meanwhile, Fitch Ratings lowered its Philippine GDP growth forecast to 6.3% from the 6.9% it gave in January due to the surge of COVID-19 cases in the country. The ADB also cut its outlook to 4.5% from 6.5% previously.

Both are lower than the government’s 6.5% to 7.5% target.

All sectoral indices closed the week in the red on Friday except for mining and oil, which gained 196.77 points or 2.08% to finish at 9,644.29.

Meanwhile, property lost 88.99 points or 2.81% to 3,077.94; holding firms declined by 117.12 points or 1.78% to 6,441.31; financials went down by 16.05 points or 1.13% to 1,394.23; services shaved off 12.41 points or 0.85% to end at 1,443.11 points; and industrials decreased by 30.3 points or 0.34% to 8,679.35.

Value turnover jumped to P8.62 billion on Friday with 6.77 billion shares switching hands, from the P4.73 billion seen the previous day with 4.23 billion shares traded.

Decliners outnumbered advancers, 110 versus 91, while 47 names closed unchanged.

Net foreign selling went down to P307.2 million on Friday from the P394.39 million seen on Thursday. — K.C.G. Valmonte

New Zealanders face mental health, economic challenges in pandemic recovery

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WELLINGTON – New Zealanders are still reporting negative impacts on mental health and income from the coronavirus pandemic, despite living in one of the world’s few countries to have largely returned to normal.

The Pacific island nation, which has had only about 2,200 cases and 26 deaths in a population of 5 million, enforced strict lockdowns and social distancing rules that helped to virtually eliminate the virus.

But it’s now undergoing what economists call a ‘K-shaped’ recovery in which wealth inequalities are widening, compounded by surging property prices and a housing shortage.

The survey, released to Reuters, shows 46% of New Zealanders said they or a household member had trouble sleeping because of the spread of COVID-19, higher than the 43% recorded by the survey in June-July last year. About 40% continue to say they feel depressed. (Survey link: https://bit.ly/2Sb53SZ)

“As one of the very few countries in the world that is largely back to ‘normal’, we would have expected mental health to improve,” said Jagadish Thaker, senior lecturer at the School of Communication, Journalism & Marketing at Massey University in Wellington, who published the report.

“But our survey shows that a substantial proportion of the public is still struggling with economic and mental health issues.”

The findings highlight the lasting impact of the pandemic on people’s lives, raising concerns about other nations suffering a more severe crisis. (FACTBOX on the global spread of coronavirus )

One in five who participated in the survey said they or a household member lost income from a job or business, while nearly one in nine said they or a family member lost a job or have filed for unemployment benefits, showing little improvement from last year.

The survey found poorer ethnic minorities were disproportionately affected, with Māori, Pasifika, and Asians two to three times more likely to have lost a job and filed for employment benefits.

“Together, these findings suggest that government should increase momentum on policies supporting individuals and communities most impacted by COVID-19,” Thaker said.

Failure to do so could mean Prime Minister Jacinda Ardern will squander much deserved international recognition from tackling the spread of COVID-19, he added.

New Zealand will hand down its annual budget on May 20, which is expected to focus on tackling COVID-19 and its impact. The government did not immediately respond to a request for comment.

The report was based on a survey of 1,083 New Zealanders between Feb. 15 and Mar. 6, and is yet to be made public.

Brazil Senate votes to suspend patent protection on COVID-19 vaccines

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BRASILIA – Brazil’s Senate on Thursday approved a bill to suspend patent protection for COVID-19 vaccines, tests and medications during the pandemic, sending the proposal to the lower house of Congress for consideration and possible amendments.

It remains unclear if lower house lawmakers will pass the bill, with implications for pharmaceutical firms such as AstraZeneca and China’s Sinovac Biotech, which have arranged local production of their COVID-19 vaccines.

U.S. firm Pfizer also made its first delivery of coronavirus vaccines to Brazil on Thursday evening.

The government of President Jair Bolsonaro has publicly opposed proposals to suspend patent protections, arguing that such a move could endanger talks with vaccine producers.

Brazil on Thursday saw its death toll from the pandemic pass 400,000, the second-highest tally in the world after the United States. Experts say that Brazil’s slow vaccine rollout is likely to keep the daily death toll high for months.

“We can’t remain passively watching, day after day, 3,000 to 5,000 deaths. The opportunity is there, we must do our part,” said Senator Nelsinho Trad, one of the backers of the bill.

The bill was passed by 55 votes in favor, and 19 against.

According to the proposal, patent holders would be obliged to provide authorities with all the information needed to produce COVID-19 vaccines and medicines. Then, if the government were to call a state of emergency, they could be produced locally under a licensing agreement.

The objective, according to Senator Paulo Paim, who drafted the bill, is to streamline vaccine production in order to accelerate inoculations.

Neither the president’s office nor health ministry immediately responded to requests for comment. – Reuters