Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 7120

Megaworld to develop P40-B Palawan township

SAN VICENTE, PALAWAN

MEGAWORLD Corp. will be spending P40 billion to develop an eco-tourism township in Palawan in the next 10 to 15 years, Andrew L. Tan’s listed property company said in a statement on Monday.

“As we grow our sustainable developments portfolio, this new township in the beautiful town of San Vicente in Palawan will showcase the best of sustainable tourism and green living,” said Kevin Andrew L. Tan, chief strategy officer of Megaworld.

Paragua Coastown will be located in a 462-hectare property that will feature the beaches along the San Vicente coastline, including Port Barton. The development’s name took inspiration from Palawan’s old name, Paragua.

The first area to be developed in the project is around 83 hectares of land in Kemdeng, which has its own beaches.

“More than just sustainable tourism, our vision for this expansive Palawan property is to provide an opportunity to those who want the island life to live and even raise their families here,” Mr. Tan said. 

“Aside from the preserved natural surroundings of the beach, mountains and cliffs of San Vicente, we will also provide the facilities and amenities for holistic wellness for our future residents,” he added. 

San Vicente town is said to have the longest white-sand beach in the country and the second-longest beach in Southeast Asia. Its Long Beach spans 15 kilometers of coastline, which is said to be three times longer than Boracay’s White Beach. 

Paragua Coastown will have hotels and resorts, health and wellness sanctuaries, a cultural center, educational institutions, a boutique hotel district, and a shophouse district.

It will also have residential developments like private villas, serviced apartments, and themed residential villages.

The township will also feature a mangrove reserve park.

“While we transform it into a world-class development, we also commit to the preservation of the island’s biodiversity,” Mr. Tan said.

The township is located a few minutes away from the San Vicente Airport, which has regular flights to and from Manila and Clark.

Paragua Coastown will be Megaworld’s 27th township. The property developer has integrated urban townships, lifestyle communities, and estate projects located across Metro Manila, Cebu, Iloilo, Boracay, Batangas, Cavite, Davao, Laguna, Las Piñas City, Rizal, Negros Occidental, Pampanga, and Parañaque City.

Megaworld shares at the stock exchange declined by 1.71% or five centavos on Monday, closing at P2.87 apiece. — Keren Concepcion G. Valmonte

Converge stocks to be traded in US markets via ADRs

LISTED fiber internet provider Converge ICT Solutions, Inc. announced on Monday that it will soon be traded over the counter in the United States financial markets in the form of unsponsored American Depositary Receipts or ADRs.

Citing a filing with the US Securities and Exchange Commission, Converge told the local bourse on Monday that “the total American Depositary Shares (ADS) registered amounted to 50 million ADS for a maximum offer price of $5 each or a total aggregate offering price of $2.5 million,” or approximately P125 million.

“An ADR is a negotiable security that represents securities of a foreign company and allows that company’s shares to trade in the US financial markets,” Converge noted.

“ADRs represent an easy, liquid way for US investors to own foreign stocks. An unsponsored ADR is an ADR issued by a depositary bank without the involvement, participation, or consent of the foreign company it represents ownership in.”

Given that Converge has no participation in the issuance, it is expected to have no direct impact on the company, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a phone message when sought for comment.

“We may watch out how these unsponsored ADRs will be received by the market. If there is strong demand seen, then it would reflect robust confidence towards the company,” Mr. Tantiangco added.

In an e-mailed statement, Dennis Anthony H. Uy, chief executive officer and co-founder of Converge, said: “We welcome this development as it opens up another channel for US investors to invest into Converge shares. This signals the confidence of an increasing number of investors in the continued strong growth of the company as we continue to reach the unserved and [underserved] areas in the Philippines.”

Converge aims to cover 55% of Philippine households by 2025. It recently launched its services in Cebu province and Davao City.

The company is also expanding the rollout of its fiber optic cables in the Cordillera Autonomous Region from Benguet province to Kalinga and Mountain Province.

According to its latest data, Converge has reached 32.5% coverage, or 8.3 million homes, in the Philippines as of end-June 2021.

Converge shares closed 0.14% lower at P34.45 apiece on Monday. — Arjay L. Balinbin

Vivamax earmarks P1B for online content 

Lockdowns lead to focus on change, more difficult shoots, and scripts that avoid mentioning the pandemic

VIVA Entertainment was set to produce about 40 films in 2020 when the pandemic hit and the lockdowns started. So, the entertainment company decided to put its P1-billion investment earmarked for films into content for streaming services.

“The pandemic caused the shift to digital to accelerate across all industries,” Vivamax Chief Operating Officer Ronan de Guzman told BusinessWorld in an e-mail. “For us, the service of entertainment had to continue amidst the pandemic and in spite of the challenges faced by our world.”

In Jan. 2021, Vivamax was launched after seven months of planning. It launched with 500 titles from its library and added then Tagalized Hollywood and Asian films.

Mr. De Guzman said that the P1-billion investment is allocated for exclusive content and that “the level of production spending will only increase every year as Vivamax grows.”

FOR THE PINOY AUDIENCE
From the 40 titles intended for theatrical release, Vivamax has increased its target to 60 titles for online streaming over the next 12 months.

In an online interview with BusinessWorld, Viva Entertainment executive Vincent del Rosario stressed that original content is important for growth.

“Another thing that we learned is dapat meron kang ino-offer na hindi available sa ibang platform. Through the originals, nakita namin na attraction siya sa mga subscribers (Another thing that we learned is you have to offer original content which is not available in other platforms. Through the originals, we found that it is an attraction to subscribers),” Mr. Del Rosario said. He added that new titles — whether a film, a series, a documentary, or a concert — are released weekly.

Mr. Del Rosario also noted that Vivamax recently saw an increase to 800,000 subscribers from 600,000 in its first six months. That made the platform the No.1 app on Google Play. “We were surprised, because obviously our targets weren’t high when we started.”

With the focus on creating content that would appeal to the masses, Mr. De Guzman noted that majority of their subscribers are between the ages of 18 to 35 with “a 50-50 male-female profile.”

“Our data estimates show 56% are watching local movies while 14% watch Hollywood and Korean movies,” he said. “Comedy, romance, and concerts are appreciated by our audience.”

When it comes to shooting and producing new films, Mr. Del Rosario admitted that filmmaking during a pandemic while observing health protocols is more difficult and expensive. The actors and crew observe a quarantine period prior to the lock-in shoot and must accomplish their shots prior to curfew.

Currently, Vivamax has 15 titles in production.

“We avoid time stamping our movies with the mention of the pandemic because we think that it needs a long shelf life,” Mr. Del Rosario said. “When we hear pitches from writers and directors, many are pandemic-related. So, we give it back to them. We ask them to avoid… putting a time reference on the film.”

Upcoming titles on the platform include Yam Laranas’ romantic film Paraluman, starring Rhen Escaño and Jao Mapa; Darryl Yap’s romcom Ang Manananggal na Nahahati ang Puso, starring Aubrey Caraan and Marco Gallo; and Mes De Guzman’s drama Ang Pamilyang Hindi Lumuluha, starring Sharon Cuneta.

FUTURE PROJECTS
Vivamax also plans to extend its presence in Visayas and Mindanao and work with regional artists and professionals.

“We have big plans to grow the content that emanates from Visayas and Mindanao,” Mr. Del Rosario said, adding that two projects were already greenlit and are pending for production.

“This opportunity makes us happy because we get to work with other producers,” he said.

“The streaming business will continue to grow exponentially in the next years. Entertainment viewing will be decided upon by the audience based on occasion not just location,” Mr. De Guzman said on the outlook for entertainment consumption.

“Free to air will continue to be relevant as an occasion in the home. Cinema will continue as part of a social occasion. Video streaming will be consumed on a more personal ‘alone time’ basis,” he added.

A Vivamax subscription is available on a variety of plans ranging from one week to six months long, with prices ranging from P49 to P3,699 The app is available on the Apple App Store, Google Play, and AppGallery. — Michelle Anne P. Soliman 

Digitalization may cut carbon emissions from construction

PHILIPPINE STAR/ MICHAEL VARCAS
The Philippines’ construction industry is expected to drive economic recovery this year with a growth rate of 8.3%. — PHILIPPINE STAR/ MICHAEL VARCAS

By Angelica Y. Yang, Reporter

CONSTRUCTION FIRMS must consider using modern technologies and digital systems if they want to lessen carbon emissions and become more productive, according to a Finnish-based startup that develops artificial intelligence (AI) technologies.

“Making more use of modern technologies would make the construction industry more profitable and have better productivity, which would also decrease the carbon dioxide emissions of the industry,” Aku Wilenius, chief executive officer and co-founder of Caidio, told BusinessWorld through a public relations firm last week.

For him, the use of automated, digital quality control systems can lessen concrete waste. He added that there was a need to adopt digital working methods, tools and technologies to overcome the sector’s “relatively low profitability and productivity.”

“Today, most of the tasks in construction are implemented very traditionally by using manual working methods,” Mr. Wilenius said.

Caidio develops AI solutions which optimize the quality and productivity of global concrete construction. The startup was also featured in the Asian Development Bank’s Ventures’ “Climactic,” a series dedicated to improving Asia’s climate-resilience.

A recent report from the United Nations Environment Programme showed that global material use will surge more than two-fold by 2060, with the construction sector comprising a third of this increase. It also noted that the production of concrete is expected to contribute to 12% of global greenhouse gas emissions in 2060.

One of the raw materials used in making concrete is cement, which Mr. Wilenius described as a significant contributor to carbon dioxide emissions because of how it is made.

“Producing cement involves heating limestone, sand, and clay at very high temperatures, which is a very energy-intensive process creating a lot of carbon dioxide. The more cement one uses in producing concrete, the more carbon dioxide the concrete contributes to our atmosphere, driving climate change,” he said.

Sought for comment on what is being done to reduce carbon emissions in concrete production, the Caidio executive said that firms around the world are actively studying the use of cement alternatives such as fly-ash, a fine powder derived from the burning of coal.

Other startups are looking at using “Carbon Cure,” a developing technology which injects and locks carbon into concrete, he added.

In its July 2021 outlook, the consultancy Market Research Southeast Asia firm estimated that the Philippines’ construction industry will spearhead economic recovery this year with a growth rate of 8.3% driven by infrastructure investments amounting to $24.4 billion.

2GO aims to cut business costs, improve efficiency

2GO.COM.PH

2GO Group, Inc. said on Monday that it is hoping to cut business costs and improve operational efficiency by investing more in technology.

“These investments are part of the corporation’s strategy to rapidly modernize its capabilities to improve operational efficiency, reduce business costs, better meet the needs of its customers and improve overall customer experience,” 2GO told the stock exchange, referring to its P150-million investment in digitalization and automation.

In an e-mailed statement, the company said its subsidiary 2GO Express, Inc. has invested in new technology that boosts efficiency, speeds up processing times, and makes it possible to increase reliability while scaling up.

“Investments in automated sorting machines in its hub facilities will now facilitate the processing of more than 140,000 parcels a day, thereby granting the faster delivery of parcels to consumers,” 2GO noted.

2GO Express also uses a new technology that allows customers to track their shipments in real time to support their planning and consumption.

The group trimmed its attributable net loss for the first half of the year to P599.8 million from a loss of P730.5 million in the same period a year earlier.

First-half revenues fell 14.3% to P7.8 billion from P9.1 billion in the previous year.

2GO attributed its net loss for the first six months to “the continued slowdown in the economy brought about by the… pandemic.”

2GO shares closed 1.85% higher at P8.26 apiece on Monday. — Arjay L. Balinbin

Ted Lasso, The Crown win top Emmy Awards on streaming heavy night

THE CAST AND CREW MEMBERS of comedy series Ted Lasso pose for a picture with their awards at the 73rd Primetime Emmy Awards in Los Angeles, US, Sept. 19. — REUTERS

LOS ANGELES — Royal drama The Crown and feel good comedy Ted Lasso nabbed the top prizes at television’s Emmy awards on Sunday on a night dominated by streaming shows, British talent, and rare wins by women.

Chess drama The Queen’s Gambit was named best limited series and tied with The Crown for the most wins overall at 11 apiece.

The best drama series win for The Crown gave Netflix its biggest prize so far, while Apple TV+ entered streaming’s big league with the best comedy series win for Ted Lasso. Neither Netflix nor Apple TV+ had previously won a best comedy or best drama series Emmy.

Jason Sudeikis, the star and co-creator of Ted Lasso, was named best comedy actor. The show also brought statuettes for Britons Hannah Waddingham and Brett Goldstein for their supporting roles in the tale of a struggling English soccer team that won over TV fans with its folksy humor during the dark days of the coronavirus pandemic.

“This show is about family. This show’s about mentors and teachers and this show’s about teammates. And I wouldn’t be here without those three things in my life,” Mr. Sudeikis said on Sunday.

Despite a nominees list that boasted the strongest showing in years for people of color, only a handful emerged as winners.

They included Britain’s Michaela Coel, who won for writing the harrowing sexual assault drama I May Destroy You in which she also starred and directed; RuPaul, host of the competition show RuPaul’s Drag Race; and the cast of hip hop Broadway musical Hamilton, which won the Emmy for variety special after it was filmed for television.

Dancer, singer and actress Debbie Allen was given an honorary award celebrating 50 years in show business. “It’s taken a lot of courage to be the only woman in the room most of the time,” Ms. Allen said.

It was a good night for women, and for Britons.

“Write the tale that scares you, that makes you feel uncertain, that isn’t comfortable,” said Ms. Coel, who dedicated her Emmy to sexual assault survivors.

Lucia Aniello got a rare directing win for a woman for the comedy series Hacks about a fading female comedian. She also was one of the winning co-writers. Britain’s Jessica Hobbs took home a directing Emmy for The Crown.

“Not a lot of women have won this award so I feel like I am standing on the shoulders of some really extraordinary people,” Ms. Hobbs said.

Seven of the 12 acting awards went to Britons, including Olivia Colman and Josh O’Connor for playing Queen Elizabeth and heir to the throne Prince Charles in a fourth season of The Crown that focused on the unhappy marriage of Charles and Princess Diana.

“We’re all thrilled. I am very proud. I’m very grateful. We’re going to party,” said Peter Morgan, creator of The Crown, at a gathering in London for the cast and crew.

An exuberant Kate Winslet won for her role as a downtrodden detective in limited series Mare of Easttown, while Ewan McGregor was a surprise winner for playing fashion designer Halston.

Concerns over the Delta variant of the coronavirus forced Sunday’s ceremony to move to an outdoor tent in downtown Los Angeles, with a reduced guest list and mandatory vaccinations and testing but a red carpet that harked back to pre-pandemic times. — Reuters

 

And the winners are…

HERE IS A LIST of winners in key categories at television’s Emmy Awards ceremony in Los Angeles on Sunday, hosted by Cedric the Entertainer and broadcast live on CBS television:

Outstanding drama series — The Crown

Outstanding comedy series — Ted Lasso

Outstanding limited Series — The Queen’s Gambit

Variety Special (Pre-Recorded) — Hamilton

Outstanding variety talk series — Last Week Tonight with John Oliver

Outstanding reality/competition series — RuPaul’s Drag Race

Outstanding lead actor in a drama series — Josh O’Connor, The Crown

Outstanding lead actress in a drama series — Olivia Colman, The Crown

Supporting Actor in a Drama Series — Tobias Menzies, The Crown

Supporting Actress in a Drama Series — Gillian Anderson, The Crown

Outstanding lead actor in a limited series or TV movie — Ewan McGregor, Halston

Outstanding lead actress in a limited series or TV movie — Kate Winslet, Mare of Easttown 

Supporting Actor in a Limited Series or Movie — Evan Peters, Mare of Easttown

Supporting Actress in a Limited Series or Movie — Julianne Nicholson, Mare of Easttown

Outstanding lead actor in a comedy series — Jason Sudeikis, Ted Lasso

Outstanding lead actress in a comedy series — Jean Smart, Hacks

Outstanding Supporting Actor in a Comedy Series — Brett Goldstein, Ted Lasso

Outstanding Supporting Actress in a Comedy Series — Hannah Waddingham, Ted Lasso

Demand for staff housing helps buoy residential market

PHILIPPINE STAR/ MICHAEL VARCAS

SAFE RETURN to workspaces is driving the demand for large condominiums and properties near mass transportation hubs, online property marketplace Lamudi said.

The company in a report on Friday said that the need for staff housing during the health crisis continues to drive demand for large residential spaces. The share of leads for rentals worth P100,000 to P200,000 in Luzon areas close to industrial plants and export processing zones increased in the second quarter of 2021 compared to the same period a year earlier.

Properties at the same price range also slightly grew in Metro Manila and in Visayas.

“Mid-rise condos, houses with multiple bedrooms, and other types of private residential housing present attractive options for companies in search of staff housing or on-site housing near their office,” the report said.

Lamudi said the demand for affordable rentals bounced back this year as parts of the population return to office work, with leads in properties in the P5,000 to P15,000 range growing on a quarter-by-quarter basis since the third quarter of 2020.

Those returning to office-based work are looking to rent spaces near bus stops or rail stations in Ortigas Avenue, West Rembo, and Western Bicutan. These areas are close to the Ortigas, Makati and Bonifacio Global City central business districts. Residents, Lamudi said, are able to access transportation offices on foot or via bicycle or motorcycle, minimizing transfers.

“Lamudi data on proposed Metro Manila Subway destinations — areas with major foot traffic — shows that more property seekers were looking into rental properties in the second quarter of 2021. ‘Rent to own’ was the top searched non-location specific term on the site in (the first half),” the report said.

“Real estate owners would do well to hold on to their properties in these areas as land values appreciate upon completion of the subway project. In the meantime, should residing there not be the best option, owners can rent out the property to young professionals, small businesses and even BPO companies in need of staff housing depending on the owner’s property type and size.”

Despite some return to office-based work, many are still working remotely or by freelance, leading to interest in leisure destinations in Siargao and Boracay.

Lamudi data also showed that some sought-after cities in the second quarter of 2021 were “renowned leisure destinations or cities with easy access to nature,” including Baguio, Tagaytay, and Antipolo.

“Provinces have recognized the demand from many young professionals to work from scenic places with plenty of outdoor amenities long term, and in the case of Ilocos Norte, have even incentivized for entrepreneurs and remote workers to put up shop on their shores,” the report said. — Jenina P. Ibañez

AREIT, DoubleDragon join indices under FTSE

AREIT, Inc. and DoubleDragon Properties Corp. said in separate statements that the companies have been added to indices under the Financial Times Stock Exchange (FTSE), both effective on Monday. 

AREIT is now a constituent of the FTSE EPRA Nareit Asia ex Japan REITs (real estate investment trusts) 10% Capped index, while DoubleDragon joined the FTSE Global Equity Index Series (GEIS) Asia Pacific Ex Japan, Ex China.

AREIT is the pioneer REIT in the country and is also the first Philippine REIT to make it to the index. It has a net market capitalization of $55.43 million.

FTSE EPRA Nareit Asia ex Japan REITs 10% Capped index includes REITs with portfolios in data centers, healthcare, industrial, industrial and office-mixed, diversified portfolios, lodging or resorts, residential, and retail.

AREIT joins 27 other constituents, generating an average dividend yield of five percent as of end-August.

The index is part of the FTSE EPRA Nareit Global Real Estate index series, which includes REITs and real estate holding and development companies from global developed and emerging indices including the United Kingdom’s alternative investment market.

AREIT was also recognized as the Most Outstanding IPO (initial public offering) in the country by Asiamoney 2021 Asia’s Outstanding Companies Poll, which is conducted annually. The poll looks into areas such as financial performance, management team excellence, investor relations programs, and CSR initiatives.

Over 5,787 votes were taken into account for publicly-listed companies across 13 markets in Asia. The poll recognized 191 companies as the most outstanding according to their respective sectors and markets.

AREIT expects its gross leasable area (GLA) to grow to 549,000 square meters (sq.m.) from 344,000 sq.m. following a planned asset infusion. This will grow the total assets under management to P52 billion from its current P37 billion.

Meanwhile, DoubleDragon has been added to the FTSE GEIS Asia-Pacific ex Japan, ex China for the first time. The company said this “notable recognition” is an opportunity to increase its visibility to possible investors at home and to global investors.

“We are pleased to be included in one of the most reputable and recognized global equity indices in the world,” DoubleDragon Chairman Edgar “Injap” J. Sia II said.

“This FTSE Global index inclusion will further inspire DoubleDragon to solidify the company’s fundamentals for the benefit of all its stakeholders,” he added.

The listed property developer said it is expecting to end the year with a gross floor area spanning 1.2 million sq.m.

On Monday, AREIT shares at the local bourse went up by 3.81% or P1.40 to end at P38.10, while DoubleDragon shares climbed 1.20% or 12 centavos to close at P10.12 each. — Keren Concepcion G. Valmonte

Nirvana’s Nevermind still provokes a debate over decency

FACEBOOK.COM/NIRVANA

“LASCIVIOUS” or “edgy”? That’s the question raised by the lawsuit filed by Spencer Elden, now 30 years old, who as a baby was featured on the cover of Nirvana’s Nevermind album, swimming naked after a dollar bill that dangles before him on a fishhook. Mr. Elden argues that the image is pornographic and that, as an infant, he was forced to engage in commercial sex.

I admit to knowing little about popular music, even popular music from three decades ago, and until the lawsuit was filed, I’m not sure I’d ever so much as glanced at the iconic Nevermind cover. On the merits, I tend to side with the many lawyers who are skeptical that the album cover is pornographic. But I could be wrong, not least because over the past 30 years, the balance between edgy and pornographic has swung quite radically.

Nevermind was released in 1991 to enormous commercial success as well as critical acclaim. The album’s cover image, said the London Observer, represented “the Faustian contract that usually comes with money”: if you take the money, “you’re hooked for life.” The image was also seen as an illustration of the ambivalence of Nirvana itself, a purportedly rebellious grunge band that had signed its first mainstream contract.

The album, Rolling Stone would say years later, “transformed grunge into a national phenomenon” — perhaps because, as the historians point out, “grunge softened punk.” Whatever the cause, for that brief moment in the mid-1990s, “grunge dominated the mainstream.” And even if some found the cover image outrageous or disturbing, this was yet the era when the left was determined to épater les bourgeois.

Still, even early on there were dissenters. Writing in the New York Times in 1994, the acclaimed fashion journalist Suzy Menkes pointed to the Nevermind cover art as part of a fashion trend that had become “uncomfortably close to kiddie porn.”

Ms. Menkes wasn’t pointing fingers; she was describing how fashion mimics “what is in the air.” Moreover, one suspects that for many of those who lauded the swimming baby image, “uncomfortably close” was part of the appeal. To be edgy is to dance along a forbidden line without quite stepping over it; or, if one does happen to dangle a toe on the wrong side, to jump back at once to safety.

That’s what the Nevermind album cover does: it dances along the line. A provisional addition to the Oxford English Dictionary defines “edgy” as “that [which] challenges received ideas or prevailing aesthetic sensibilities; at the forefront of a trend.”

The visual arts often challenge sensibilities in exactly this way, by giving us a visceral if virtual punch, somewhere in vicinity of the id. One need look no farther than Picasso’s 1907 masterpiece Les Demoiselles d’Avignon. Modern critics have decried the painting as deeply offensive in its portrayal of black sexuality, but through some aesthetic magic our very revulsion draws us in. The imagery works.

Perhaps the best-known exponent of edginess in my lifetime was Robert Mapplethorpe. His photographs were not to my taste, but the controversy sparked by posthumous exhibitions of his work in the late 1980s and early 1990s led to difficult yet important conversations about both the diversity of human sexuality and the depth of our commitment to free expression. (I’m pleased to disclose that a member of my family was heavily involved in the controversy, on the pro-speech side.)

The largest and angriest of the Mapplethorpe controversies, which erupted over the 1989 exhibition at Washington’s Corcoran Gallery of Art, revolved in large part around his photographs of naked children. In a 2020 article, the legal scholar Amy Adler detects in the legal and political discourse since then a decline in concern about obscenity alongside a rise in concern about child pornography. To oversimplify Ms. Adler’s argument, there exist images that would have been considered obscene three decades ago that are obscene no longer; but, where depictions of young children are involved, there exist images that would have been considered art three decades ago but are now considered pornographic.

The arc of time that she studies fits the arc since Nevermind was released in 1991. Back then, the swimming baby was art, its significance analyzed to death. By today’s standards, the image strikes many people differently, just the way that many of the Mapplethorpe photographs do. What was once edgy has become sinister.

I’m not decrying the heightened concern over child pornography; I’m wondering whether we should apply our standards retrospectively. Does the fact that an image was considered art three decades ago mean that society cannot change its collective mind and decide today that it was kiddie porn all along? The question is uncomfortable. But Mr. Elden’s lawsuit might be the vehicle that forces an answer. — Bloomberg Opinion

Gov’t makes full award of T-bills as rates decline

BW FILE PHOTO

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Monday as rates dipped across the board on expectations that the Bangko Sentral ng Pilipinas (BSP) will keep benchmark rates at their record lows this week.

The Bureau of the Treasury (BTr) raised P15 billion as planned via the T-bills it auctioned off on Monday as total tenders reached P72.51 billion, nearly five times as much as the initial offer and also higher than the P63.273 billion in bids logged in the previous auction.

Broken down, the BTr raised P5 billion as planned via the 91-day debt papers from P21.62 billion in bids. The three-month T-bills fetched an average rate of 1.07%, down by 0.9 basis point (bp) from the 1.079% seen at last week’s offering.

It also borrowed the programmed P5 billion via the 182-day T-bills as the tenor attracted bids worth P26.47 billion. The six-month paper’s average yield also went down by 1.3 bps to 1.389% from 1.402% a week ago.

Lastly, the government made a full P5-billion award of the 364-day papers from P24.42 billion in tenders. The one-year securities fetched an average rate of 1.597%, dipping by 0.7 bp from 1.604% previously.

National Treasurer Rosalia V. de Leon said strong demand for the short-term debt, coupled with the P20 billion in maturities this week, helped pull down T-bill yields at Monday’s auction.

She said the market also priced in expectations of a steady monetary policy stance from the BSP at its rate-setting meeting on Thursday.

A BusinessWorld poll conducted last week showed 17 out of 18 analysts expect the BSP to keep benchmark rates at record lows at its policy review on Sept. 23.

Analysts said the BSP may look past rising inflation as economic recovery remains “fragile.”

Headline inflation quickened to 4.9% in August from 4% in July, its fastest pace in more than two years or since the 5.2% seen in December 2018, amid rising food and utility costs.

This brought the eight-month average to 4.4%, above the central bank’s target of 2-4% and forecast of 4.1% for the year.

A bond trader said T-bill yields slipped on Monday as the market remains awash with cash.

“While the T-bill rates are lower than previous week’s auction, we don’t expect it to dip further. The result just reflects that the system is still very much liquid,” the bond trader said in a Viber message on Monday.

The trader said concerns over the possible extension of strict quarantine restrictions in Metro Manila may also put more pressure on government securities’ rates as this may dampen recovery prospects.

“If it happens, then there will be a spillover of slow economic activity into the fourth quarter. That is crucial because these are the festive months,” the trader added.

The new alert level system of granular lockdowns is now being implemented in Metro Manila. The scheme will allow local governments to place stringent lockdown measures in areas with high coronavirus infections to curb the spread of the virus while allowing the rest of the economy to function.

The capital region is under Alert Level 4 from Sept. 16 until the end of the month. National Task Force Against COVID-19 Spokesman Restituto Padilla, Jr. said over the weekend that this status — the second highest level — may be extended by two weeks before there is significant improvement in data.

The BTr will auction off P35 billion in reissued seven-year Treasury bonds (T-bonds) with a remaining life of six years and 10 months on Tuesday.

The Treasury is looking to raise P250 billion from the local market this month: P75 billion via weekly offers of T-bills and P175 billion from weekly auctions of T-bonds.

The government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. — Beatrice M. Laforga

New DMCI Homes project to rise in Quezon City

DMCI PROJECT DEVELOPERS, Inc. (DMCI Homes) is planning to launch a new project in Tandang Sora, Quezon City before the end of the year.

In a statement, the residential arm of listed DMCI Holdings, Inc. said The Erin Heights will be launched to take advantage of steady demand for residential spaces in Quezon City.

The Erin Heights is located along Commonwealth Avenue, and near the planned Tandang Sora Station of the Metro Rail Transit Line 7 (MRT-7).

DMCI Homes President Alfredo R. Austria said the company has been able to launch and deliver projects despite the pandemic restrictions because of the integration of in-house design, engineering, and construction.

“Even before the pandemic, our approach has served our company well, allowing us to be more agile in optimizing our product offerings according to market requirements. This translates to better cost control and better value for our customers in terms of new or better product features,” he said. — Cathy Rose A. Garcia

Online grocery seen to be a P51-billion market by 2025

PIXABAY

THE online grocery market in the Philippines is expected to become a P50.6-billion market by 2025, according to independent London-based analytics and consulting firm GlobalData Plc.

Details of GlobalData’s Philippines Grocery Industry Report was sent in an e-mailed press statement by AllDay Marts, Inc. on Monday.

The growth of the online grocery market is expected after online grocery spending grew by 153% in 2020 as consumers shifted to digital transactions amid the implementation of coronavirus disease 2019 (COVID-19) restrictions, GlobalData said.

In terms of its compound annual market growth (CAGR), the country’s online grocery market is expected to grow by 32.5% between 2020 to 2025 from its 62.3% CAGR seen in 2015 to 2020.

“The approach of [grocery stores] using their own web or app plus a partnership with marketplaces helps supermarkets reach more customers and fuels the growth online,” GlobalData said.

Meanwhile, it said the mid-premium supermarket segment is attracting “a wider spectrum of shoppers” via regular deals and promotion in-store and online.

The consulting firm defined mid-premium supermarkets as the stores focusing on quality and service, as well as a collection of premium items competitively priced.

Meanwhile, there are also value and value-mid cover players, which emphasize price instead of service and quality. Players in between the two are in the mid-market segment, which focus on “a balanced proposition and fairly standard range in terms of price and quality.”

ALLDAY
Independent analytics and consulting firm GlobalData named AllDay as the leading player in the mid-premium market segment in the country. It also said AllDay is the fastest growing supermarket operator in the country with a CAGR of 62.5% from 2015 to 2020.

AllDay filed for an application for a P6-billion initial public offering with the Securities and Exchange Commission and the Philippine Stock Exchange, Inc. last month. The company is awaiting regulatory approval.

The company plans to offer up to 6.857 billion common shares for 80 centavos each, with an overallotment option of up to 685.7 million shares.

Around P4.10 billion of the proceeds will be used for the repayment of the debt it incurred to fund past and ongoing store expansions. Meanwhile, the balance will be used for capital expenditures and to partially fund another wave of store launches.

AllDay aims to have 44 stores by the end of next year, up from its current 33 branches. The company hopes to have 100 stores by 2026.

“AllDay’s expansion strategy is anchored on the Villar Group’s property development plans — a store in each and every Vista Land community across the country — from Ilocos Norte in the North to Cotabato in the Southern Philippines,” AllDay said. — Keren Concepcion G. Valmonte

1...7,1197,1207,121...13,879Page 7,120 of 13,879
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube