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BPI pioneers ‘all-in-one’ auto loan and insurance bundle

By Kap Maceda Aguila

BPI Retail Loans Group Head Dennis Fronda — PHOTO FROM BPI

THE PANDEMIC has necessitated the reexamination of many aspects of daily life and whether they make sense in this new normal. Convenience is truly king, particularly if it means saving on effort and time (and in some cases, a trip to go out).

BPI Family Savings Bank (BFSB) President Ginbee Go acknowledged that “transport and travel” have been the hardest hit. Commensurately, the company has to “dial down” on its outlook as auto insurance volumes were on the decline. The Ayala-led banking brand thus had to “pursue initiatives that build on resilience and prudence.”

First things first, Ms. Go underscored, are the protection of employees, continued cash flow for customers, proceeds reaching dealer partners within a day, and the approval and release of loans “without fail.” It’s not just about learning to pivot, but seeing to business continuity.

“We need to give hope (by providing) relevant solutions to address challenging times,” continued Ms. Go.

With that in mind, the Bank of the Philippine Islands (BPI) recently launched “BPI Auto Loan Multiyear Protect” which provides comprehensive insurance coverage for auto loan clients. The protection spans the entire duration of the loan.

Instead of lump sum payments at the start of each year, the BPI product combines monthly installments with the loan amortization payments “in a more affordable and convenient package.” There’s no more need for lump sum upfront payments for insurance.

Auto loan customers also get Guaranteed Asset Protection (GAP) insurance coverage — providing up to P200,000 of additional coverage in case of the vehicle’s “total loss.”

Said BPI Retail Loans Group Head Dennis Fronda, “The Multiyear Protect prioritizes our customers’ convenience and peace of mind because it was designed to eliminate the financial worries and administrative hassles a typical car loan client might experience today.” To offer the service, BPI partners with BPI M/S Insurance Corp.

“We wish to provide customers the confidence to pursue their dreams of owning a car today and give them the premium experience they deserve. On a larger scale, we also hope that this will translate to better consumer confidence that will result in more car sales and help the auto industry bounce back this year,” he added.

BPI is treating 2021 as the year of recovery and growth for both the auto sales and financing sectors. “Auto Loan Multiyear Protect is one of our ways to show our commitment to provide customers with reliable and relevant financial solutions, so we can all have opportunities for better times ahead,” he said. Replying to a question from “Velocity,” the executive maintained that the company is cognizant about its role in helping spur and enable vehicle purchases, and that they have been meeting with auto executives with a view toward enabling the renewal of the sector.

Interested applicants may visit bpiloans.com to learn more about Multiyear Protect or visit any BPI or BFSB branch nationwide to talk to the bank’s expert loan advisors.

Meralco to suspend disconnection activities until mid-April 

MANILA Electric Co. (Meralco) will halt its disconnection activities in its franchise area until April 15 shortly after the government placed Metro Manila and nearby provinces an enhanced community quarantine (ECQ).

In a press release issued on Saturday, Meralco said that it is “immediately suspending all disconnections” until mid-April.

“We hope this measure will contribute to easing the burden of our customers and provide enough relief and time for them to settle their bills,” Meralco First Vice-President and Chief Commercial Officer Ferdinand O. Geluz was quoted as saying.

He reiterated that Meralco will continue to be considerate, and vowed to help customers with their electricity concerns.

The utility firm said business operations, including meter readings and bill deliveries, will continue amid stricter quarantine measures.

“Rest assured there will be strict implementation of health protocols in order to safeguard the health and safety of both customers and our personnel. This will ensure that actual consumption for the month will be billed accordingly,” Mr. Geluz said.

He added that the Meralco crew will be on standby to respond to emergencies and reports.

Meralco said that customers can reach the power firm by sending a personal message through its social media platforms on Facebook and Twitter, Meralco said. They can also call its hotline before heading to Meralco business centers, which will be on skeleton force.

The distribution utility said that its business centers will remain open to accept payments and applications, and will continue assisting customers. Business hours from Monday to Friday will be from 7 a.m. to 3 p.m.; and 7 a.m. to 12 p.m. on Saturdays. The centers will be closed on April 1 to 3 in observance of Holy Week.

On Saturday, Presidential Spokesman Herminio L. Roque, Jr. said that the National Capital Region, Bulacan, Cavite, Laguna, and Rizal will be placed under a one-week ECQ starting from March 29 up until April 4, 2021.

Earlier this month, Meralco reported that its core net income in the fourth quarter slid by 11.2% P5.98 billion year on year, capping 2020 with residential users making up the biggest share in power consumption.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., which has interest in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang

Yields drop on BSP, rising cases

YIELDS ON government securities (GS) rallied last week amid buying interest as rising coronavirus cases raised lockdown concerns, while the Bangko Sentral ng Pilipinas’ (BSP) decision to keep rates steady also affected trading.

Debt yields, which move opposite to prices, dropped by 8.82 basis points (bps) on average week on week, data from the PHP Bloomberg Valuation Service Reference Rates as of March 26 published on the Philippine Dealing System’s website showed.

“Strong buying interest swamped the GS market with yields of the belly to the long end of the curve trending lower,” Robinsons Bank Corp. peso sovereign debt trader Kevin S. Palma said in a Viber message.

“Concerns on renewed lockdown orders amid a continued rise in cases in the nation’s capital have somewhat complicated the country’s rebound prospects and have kept inflation expectations in check, thereby increasing chances for the BSP to keep its policy settings accommodative for longer,” he said.

“The local bond market found some reprieve brought about by softer US Treasury yields week-on-week…mainly due to some risk-off sentiment amid concerns on renewed lockdown orders on key European countries,” Mr. Palma added.

Manila and nearby provinces will return to stricter quarantine measures from Monday, a senior official said on Saturday, as the Philippines battles to contain a surge in coronavirus disease 2019 (COVID-19) cases that has strained hospitals, Reuters reported.

Presidential Spokesperson Herminio “Harry” L. Roque, Jr. said the measures, which will be in place until April 4, will ban nonessential movement, mass gatherings, dining in restaurants. They represent a further tightening of curbs imposed on March 22.

The Health department on Saturday reported 9,595 new coronavirus cases, marking the second straight day the daily jump in infections remained above 9,000.

Meanwhile, Philippine Bank of Communications Senior Trader Justin Robert G. Ladaban said yields dropped after the market’s strong support for the 10-year bond auction on Tuesday.

“Although they were generally higher than market levels prior to the auction, they were within market estimates. This drove the rally along with the fact that the BSP reiterated its intent to keep policy rates accommodative in spite of higher inflation print that we’ve been seeing the last couple of months and the fact that the market remains very liquid,” Mr. Ladaban said in a separate Viber message.

The Bureau of the Treasury (BTr) on Tuesday raised P30 billion as planned from its auction of reissued 10-year Treasury bonds (T-bonds) with a remaining life of nine years and three months. The offer was nearly twice oversubscribed as bids reached P53.92 billion. The bonds fetched an average rate of 4.614% versus the 3.066% seen in the previous offering. 

Meanwhile, the central bank left its key interest rate unchanged at a record low on Thursday, as it supports an economy whose recovery is at risk from a renewed surge in COVID-19 infections.

The Monetary Board kept the overnight reverse repurchase rate at an all-time low of 2% for a third consecutive meeting. Rates for the overnight lending and deposit facilities were also maintained at 2.5% and 1.5%, respectively.

The central bank has kept policy settings steady since its December meeting, but BSP Governor Benjamin E. Diokno has said they will respond accordingly when the need arises, especially if rising inflation causes second-round effects.

Headline inflation reached 4.7% in February, the highest since the 5.1% in December 2018.

The central bank upwardly revised its inflation outlook to 4.2% this year from the forecast of 4% given in February. The average print for 2022 is seen at 2.8%, slightly higher than the previous projection of 2.7%.

At the end of trading on Friday, the rates of short-dated debt papers rose compared with their week-ago levels. Yields on the 91-, 182-, and 364-day Treasury bills increased by 2.34 bps (to 1.3006%), 1.73 bps (1.4647%), and 0.31 bp (1.9349%), respectively.

On the other hand, the two-, three-, four-, five-, and seven-year T-bonds fell by 10.18 bps, 17.44 bps, 21.45 bps, 23.03 bps, and 20.32 bps, respectively, to fetch 2.4299%, 2.7708%, 3.0354%, 3.312%, and 3.9029%.

At the long end of the curve, yields on the 10- and 25-year debt also declined by 9.01 bps (4.3735%) and 0.36 bp (4.9973%), respectively. Meanwhile, the 20-year bond inched up by 0.43 bp to fetch 5.0033%.

“The market closed the week off the lows in terms of yields so it could establish a range [this] week,” Mr. Ladaban said, noting the market will take its cue from the BTr’s April auction schedule.

“Market players are likely to keep looking for developments onshore such as BTr’s borrowing schedule in April and BSP’s inflation forecast for March. For the week, expect some choppy trading ahead of the Holy weekend,” Robinsons Bank’s Mr. Palma added. — Marissa Mae M. Ramos

In a gloomy mood, Europe’s farmers cut back sugar beet sowings

PARIS — Gloomy European sugar beet farmers are cutting back plantings this year, discouraged by poor yields and low prices.

Production has fallen in the European Union, mainly pressured by a slump in prices, since an initial bounce when the bloc dropped its sugar production and export quotas in 2017.

A combination of drought and pest attacks that spread the virus yellows disease led to one of the worst sugar beet harvests in history last year.

This year, French farmers are expected to plant about 6% less sugar beet than in 2020 at 400,000 hectares, Timothe Masson, agronomist at French sugar beet group CGB said.

“The main reason for the fall is economical: farmers are not motivated to grow sugar beet anymore,” he said, adding that most of them had lost money last year.

In Poland, the EU’s third largest sugar producer, sowing had not started yet with cold weather causing a slight delay compared to last year, said Rafal Strachota, director of Polish beet growers’ association KZPBC.

“We predict a slight decrease in the area sown with this crop in 2021,” he said. He did not give details of the area expected to be sown, but said some farmers had turned to other spring crops.

“After a very difficult year, with a record low sugar content in beets, the mood among farmers is not optimistic.”

The fall in the area in France came despite the government allowing farmers to use pesticides known as neonicotinoids, initially banned to protect bees, for another three years to curb virus yellows.

About half of the area was expected to have been sown by early next week, Masson said. This was about a week later than average due to wet weather that hampered field work.

In Germany plantings are underway on a wide scale in good weather conditions but it was still too early for an estimate of the area, said Guenter Tissen, head of German sugar industry association WVZ.

“Weather prospects currently look good, so that we can expect optimal beet development and ground temperature,” he said.

A drop in area was also expected in Britain this year.

“The area is shrinking because growers are losing faith in the crop. We think only 90,000 hectares of sugar beet will be grown, a 13 to 15% fall on a normal year,” James Northen, head of sugar at Britain’s National Farmers Union. — Reuters

Style (03/29/21)

UNIQLO appoints Green Doraemon as Global Sustainability Ambassador

GLOBAL apparel retailer UNIQLO has announced that it has appointed a green version of the internationally beloved blue Japanese manga and anime character Doraemon as its Global Sustainability Ambassador. Presented with the UNIQLO logo also rendered in green, he will help convey the many ways in which UNIQLO materializes its sustainability message of “Changing our future through the power of clothing.” As UNIQLO Global Sustainability Ambassador, Doraemon will be presenting the brand’s sustainability initiatives in fun and easily understandable ways. Rendering Doraemon and the UNIQLO logo green underscores the company’s determination to accelerate its sustainability efforts. Doraemon Sustainability Mode will feature in UNIQLO stores around the world, the brand websites, and other channels. Doraemon joins Japanese actress Haruka Ayase and UNIQLO Global Brand Ambassadors Roger Federer, Kei Nishikori, Shingo Kunieda, Gordon Reid, Ayumu Hirano, and Adam Scott in taking UNIQLO’s sustainability initiatives forward. The six UNIQLO Global Brand Ambassadors will contribute to these endeavors through sport and by wearing everyday apparel incorporating environmentally friendly materials. For more information, visit the UNIQLO Sustainability site at www.uniqlo.com/en/sustainability/ and the Fast Retailing 2021 Sustainability Report 2021 at www.fastretailing.com/eng/sustainability/report/new.html.

Shoe designer Joel Wijangco joins international footwear design tilt

ON the heels of his recognition as one of the finalists of the Department of Trade and Industry’s (DTI) and the Philippine Footwear Federation Incorporated’s (PFFI) annual Filipino Footwear Design Competition, Joel Wijangco is now an official representative of the Philippines in the upcoming International Footwear Design Competition in Guangzhou, China. His winning entry this year, which will be sent to the international competition in China is “Sister’s Favorite.” The provocative and cheeky design, in which the wearer’s foot is in a bowl of ramen, is inspired and dedicated to the designer’s sister, a teacher working in Japan. Upon hearing news that his sister’s cancer had come back, Mr. Wijangco created the shoe to tell her story and to capture the moments they shared over a bowl of ramen. Mr. Wijangco uses traditional and non-traditional materials in his “Sister’s Favorite” shoe design, collaborating with Tawong Lipod, a special effects and prosthetics company. “Cari Dawn Conejero, its founder, has been a joy to work with, a kindred soul definitely. Together, we created the shoes from resin, rubber, and plastics, with a fiberglass-coated metal shank embedded in its sole,” he added. Parties interested in customized and unique shoe designs can e-mail: joel.wijangco@gmail.com.

One-stop perfume shop in LazMall

RUSTAN Marketing Corp. has opened The Perfumerie Flagship Store at LazMall, a one-stop shop for all things fragrances, which has an ongoing sale until March 31. The Perfumerie fills the virtual shelves with a wide range of perfumes and colognes for men, women, and children. Among the fragrances are those from world renowned brands like Charriol, Vera Wang and Nautica. There is Vera Wang’s Embrace Body Mist Collection which has four fragrance pairings: Green Tea & Pear Blossom, Rose Buds & Vanilla, Periwinkle & Iris and Marigold & Gardenia. Enjoy up to 15% off on Vera Wang scents until March 31. Meanwhile, Charriol fragrances are a juxtaposition between the classic and the modern. For something luxurious, the Eau de Toilette for Women features a fruity-floral scent with hints of bergamot, passionfruit, carambola, freesia, jasmine, date fruit, teak wood, vetiver and musk. It is bottled in a circle-shaped flacon that’s detailed with gold and gems. It is available at 25% off. Nautica’s Voyage Collection is fresh and aquatic, with top notes of green leaves and crisp apple. Nautica Voyage Sport captures the senses with its fresh, woody fougere opening with a sea spray accord and energy coming from citrus zest and coriander. Score up to 15% off on select Nautica scents until March 31. Lamborghini’s Essenza is a men’s fragrance inspired by colors and scents from the heart of Italian Mediterranean Coast. It is a clean, invigorating, masculine aroma, bursting with freshness and clarity of crisp citrus and brisk woody elements. Shop Lamborghini Fragrances at The Perfumerie Flagship Store to get up to 25% off. Among the other perfumes available are Solinotes which lets you create your unique signature scent by layering two or three favorite perfumes like a pro (10% off);  Disney fragrances whose collections of scents are bottled in Disney characters (50% off ); Jōvan fragrances (15%); and Aspen For Men (15% off). All the fragrances are exclusively distributed by Rustan Marketing Corp..

Ever Bilena marks 38th year with big sale

TO MARK its 38th anniversary, Ever Bilena treated its customers to the “Great at 38” sale, with prices set at P38 for some products or 38% discounts given to select Ever Bilena, EB Advance, and Careline products. The reception to the sale was such that three-month’s worth of stocks were immediately depleted in one day on the brand’s official pages on Lazada and Shopee. Thousands of shoppers also followed social distancing protocols in malls across the country and patiently lined up to enjoy the discounts on Ever Bilena products. The celebration is not over with more deals on best-selling products like matte lipsticks and makeup collaboration with Kris Aquino on sale for P38 or 38% off extended until April 30.

Montblanc releases new watch

PAYING tribute to the origins of Minerva, Montblanc unveils the new Montblanc 1858 Monopusher Chronograph Origins Limited Edition 100, a re-edition of a 46 mm military monopusher chronograph from the 1930s that was equipped with the calibre 19-09CH. This is a limited edition of 100. When customers or journalists visit the Manufacture museum in Villeret, they are often surprised by the modernity and beauty of a 46 mm Minerva military monopusher chronograph from the 1930s. This timepiece, with its black dial and luminescent vintage elements, served as the main inspiration for the entire Montblanc 1858 collection, hence the name Origins. The new timepiece goes beyond a simple re-edition, keeping key elements of the original model while integrating vintage twists. Equipped with the Manufacture monopusher chronograph calibre MB M16.29, the Montblanc 1858 Monopusher Chronograph Origins Limited Edition 100 features a 46 mm case made of a special alloy of bronze, a distinctive “officer” case back, and a vintage black dial with beige elements. It is completed with a brand-new vintage-style brown Sfumato alligator strap with beige stitching and is strictly limited to 100 pieces. Montblanc is available at Rustans Makati, Rustans Shangri-La, Rustan’s Cebu, Greenbelt 5, City of Dreams, and Resorts World.

Lenovo gets into e-scooter category with M2

AS PUBLIC transportation remains challenged and limited by the pandemic, more Filipinos are turning to affordable alternatives such as motorcycles, bicycles and, yes, e-scooters.

In a suddenly lucrative market, global innovation company Lenovo is bringing in its first offering for daily commuters. The M2 Electric Scooter, which measures 1115mm x 1115mm x 515mm, is positioned as “a smarter, safer, and more stylish alternative for traveling.”

Said Lenovo Philippines President and General Manager Michael Ngan, “The M2 Electric Scooter is in line with Lenovo’s unwavering dedication to constantly innovate and challenge conventions through our products. The ongoing health crisis highlighted the need to connect and do things smartly and safely. Through the M2 Electric Scooter and our other smart devices, Lenovo continues to transform the way people live, work, and play as we reshape expectations and experiences to empower customers with smarter productivity, smarter entertainment, and smarter living for all.”

The M2 Electric Scooter is fitted with a powerful 350W motor and 7.5Ah high-capacity battery — enabling it to reach top speed of 25kph and a distance of up to 30 kilometers in one charge. Lenovo equips the M2 with “an intelligent battery management system that protects the battery against common issues facing electric vehicles: short-circuiting, overcurrent, overcharge, over-discharge, and extreme temperatures.” A cruise control function lets the rider coast with steady speed without having to constantly press the acceleration button. The M2 also has three gears, while supporting “speed shifting” among these gears. It can charge from empty to full in three to four hours — which is 30% quicker versus the competition, said Lenovo Philippines.

Affixed to the handlebar is an LED screen that displays vital information such as speed, mileage, gear used, and battery capacity. Mobile app control and Bluetooth support enable riders to connect M2 to other devices or accessories.

The e-scooter boasts a “triple-brake and triple-damping system” which promise safety and a comfortable ride. A disc and pedal brake complement an electronic brake that cuts the motor’s power to prevent accidents. Absorbing road vibrations are a hidden shock absorption system, spring shock absorption, and honeycomb tire shock absorption.

Lenovo said the M2, made of a magnesium and aluminum alloy for strength and impact resistance, “matches the premium look and enhanced durability found in Lenovo PCs.” It is dustproof and has an IP54 waterproof rating for use even during a light shower and on dusty roads. Maximum payload is 120kg (264.5lbs), and riders can negotiate up to an incline of 15 degrees.

“It’s also small enough to be parked almost anywhere. If there’s no parking space, riders can simply fold and carry the M2 Electric Scooter along with them. It’s built with a one-step folding system, allowing it to be folded quickly in three seconds,” said Lenovo Philippines in a release.

The Lenovo M2 Electric Scooter comes in white or black colors, and is priced at P19,995. For more information, visit lenovo.com/ph.

Earnings and tightened lockdowns lift Puregold stock

INVESTORS snapped up shares in Puregold Price Club, Inc. last week with analysts attributing it to its earnings result and expectations that the tightened lockdown in the National Capital Region (NCR) and surrounding areas would increase demand for retail items.

Puregold was the eighth actively traded stock last week with a total of P1.011-billion worth of 25.351 million shares exchanged, data from the Philippine Stock Exchange showed.

Shares in the Lucio L. Co-led company closed at P40.2 apiece on Friday, up 8.6% from its March 19 closing price of P37 apiece. Year to date, its price has gone down by 2.1%.

“The imposition of NCR bubble this week can be seen to have influenced the market heavily into trading [Puregold stock] into higher prices most likely because investors interpreted the bubble to be something similar to that of the MECQ (modified enhanced community quarantine) and ECQ (enhanced community quarantine), wherein we saw the public stacked weeks-worth of pantry supplies to avoid going out frequently,” Regina Capital Development Corp. Equity Analyst Arielle Anne D. Santos said in an e-mail.

Ms. Santos said speculation of better earnings from the grocery operator also contributed to the surge in the stock’s share price.

In a separate e-mail, Mercantile Securities Corp. Analyst Jeff Radley C. See noted the stock is trading at “oversold levels” in the last few weeks.

“This prompted investors to buy the stock even before the company announced the 2020 earnings,” he said.

Puregold saw its closing price go higher the week before it reported its full-year earnings last Wednesday. From a closing price of P36.20 in March 18, it has climbed 13.3% to P41 in March 25 before dipping to P40.50 on March 26 last Friday to finish last week’s trading.

In disclosure to the stock exchange, Puregold reported an unaudited consolidated net income of P8.05 billion in 2020, an 18.9% increase from its net income of P6.77 billion in 2019. It posted net sales growth of 9.2% to P168.63 billion from P154.49 billion previously.

Puregold Stores network accounted for 73% of the company’s total revenues, while S&R Membership warehouse clubs and S&R New York Style Pizza stores contributed 27%. The company did not disclose specific figures.

The company also reported that Puregold Stores posted a same store sales growth (SSSG) of 2.4% last year, while S&R grocers recorded an SSSG of 8.7%.

Puregold has a total of 470 stores nationwide as of December 2020, including 403 Puregold stores, 20 S&R membership shopping grocers, and 46 S&R New York Style Pizza shops. 

Meanwhile, lockdown restrictions have been tightened for two weeks from March 22 to April 4 as coronavirus disease 2019 (COVID-19) cases have surged. Only essential travel will be allowed to and from Metro Manila and nearby provinces, or the so-called “NCR Plus” bubble.

“For this year, we forecast the company’s topline and bottom line to grow at a 3-year CAGR (compounded annual growth rate) of 6% and 5% respectively, factoring in the likelihood that restrictions would be further eased within this year,” Regina Capital’s Ms. Santos said.

“Puregold’s support can be traced all the way back on its MA50 (moving averages over 50 days) at P37.71. Meanwhile, resistance can be seen to be around P41.85,” she added.

Mercantile Securities’ Mr. See placed the stock’s support and resistance levels at P39.50-P38 and P41.5-P44, respectively.

“We might see a lower revenue for this year due to the increasing competition of online supermarkets and COVID-19 cases,” he said. — Lourdes O. Pilar

Philippine economy at a glance: Where are we now?

Philippine economy at a glance: Where are we now?

How PSEi member stocks performed — March 26, 2021

Here’s a quick glance at how PSEi stocks fared on Friday, March 26, 2021.

Peso to rise on lower imports due to lockdown

THE PESO is likely to appreciate against the greenback due to the shortened trading week and expectations of lower import demand due to the reimposed lockdown in Metro Manila.

The local unit closed at P48.49 versus the dollar on Friday, gaining nine centavos from its previous close of P48.58, data from the Bankers Association of the Philippine showed. It also strengthened by 13 centavos from its P48.62-per-dollar finish on March 19.

The peso appreciated versus the greenback on Friday on the back of market optimism amid anticipation over the passage of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.

President Rodrigo R. Duterte’s signing of the CREATE Act was announced after the market closed on Friday. The tax reform measure will immediately bring down corporate income tax to 25% from 30% and will further slash the rate by a percentage point every year from 2023 to 2027 until it reaches 20%.

Mr. Duterte vetoed some sections of the measure, including one that allows incumbent and future presidents to exempt an investment promotion agency from CREATE’s coverage and another section that increases the threshold of low-cost housing eligible for VAT exemption to P4.3 million from P2.5 million.

Meanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said news of further stimulus in the United States was among the biggest factors that dictated foreign exchange trading last week.

For this week, Mr. Asuncion said the peso may strengthen due to a likely decline in imports amid the Holy Week holidays and the stricter lockdown in the country’s capital and nearby areas.

Mr. Duterte approved the recommendation to place Metro Manila and surrounding provinces Bulacan, Cavite, Laguna and Rizal under the tightest restriction measures starting March 29 until April 4, Presidential Spokesperson Herminio “Harry” L. Roque, Jr. said in a televised briefing on Saturday.

The announcement followed the record 9,595 new cases on Saturday which brought the country’s total to 712,442. Mr. Roque said the renewed lockdown was prompted by the diminished capacity of hospitals amid the surging cases.

Meanwhile, Mr. Ricafort said the release of February budget balance data on Monday may also affect market sentiment.

The Bureau of the Treasury will release its cash operations report for February today. In January, the fiscal gap stood at P14 billion, reversing the P23-billion surplus a year earlier due to lower tax collections and muted spending amid the pandemic.

Mr. Ricafort gave a forecast range of P48.35 to P48.60 per dollar this week while Mr. Asuncion expect the local unit to move around the P48.40 to P48.70 levels. — L.W.T. Noble

PSEi to slump as gov’t tightens restrictions anew

THE REIMPOSED enhanced community quarantine (ECQ) in NCR Plus, which includes Metro Manila and nearby provinces of Bulacan, Cavite, Laguna, and Rizal, amid rising coronavirus disease 2019 (COVID-19) infections is expected to dampen investor sentiment this week.

The benchmark Philippine Stock Exchange index (PSEi) inched down by 36.37 points or 0.55% to close at 6,544.63 on Friday.

Week on week, the index gained 108.53 points from its 6,436.10 close on March 19.

“The market went up 1.7% [last] week mainly on optimism after the status of vaccine rollout and deliveries was presented,” AB Capital Securities, Inc. Junior Equity Analyst Lance U. Soledad said in a Viber message. “The run-up was not supported by heavy volume as investors [stayed] on the sidelines given the spike in daily COVID-19 cases, with active cases at all-time high.”

This week, market sentiment will take a hit from the return of stricter lockdown measures, analysts said.

“The PSEi could correct lower largely due to the one-week enhanced community quarantine in NCR Plus that may reduce production, sales, income or livelihood of hard-hit businesses, industries, sectors that lead to lower valuation for some adversely affected listed companies,” Michael L. Ricafort, chief economist at the Rizal Commercial Banking Corp. (RCBC), said in a text message on Sunday.

China Bank Securities Corp. Research Associate Jason T. Escartin expects the move to “worsen selling pressure,” citing its adverse effect on investor sentiment.

Manila and nearby provinces will return to stricter quarantine measures from Monday, a senior official said on Saturday, as the Philippines battle to contain a surge in COVID-19 cases that has strained hospitals, Reuters reported.

Presidential spokesman Harry Roque said the measures, which will be in place until April 4, will ban non-essential movement, mass gatherings, dining in restaurants. They represent a further tightening of curbs imposed on March 22.

“Given the shortened trading week, which will likely be accompanied by lower trading volumes, and developments over the weekend, we think the PSEi may find some footing in the 6,000-6,200 support zone,” Mr. Escartin said via e-mail.

“Through the trading week, we will likely see investors progressively price in the possible next steps after the week-long ECQ, taking their cue from daily case counts and health-care capacity utilization,” he added.

RCBC’s Mr. Ricafort said the PSEi’s expected slump may be offset by the signing of the Corporate Recovery and Tax Incentives for Enterprises or CREATE Act.

“[It] may reduce the corporate income tax rate of the biggest companies or businesses and correspondingly increase their net income by five percentage points and a bigger 10 percentage points for MSMEs (micro, small and medium enterprises), thereby [helping]… offset the adverse business or economic effects of the one-week ECQ,” he said. — Keren Concepcion G. Valmonte with Reuters

CARS program could be extended by three years

THE GOVERNMENT is considering a three-year extension to the compliance period for automotive companies participating in its incentives program, which was developed to support domestic parts production.

Toyota Motors Philippines Corp. and Mitsubishi Motors Philippines Corp. are participating in the Comprehensive Automotive Resurgence Strategy (CARS) program, which offers fiscal support to car companies that produce in the Philippines 200,000 units of high-volume car models over six years. Mitsubishi has a 2023 deadline for production of its Mirage compact car, while Toyota has until 2024 to produce its VIOS car.

An auto industry group has asked the government to review the conditions for the program after the pandemic caused an industry sales slump.

An interagency group on the CARS program is recommending a three-year extension, targeting the signing of an executive order by the end of June this year.

“We are confident that an executive order on the recommendation of the IAC (interagency committee) for the extension of the compliance period for the CARS program participants would be issued before end of June of this year considering IAC already includes different agencies relevant to issue,” Board of Investments Managing Head Ceferino S. Rodolfo said in an online briefing Thursday.

He added that the required number of cars to be produced and the budget caps will be retained.

“We of course do understand the challenging unforeseen circumstances, including the impact of the pandemic on automotive demand,” Mr. Rodolfo said.

The extended timeline, he said, will also cover investment incurred in the course of refreshing the car models.

“Mas gusto natin ‘yan kasi at least sigurado tayo na dito pa rin gagawin ‘yung succeeding model. (We want that because it ensures that the succeeding models will still be made here),” he said.

Car sales in 2020 declined 39.5% to 223,793 units, according to the Chamber of Automotive Manufacturers of the Philippines, Inc. and Truck Manufacturers Association. — Jenina P. Ibañez

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