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Nickel Asia income climbs 52%

NICKEL ASIA Corp. posted an attributable net income of P4.07 billion for 2020 or a 51.9% increase year on year due to higher ore export prices.

In a regulatory filing on Thursday, the listed company said its total revenues rose 21.5% to P21.77 billion from P17.92 billion in 2019.

“The significant improvement in the realized nickel price of the combined ore exports and ore deliveries to the two plants in 2020 more than offset the slight decline in sales volume and the less favorable (Philippine) Peso to United States Dollar exchange rate,” Nickel Asia said in the disclosure.

Nickel Asia disclosed that it exported 10 million wet metric tons (WMT) of nickel ore in 2020, a 3.9% decline from 10.4 million WMT the year earlier.

Despite the lower ore exports, the export prices rose 45% year on year to $33.99 per WMT in 2020.

Further, Nickel Asia said ore deliveries to the Taganito HPAL Nickel Corp. (THPAL) and Coral Bay Nickel Corp. (CNBC) HPAL plants dropped 2.4% to 8.2 million WMT for 2020, with an average price of $6.22 per pound of payable nickel.

“On a combined basis, the company sold a total of 18.2 million WMT at $22.46 per WMT and 18.8 million WMT at $16.69 per WMT in 2020 and 2019, respectively,” Nickel Asia said.

According to the company, the total operating cash costs for 2020 improved 1% year on year to P10.68 billion. It added that the realized Philippine Peso to United States Dollar exchange rate for ore sales in 2020 fell 5% to P49.15, against P51.72 the previous year.

Martin Antonio G. Zamora, Nickel Asia President and Chief Executive Officer, said the demand for nickel ore did not falter amid the coronavirus disease 2019 (COVID-19) pandemic.

“As Indonesia resumed its ban on direct export of nickel ore at the start of 2020, we realized higher prices for our ore exports,” Mr. Zamora said in the statement.

“In spite of every consequence the global standstill brought, we took care of our people, we focused on our communities, and Nickel Asia survived 2020,” he added.

On Thursday, stocks of Nickel Asia at the stock exchange rose 7.21% or 0.37 centavos to end at P5.50 apiece.

CARMEN COPPER CORP. RESUMES OPERATIONS
In a separate disclosure on Thursday, Atlas Consolidated Mining and Development Corp. announced that its Carmen Copper Corp. (CCC) has received approval from the Department of Environment and Natural Resources (DENR) to restart mining operations in the Carmen Pit.

However, CCC said the approval does not allow the resumption of work at the parts affected by the slide that occurred on Dec. 21 last year.

CCC said it will continue to implement safety measures in the rehabilitation of impacted areas at the pit and is working closely with different regulating agencies and local government units in addressing the ongoing rehabilitation initiatives.

In December, the operations of CCC were suspended after a slide occurred at its mining site in Toledo City, Cebu due to rains aggravated by Typhoon Vicky. The incident killed at least four people.

On Thursday, stocks of Atlas Mining at the stock exchange rose 2.22% or 14 centavos to end at P6.46 each. — Revin Mikhael D. Ochave

Disney crosses streaming milestone, aims to open California parks in late April

LOS ANGELES —  Walt Disney Co.’s Disney+ streaming service has signed up more than 100 million paying subscribers around the world in its first 16 months, Chief Executive Bob Chapek said at the company’s annual shareholder meeting on Tuesday.

Mr. Chapek also said Disney hopes to reopen its California theme parks to limited attendance in late April. The parks were closed a year ago due to the coronavirus disease 2019 (COVID-19) pandemic.

California officials set guidelines that would allow for theme parks in the state to reopen as soon as Apr. 1. Mr. Chapek said it would take a few weeks to call back 10,000 furloughed employees to its two theme parks at Disneyland Resort in Anaheim and train them in new virus safety procedures. In addition, Disney might be able to resume some cruise ship operations in the fall, Mr. Chapek said.

Disney was hit hard by the coronavirus pandemic as theme parks and movie theaters were forced to shut down, but it has impressed Wall Street with the growth of Disney+, which debuted in Nov. 2019. The company is hoping for a comeback at cinemas this year. It currently is holding firm to plans to release Marvel movie Black Widow in movie theaters on May 7, Mr. Chapek said.

Asked if he might replace Kathleen Kennedy, president of Star Wars studio Lucasfilm, Mr. Chapek said he looked forward to her running that unit “for many years to come.” Some fans disliked the storylines of recent Star Wars movies and have argued for a new leader.

The company also aims to reinstate dividend payments, which were suspended during the pandemic, “at some point” in the future, Mr. Chapek said.

Mr. Chapek and nine others were re-elected to the company’s board of directors, according to preliminary vote tallies announced at the meeting, which was held online. They include Executive Chairman Bob Iger, who previously said he will retire from Disney at the end of 2021. — Reuters

Drilon pushes for ‘clearer’ rules on violations of GUIDE Act conditions

A SENATOR on Thursday proposed the inclusion of a provision that would address violations in the conditions and requirements for companies granted investments in the law increasing the funds of government banks to assist distressed firms.

Senator Franklin M. Drilon said there should be a “clearer” set of rules for violations of the conditions for distressed companies that will be granted loans under House Bill 7749 or the proposed Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery or GUIDE Act.

“We should insert some provision in the law which will respond to these kinds of conditions because this is the reality on the ground,” he said in a Senate hearing on Thursday, adding that a shareholders agreement cannot be binding for the board of directors who decide on certain issues which can affect conditions under a loan agreement.

“So my suggestion…is to have a clearer set of rules, in so far as violation of these conditions, conditionalities of the requirements that were earlier enumerated. We wouldn’t know whether this would be in the bill or in the law or in the rules and regulations, but nevertheless, we should address that concern,” he added.

Francis Nicolas M. Chua, first vice president of the Development Bank of the Philippines, said a breach in the shareholders agreement would be subject to civil action or resorting to the exit mechanism under the agreement.

The proposal provides P10 billion to government financial institutions — P2.5 billion to the DBP and P7.5 billion to the Land Bank of the Philippines — for credit under the loan assistance program for qualified micro, small, and medium enterprises and for the creation of a special holding company (SHC).

Under the bill, the two banks will invest in or enter into a joint venture agreement to incorporate a special holding company which will help rehabilitate “strategically important companies” affected by the pandemic that are experiencing “temporary solvency issues.”

National Treasurer Rosalia V. de Leon said there are remedies if the conditions under the agreement were violated by a company, noting that a firm that sought investment from the SHC should have a “credible and time-bound recovery plan” that can be monitored.

“If they are faltering in these commitments, then there would be remedies that would be placed in the agreement between the SHC and the company in terms of how the SHC would legally also exit from their investment in the company,” she said in the hearing.

The measure states that an investee company should not be involved in any tax-related cases in court for tax collection or tax evasion, must not be a debtor in any bankruptcy proceeding and must be capable of being rehabilitated.

The agreement between the SHC and the investee company should include conditions that the investee company must not reduce the number of employees beyond the prescribed percentage, shall not issue cash dividends during the term of investment, and increase salaries and benefits of senior officers or board members.

The investee company should likewise not incur excessive expenditures and the ownership of the SHC “shall not be diluted,” with the bill also including a provision protecting the value shares of the holding company from market transactions, among other conditions.

The measure also provides for the creation of a joint congressional oversight committee to monitor the implementation of the proposed law.

The House of Representatives approved the measure on third reading on Feb. 9. — V.M.M. Villegas

Corporate governance in the Philippines

Good governance remains a key ingredient for the continued economic growth in the ASEAN region. In 2011, the ASEAN Corporate Governance Scorecard (ACGS) was developed to provide the methodology in assessing the corporate governance performance of publicly listed companies. The program aims to enhance the image of publicly listed ASEAN companies and their ability to attract investments as well as improve the image of capital markets of ASEAN.

Six countries — Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam — participate in this initiative.

The scorecard covers the following five areas:

• rights of shareholders;

• equitable treatment of shareholders;

• role of stakeholders;

• disclosure and transparency; and

• responsibilities of the board.

The assessment starts with the selection of top 100 publicly listed companies in terms of market capitalization. Domestic review is conducted on the basis of publicly available information from annual reports and company websites. Disclosure must be clear, unambiguous and sufficiently complete. The results of the initial domestic assessment will undergo peer review within the region to minimize discrepancies and achieve consistent assessment applied by corporate governance experts.

There are bonus points for companies that go beyond minimum standards and penalties for companies with poor practices. For instance, bonus points are awarded when a company has at least one independent female director, implemented secure electronic voting in absentia at the general meetings of shareholders, financial statements are released within 60 days from yearend. Penalties are given when a company has faced any sanctions by regulators for failure to make announcements within the requisite time period for material events or when there are violations of any laws pertaining to labor, employment, consumer or environmental issues.

The corporate governance recognition was held recently. SEC Chairman Emilio Aquino recounted the achievements of the country in the area of corporate governance and said the ACGS initiative has fortified the cooperation among the ASEAN member countries and sharpened their focus on the goal of branding the region as an asset class based on corporate governance.

ICD Chairman Rex Drilon II explained the coronavirus pandemic is radically changing the rules of corporate governance. Since the onset of this crisis, increased director time commitment has been devoted as boards were confronted with many challenges requiring urgent attention. Corporate boards are faced with a series of difficult decisions few have faced before. There is greater emphasis placed on good governance to address the uncertainties of today’s environment.

Thailand had the highest average score of 96.60 points, followed by Malaysia with an average of 94.99 points and Singapore at 88.27 points. The Philippines scored an average of 77.24 points (from 75.47 in 2018), while Indonesia had 70.80 points and Vietnam had 54.55 points.

There were 63 Philippines companies conferred with the ASEAN Asset Class Award. Globe Telecom, Inc.; Ayala Land, Inc.; SM Prime Holdings, Inc.; SM Investments Corp.; Belle Corp.; and China Banking Corp. received the coveted Four Golden Arrow Award for scoring 110 to 119 points. Three Golden Arrow Awards for scoring 100 to 109 points were given to Ayala Corp.; BDO Unibank, Inc.; DMCI Holdings, Inc.; GT Capital Holdings Inc.; Manila Electric Co.; Manila Water Co.; and Philippine National Bank. The Two Golden Arrow Award was given to companies for scoring 90 to 99 points and the One Golden Arrow Award went to companies with 80 to 89 points.

Clearly, the awardees are serious in their commitment to upholding good governance, particularly in promoting accountability, transparency, and ethics in conducting their business and affairs.

SEC Commissioner Kelvin Lee encouraged the awardees to remain committed to the work ahead. Although the country’s performance has been steadily improving, the work is only just beginning. He said the Philippine corporate sector shall continue to prioritize good corporate governance with the aim of propelling the economy towards long-term sustainable development.

Happy International Women’s Day! Congratulations to the Agri Champ Ambassadors:

Bea Atanacio (Kabataang Filipino Farmer) for Luzon, Dalareich Polot (Bohol’s Chocolate Princess) for Visayas, with Dayang and Alyssa Sahali Tan (Organic Seaweeds Chips) from Mindanao. The goal is to network with other young progressive farmers in the country and represent the voice of the youth in agri food security. Their mentors are Cherrie Atilano and Ginggay Hontiveros Malvar, both of the Kapatid Agri Mentor Me program. I was happy to host them in Flor’s Garden as arranged by Disnee Dioso and Mat Maderazo of Planters Products, with a surprise visit from no less than Agriculture Secretary William Dar.

 

Flor Gozon Tarriela is chairman of the Philippine National Bank, PNB Capital and PNB Mizuho Leasing & Finance Corp. She is a former Undersecretary of Finance and the first Filipina vice president of Citibank N.A. She is a trustee of FINEX and an Institute of Corporate Directors fellow.

Four local firms join pre-negotiation talks for Malaya plant

FOUR Filipino firms took part in the pre-negotiation conference for the sale of the 650-megawatt (MW) Malaya Thermal Power Plant and its underlying land in Pililla, Rizal, according to the state-led Power Sector Assets and Liabilities Management Corp.

In a press release shared late Wednesday, PSALM said that the four were Sta. Clara International Corporation, VBB Trucking Trading and Consultancy Services, Inc., Fort Pilar Energy, Inc., and AC Energy Philippines, Inc.

The pre-negotiation conference, which was held on Tuesday, gave the interested bidders a chance to discuss concerns and issues about the terms of the Malaya plant’s third round of negotiated sale.

“We welcome the inputs and comments from the interested parties on the terms of the negotiated sale process. Their active participation in the pre-negotiation conference makes us very optimistic that they will participate in the Offer Submission Deadline this coming April,” PSALM President and Chief Executive Officer Irene Joy J. Besido Garcia was quoted as saying in a statement.

The offer submission deadline for the Malaya plant and its underlying land is on April 23 at 12:00 p.m.

Previously, PSALM identified five firms, including Chinese construction company China Gezhouba Group Co., Ltd, which expressed their interest in the negotiated sale.

The minimum price for the Malaya plant and its assets was reduced to around P1.85 billion from P2.01 billion, which was the minimum price set in the second round of negotiated sale.

The plant is made up of two power generating units with a capacity of 300-MW and 350-MW, respectively. The facility is currently being dispatched as a “must-run” unit or a generating unit that is required to operate only when needed for energy security, according to the Wholesale Electricity Spot Market.

The Department of Energy (DoE) previously said that the mounting bill for the Malaya plant had forced PSALM to pursue a negotiated sale for it, citing unsustainable maintenance costs and years of failed auctions.

According to its 37th status report on the implementation of Republic Act No. 9136 or the Electric Power Industry Reform Act or 2001, the DoE said that it costs around P1.2 billion a year to maintain the plant. The figure was based on the Malaya plant’s upkeep between 2010 to 2019.

In September, PSALM declared a failure of its third-round auction to privatize the power plant and its assets, since the two pre-qualified bidders Panasia Energy, Inc. and AC Energy Philippines did not submit a bid. The auction floor price at that time was P2.19 billion, less than half of the previous round’s minimum price of P4.48-billion.

By selling its assets through orderly means, PSALM aims to liquidate all of the National Power Corp.’s financial obligations and stranded contract costs in an optimal manner. — Angelica Y. Yang

Why workers and their managers dislike HR

I’m the human resources (HR) manager of a small enterprise with 230 workers. I’ve been holding the job for five years and have experienced criticism from people who dislike some of our management policies. The trouble is that all complaints are directed against my person and not to top management, which created and approved those policies. The latest incidents involve the discovery of graffiti targeted at me in the men’s toilet and a poison pen letter in the suggestion box. What’s wrong with us? — Tasteless Bud.

A husband and wife were leaving the office of a marriage counselor. The husband turned to his wife as they walked to their car: “Did you understand what the counselor said about being tactful? Did you get it through your thick skull?” That story, in essence summarizes why some people hate HR — and dealing with it is all about diplomacy.

I experienced this personally during my corporate days in people management decades ago. I was also the target of insults, many below the belt, from workers who didn’t understand my work. When I brought the issue up to my boss at the time, I received a reassuring answer: “Don’t worry about it. HR is not in a popularity contest.”

I wish my boss could have told me how better to manage the situation. But I understood that he meant to take things in stride, and to do what’s best under the circumstances.

True enough, while HR leaders can’t control everything, it helps to create and maintain a work environment where dissent and diversity are cherished corporate values that people can use towards a mutually-profitable cooperation system.

No matter what you do or where you do it, an HR manager like you should work with a clear sense of purpose. You should explain HR’s mission in terms of serving both employees and management needs while acting with integrity and in the best interest of the organization.

COMMON MISTAKES
In 2005, Keith Hammonds wrote a long, scathing article, “Why We Hate HR.” Quoting an unidentified management professor, he claims the “best and the brightest don’t go into HR.” Hammonds says HR practitioners “have ghettoized themselves literally to the brink of obsolescence” as many of their jobs like hiring, payroll, benefits, retirement and other administrative tasks are increasingly being farmed out to service providers who can handle such tasks at lower cost.

“What’s left is the more important strategic role of raising the reputational and intellectual capital of the company — but HR is, it turns out, uniquely unsuited for that.”

You might ask: How valid is a 16-year-old article in today’s environment? Are those claims applicable in the Philippines? The short answer to those two questions is a resounding yes. Speaking of the Filipino context, let me list the most common mistakes that many HR people have been making to unwittingly reveal their incompetence:

One, hiding behind the mantle of management prerogative. Instead of explaining the rationale of a certain policy, HR people may simply brush off complaints and tell workers it’s the employer’s right to manage the organization as he sees fit. There are no questions to be entertained. Unless the organization is forced to go before court, HR should avoid using “management prerogative.” It antagonizes a lot of people. Be more diplomatic.

Two, becoming a hive of uncritical thinkers and “yes men” or “yes women.” Many of them are subservient to management, and create and implement policies even if they are immoral or illegal. HR sometimes implements such programs without offering better solutions to top management. The perception may be that HR is too arrogant and lazy to actively listen to employees and fail to address issues from various angles. Even if a certain policy has proven to be outdated, HR can sometimes cling to their mistaken beliefs, if only to tell the world who’s in control.

Three, operating without a compass. Management guru Dave Ulrich tells HR people they must perform the following jobs, not necessarily in order: business partner, administrative expert, employee champion, and change agent. The trouble is that they don’t even know that Ulrich’s ideas exist! It’s like not knowing that your long-time girlfriend is a vegetarian or if she holds a college degree. This happens because many HR people are not strategic-minded and rely on a trial-and-error approach copied from inexperienced mentors.

Four, acting like the police, determined to catch violations. That’s why I don’t like people with police or military backgrounds in HR. You can’t blame them. Their experience and orientation are focused on catching wrongdoers. Instead of focusing on nurturing people to become highly motivated, they direct their attention to catching them doing wrong. It’s one of the reasons morale can plummet, manifested in high rates of absenteeism, tardiness, and job turnover.

Last, being oblivious to continued process improvement. This is related to Ulrich’s framework. In particular, it’s about Lean HR or the application of kaizen and lean thinking in the performance of HR functions. Many HR people don’t know what to do to eliminate operational waste. For example, I’ve seen job vacancy announcements that require applicants to submit unnecessary documents like birth certificates, an NBI clearance, a barangay certificate, or an SSS identification card in the early stages of the hiring process.

Are these items proof of competence or expertise? Shouldn’t these documents be required only of the top two applicants in the shortlist?

IMPORTANT FACTORS
Given my bias against police officers doing HR work, I still believe it doesn’t matter what an HR practitioner’s educational attainment or background is, as long as they know how to set proper goals and engage in active two-way communication, build mutual trust and respect, and foster accountability and responsibility.

Some HR people are only good at one or two of these things. They could be strong in goal-setting or fostering accountability, for instance. What’s important is a desire to identify and continue assessing what’s working and what’s not. This can only happen if HR knows how to listen by consulting employees, which may include regular town hall meetings, suggestion programs and quality circles, some form of labor-management cooperation system, and periodic morale surveys.

So, when an HR person is not tactful or diplomatic in dealing with people, it’s pretty certain he or she will not succeed in people management.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

Entertainment News (03/12/21)

St. Patrick’s Day celebration

JAMESON Irish Whiskey and The Palace will be hosting virtual St. Patrick’s Day festivities on Facebook on Mar. 13. The party will feature DJ Ron Poe, Curtismith, August Wahh, Tala, Super Mikki, Leanne and Naara, and Marga on the Mic. Jameson has also partnered with local brands Don’t Blame The Kids (DBTK) and Vamos, who have come up with exclusive limited-edition Jameson St. Patrick’s Day merchandise. Jameson also tapped local artist Jap Mikel to create a box design just for St. Patrick’s Day called “Twilight City,” which depicts the best parts of life in Manila. Get Jap Mikel’s limited-edition St. Patrick’s Day box design upon purchase of a bottle of Jameson Irish Whiskey at Boozy and in major supermarkets. For more information and updates on Jameson products, visit facebook.com/JamesonWhiskeyPH.

First Yaya premieres on GMA7

A new primetime romantic comedy, First Yaya tells the story of Vice-President Glenn Acosta (Gabby Concepcion) and the romance that blooms between him and Melody (Sanya Lopez), the nanny of his children. Joining the cast are Pancho Magno, Cassy Legaspi, Joaquin “JD” Domagoso, and Pilar Pilapil. Directed by LA Madridejos, First Yaya’s pilot episode airs on Mar. 15 after 24 Oras.

Young adult series Gen Z on TV5

TV5’s NEW young adult series Gen Z will start airing on Mar. 14. Produced by Cignal Entertainment, Inc. with Regal Entertainment. Inc., the  family drama depicts how the younger generation navigates through daily life and how older generations can learn to connect better to them. The show follows brothers, Jojo (Jerome Ponce) and Kiko (Kent Gonzales), as they enter the world of adulthood along with their friends Matet (Jane Oineza) and Rico (Darwin Yu). Joining the young cast are veteran actors led by Joey Marquez, Angeli Bayani, and Teresa Loyzaga. Gen Z airs on Sundays, 9 p.m., on TV5. Catchup episodes air on Sundays, 6 p.m., starting Mar. 14 on One Screen Cignal TV CH.9 and SatLite CH. 35.

Pink Sweat$ releases new album

AMERICAN singer-songwriter Pink Sweat$ (real name: David Bowden) has released his new single and the music video for “Heaven,” a track from his latest full-length album Pink Planet, under Atlantic Records. Pink Planet is a collection of six previously released singles from the artist’s 2020 EP The Prelude, and eight brand new tracks. Pink Sweat$ rose to international fame with his original song “At My Worst,” the music video of which garnered more than 50 million views and counting on YouTube. He also recently dropped a live performance video and lyric video of the track “17” (also off of Pink Planet) which features Filipino singer Moira Dela Torre. The music video can be seen at https://www.youtube.com/watch?v=wwD_tEU0eXk. For more information on Pink Planet, visit https://press.atlanticrecords.com/pink-sweats/.

SB19 releases new single ‘What?’

SONY Music Philippines has released boy band SB19’s new single “What?” “The song ‘What?’ is really different from what we have done before,” the group’s main rapper and lead vocalist Pablo says in a statement. “This one has a more aggressive take to it compared to our previous songs, so I really had to force out the ‘oomph’ in the voices of the members. I was really meticulous with the recordings, but so were they. That’s why we would record ‘til morning and until everyone was satisfied with their parts. The feeling had to be there.” The music video of “What?” shows SB19 in battle mode as they claim freedom in a fictional, post-apocalyptic war zone. “What?” is the first single off the award-winning group’s yet-to-be-revealed debut album, Get In The Zone. The song is available on all digital platforms worldwide via Sony Music Philippines.

Hikaru Utada returns with music video

JAPANESE pop star Hikaru Utada has dropped her long-awaited new single “One Last Kiss,” which serves as the theme song for the anime film, Evangelion: 3.0+1.0 Thrice upon a Time. The song was released along with its music video of “One Last Kiss” which was directed by Hideaki Anno who is the author, screenwriter, and director of the film. The music garnered more than 200,000 views on YouTube in the first 30 minutes after its release, and amassed over a million views in less than a day since it premiered on Mar. 9.

Ylona Garcia releases single

SINGER Ylona Garcia was only 18 when she earned her first gold record in 2019. Since then, the hits have not stopped coming as the singer-actress continues to expand her musical horizons and explore diverse genres. She is now setting her sights on the global landscape under the umbrella of label Paradise Rising. Her debut release for the label, “All That,” is an infectious dance-pop number that highlights Ylona’s soulful vocals and has a choreographed music video directed by Suzanne Kim. Paradise Risin is the result of a collaboration between the Philippines’ telecommunications company Globe, and 88rising, a pioneering music and media collective synonymous with elevating Asian talent from East to West. The label focuses on highlighting Filipino talent on a global scale and will serve as a platform to establish a presence for Philippine artists in the West and globally through music distribution, music rights management, and artists development. Ylona is one of the initial artists signed by the label, along with American hip-hop singer Guapdal 4000. For updates, visit bit.ly/paradiserisingfacebook, bit.ly/paradiserisinginstagram, and bit.ly/paradiserisingtwitter.

February and year-to-date 2021 car sales

CAR SALES in February declined by 12% compared with the same month last year, the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) said in a report on Thursday. Read the full story.

February and year-to-date 2021 car sales

How does the Philippines compare with its neighbors in terms of administered COVID-19 vaccination doses?

How does the Philippines compare with its neighbors in terms of administered COVID-19 vaccination doses?

How PSEi member stocks performed — March 11, 2021

Here’s a quick glance at how PSEi stocks fared on Thursday, March 11, 2021.


Peso strengthens on data showing slower US core inflation, higher PHL reserves

THE PESO strengthened versus the greenback on Thursday following slower-than-expected core inflation in the US and the increase in the Philippine dollar reserves.

The local unit closed at P48.50 per dollar yesterday, appreciating by 10 centavos from its P48.60 finish on Wednesday, data from the Bankers Association of the Philippines showed.

The peso opened Thursday’s session at P48.57 per dollar. Its weakest showing was at P48.59 while its strongest was at P48.465 versus the greenback.

Dollars traded slumped to $792.65 million yesterday from $1.015 billion the day prior.

The peso gained following positive inflation data out of the United States, a trader said.

“The peso strengthened as global inflation concerns eased following the weaker-than-expected US core inflation report for February 2021,” the trader said in an email.

US core inflation rose 1.3% on a year on year basis in February, easing from the 1.4% print in January, Reuters reported. The core consumer price index, which excludes volatile food and energy components, inched up 0.1% month on month in February after being steady from December to January.

Meanwhile, US headline inflation rose 1.7% year on year last month, quicker than the 1.4% in January. This was mainly due to higher oil and food prices.

The US Federal Reserve has hinted it would tolerate higher prices as long as inflation remains below its two percent target.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort  attributed the peso’s appreciation versus the dollar to the increase in the country’s gross international reserves.

BSP Governor Benjamin E. Diokno told reporters in a Viber message that dollar reserves reached $109.1 billion as of end-February. This is higher by 0.27% from the $108.799 billion seen as of January and by 23.7% from the $88.187 billion logged at end-February 2020.

The trader gave a forecast range of P48.40 to P48.60 per dollar while Mr. Ricafort expects the local unit to move within the P48.45 to P48.55 band. — LWTN with Reuters

PHL stocks drop as some cities reimpose curfews

PHILIPPINE SHARES declined on Thursday after several cities in Metro Manila imposed curfews anew in an attempt to curb the spread of the coronavirus disease 2019 (COVID-19).

The benchmark Philippine Stock Exchange index (PSEi) dropped by 89.14 points or 1.3% to close at 6,719.18 on Thursday, while the broader all shares index went down by 27.92 points or 0.68% to end at 4,050.43.

“Local shares were sold off as the number of COVID-19 cases have forced local government units to reimpose curfews to safeguard against further spread [of the virus],” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“In Metro Manila in particular, the PNP intensified police deployment in the key cities with a surge in cases such as Malabon, Navotas, and Pasay,” Mr. Limlingan said.

“Selling pressure picked up after curfews were imposed… Investors were reminded of the potential negative economic impact of these tighter restrictions,” AAA Southeast Equities, Inc. Research Head Christopher John J. Mangun said via e-mail.

Cities in Metro Manila, namely San Juan, Muntinlupa, Caloocan, and Parañaque, have imposed curfews again to restrict movement due to the renewed surge in COVID-19 cases in the country. Metro Manila mayors are also reviewing the possibility of implementing uniform curfew hours.

COVID-19 infections in the Philippines have breached the 600,000 mark, with over 2,000 new cases reported daily over the past days.

Meanwhile, Regina Capital’s Mr. Limlingan also noted the increase in US stocks overnight on positive core inflation data.

The Dow Jones Industrial Average rose 464.28 points or 1.46% to 32,297.02; the S&P 500 gained 23.37 points or 0.60% to 3,898.81; and the Nasdaq Composite added 4.99 points or 0.04% to 13,068.83.

Back home, majority of sectoral indices closed in the red on Thursday, except for mining and oil, which rose by 302.39 points or 3.55% to 8,818.08; and property, which increased by 2.56 points or 0.07% to 3,377.20.

Meanwhile, holding firms declined by 161.41 points or 2.27% to 6,920.95; industrials slumped by 108.16 or 1.24% to 8,567.83; services went down by 13.74 points or 0.93% to 1,458.24; and financials lost 8.02 points or 0.56% to end at 1,414.67.

Value turnover declined to P8.58 billion on Thursday with 5.05 billion shares switching hands, from the P11.07 billion with 9.14 billion issues on Wednesday.

Advancers bested decliners, 120 versus 112, while 39 names closed unchanged.

Net foreign selling went up to P808.82 million on Thursday from the P78.87 million logged the previous day.

AAA Southeast Equities’ Mr. Mangun said the index may continue to decline as uncertainties continue to cloud investor sentiment.

“The blue chip index may continue lower as the general sentiment deteriorates,” Mr. Mangun said. — K.C.G. Valmonte