Yields on gov’t debt fall

August 9, 2021 | 12:01 am

YIELDS ON government securities (GS) at the secondary market went down last week following the release of July inflation data and the government’s reimposition of strict lockdown measures in Metro Manila and nearby provinces.

GS yields, which move opposite to prices, fell by an average of 5 basis points (bps) week on week, based on the PHP Bloomberg Valuation Service Reference Rates as of Aug. 6 published on the Philippine Dealing System’s website.

At the short end of the curve, yields on the 91- and 182-day Treasury bills (T-bills) slipped by 1.8 bps and 3.33 bps, to 1.1112% and 1.3960%, respectively. On the other hand, the rate of the 364-day paper inched up by 0.58 bp to 1.6419%.

At the belly, the rates of the two-, three-, four-, five-, and seven-year Treasury bonds (T-bonds) fell by 8.23 bps (1.8871%), 11.86 bps (2.2136%), 13.81 bps (2.5322%), 13.72 bps (2.8553%), and 6.28 bps (3.4364%), respectively.

Rates of the long-dated papers climbed, with yields on the 10-, 20-, and 25-year T-bonds rising by 0.85 bp (3.888%), 1.58 bps (4.7773%), and 1.06 bps (4.7585%), respectively.

“Local GS yields dropped, led by strong buying interest on the short and belly end of the curve, on the back of easing inflation expectations onshore after the release of July CPI (consumer price index) print,” a bond trader said via Viber message.

“The drop in local bond yields was also due to the re-imposition of the strictest lockdown measure in Metro Manila from Aug. 6 to 20 to stem the spread of the Delta variant, thereby prompting market players to reassess their bets of a strong economic recovery for the year,” the trader said.

The bond trader added that the Bangko Sentral ng Pilipinas’ (BSP) hints of a possible cut in banks’ reserve requirement ratio was the “icing on the cake.”

“[Last week’s performance] was primarily driven by inflation and the launching of ECQ (enhanced community quarantine), which is expected to dampen economic growth, depending on how long the ECQ will last,” Security Bank Corp. Chief Investment Officer for Trust and Asset Management Group Noel S. Reyes said in a phone interview.

Metro Manila and its nearby provinces are under ECQ from Aug. 6-20 to help curb a surge in COVID-19 cases due to the more transmissible Delta variant.

Meanwhile, the BSP said lowering the reserve requirement ratio (RRR) remains “on the table,” Bloomberg reported on Wednesday.

The reserve requirement for big banks is currently at 12%, still one of the highest in the region. The central bank last cut big banks’ RRR in April 2020 with a 200-bp reduction.

In July 2020, it likewise slashed the reserve requirements of thrift and rural banks by 100 bps to 3% and 2%, respectively.

The BSP’s Monetary Board will have its next policy-setting meeting on Thursday. However, it has adjusted its RRR outside these meetings in the past.

On the other hand, headline inflation eased to a seven-month low of 4% in July, the Philippine Statistics Authority reported on Thursday. This marked the first time since December 2020 that it settled within the BSP’s 2-4% target.

The July result brought year-to-date inflation to 4.4%, still above this year’s target and the central bank’s 4% forecast for this year.

For this week, yield movements will be driven by auctions of government securities as well as the release of data on the economy’s performance in the second quarter.

“We will start the week with the T-bill auction, which will guide direction for yields on the short dates [before] moving on to the seven-year auction and second-quarter Philippine GDP (gross domestic product) print [on Tuesday], which will dictate yield direction for the rest of the curve. Market will also be vigilant and will watch for clues for Thursday’s Monetary Board meeting,” the bond trader said.

The Treasury will auction off P15 billion in T-bills today and P35 billion in fresh seven-year T-bonds tomorrow.

Meanwhile, Security Bank’s Mr. Reyes expects yields to move sideways for the entire duration of the two-week ECQ due to the “ghost month.”

The ghost month is a period in the Lunar calendar when some Asian investors refrain from doing big investments or decisions that coincides with the vacation of fund managers in the West, thereby resulting in lower trading volumes. For this year, it starts on Aug. 8 and ends on Sept. 6. — B.T.M. Gadon

The Argentine river that carries soybeans to the world is drying up

August 9, 2021 | 12:01 am

SNAKING its way through thousands of miles of South American rainforest and pampas and past sprawling soybean and corn farms, the Parana River is the main thoroughfare for Argentine commerce. Some 80% of the country’s crop exports flow through its muddy waters en route to the Atlantic Ocean.

So when the river’s levels fell to the lowest since the 1940s — the result of years of scorching drought that scientists attribute to climate change — it deepened the strains on an economy that was already struggling to recover from its pandemic collapse.

Grains traders suddenly found themselves forced to scale back how much they pile onto cargo ships, afraid to get them stuck in the river’s shallow banks, and then either add to their load once they reach deeper sea ports or contract out more vessels. Both are expensive, time-consuming options that have hamstrung an industry that pulls in more than $20 billion annually from exports. Gustavo Idigoras, head of Ciara-Cec, a crop export and processing group whose members include Cargill, Inc. and Glencore Plc, called it an “emergency situation” that will likely last through the end of the year.

There’s been a financial toll on the imports side, too: Low river levels mean less hydro power and, as a result, more money that has to be shelled out for shipments of diesel to fuel electricity plants. Diesel imports have jumped to their highest since 2018 as the Yacyreta dam, which usually supplies about 14% of Argentina’s power from its northern river border, operates at just a third of capacity.

The combination of slowing exports and rising imports is cutting into the country’s trade surplus and adding to a slew of factors that are driving down the peso, the worst-performing currency in emerging markets this year. This has prompted the central bank to step back into foreign-exchange markets in recent days and sell dollars to prop up the peso and try to prevent inflation from spiraling even further out of control. Running at 50% a year, inflation is already a major drag on economic growth as it eats away at the purchasing power of tens of millions of Argentine consumers.

“If the shallowness of the Parana persists in the medium term, it’s a problem” because crops are Argentina’s biggest source of coveted export dollars to shore up the peso, and the country has already been slipping dangerously back to becoming a net importer of energy, said Belen Rubio, an economist at MAP, a consultancy firm in Buenos Aires.

The dried-up Parana has exposed a lack of long-term logistics planning in Argentina, she added, with the agriculture industry clamoring for a deeper shipping channel and where dams account for 28% of electricity generation capacity.

The setbacks to Argentine exports have global implications. The nation is a powerhouse of oilseed and grain production, the world’s No. 1 shipper of soybean meal for feeding livestock and soybean oil for cooking and biofuels. It’s the third biggest exporter of corn.

On the domestic front, the ebbing river levels are shaving dollars off the value of Argentina’s sales abroad, with Argentine soy meal premiums trading at record lows versus rival Brazil. Premiums paid for September shipment are about 25 dollars a ton cheaper than in its neighbor, and, even worse, many meal buyers are flocking to Brazil to avoid the higher shipping costs altogether.

The Parana’s situation has gotten so dire that Argentina even declared a water emergency in seven riverside provinces on July 24, which allows the government to take special action to mitigate the impact of the drought and keep businesses and industry going.

The drought has been fiercest at the source of the river in Brazil, largely sparing Argentina’s farm belt 1,500 miles south. In Brazil itself, meanwhile, the dryness has destroyed crop yields.

As for the rising diesel imports, they’re a fraction of the country’s trade surplus, yet still closely watched because they can have an outsize impact.

“Argentina has a hard-currency shortage so even a minimal outflow of dollars to import additional energy adds uncertainty,” said Marcelo Elizondo, an Argentine consultant who specializes in trade. “The question is how long this lasts for.” — Bloomberg

Hyundai PHL has hand in modernizing Northern and Central Luzon PUVs

August 9, 2021 | 12:01 am

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HYUNDAI ASIA Resources, Inc. (HARI), the country’s official distributor of Hyundai commercial vehicles through Hyundai Trucks and Buses Cabanatuan (HTB Cabanatuan), continues its support for the nationwide Public Utility Vehicle Modernization Program (PUVMP) with the recent turnover of a fleet of Hyundai Modern PUVs in Northern and Central Luzon.

The units are among the estimated 100 Modern PUVs that HARI turned over to various transport cooperatives nationwide this year. HTB Cabanatuan counts this as its fourth turnover this year, covering areas of Luzon, specifically Tarlac, Pangasinan, plus Ilocos Norte and Bulacan.

Said HTB Cabanatuan President Dennis San Juan, “We are grateful for the opportunity to participate in the government’s PUVMP and to contribute to helping the country’s hard-working transport cooperatives to modernize their fleet through Hyundai’s quality people movers. Our dealership is ready to provide service assistance necessary for their cooperatives to keep on moving for sustainable mobility and progress.”

HTB Cabanatuan recently turned over 23 units of HD50S Modern PUV Class 2 to the Laoag Bacarra Pasuquin Transportation Group, Inc. (LBPTGI), while the Sapang Palay Tungko Grotto Transport Service Cooperative (SPTGTSC) of San Jose Del Monte, Bulacan, received 15 brand-new units of the same Modern PUV model last July 19.

Both events were attended by officials from the national and local government, transportation sector, banking industry, and community groups.

According to HARI President and CEO Ma. Fe Perez-Agudo, the vigorous sales of their Modern PUV models is an indicator of the growing trust and confidence of the transport sector in Hyundai. “HARI believes that quality speaks for itself, and that commitment to quality is what our hard-working, progressive transport groups have seen in our Hyundai Modern PUVs. They can rest assured that we shall return their trust with nothing less than dedicated service and assistance to maintain the quality, safety, and road-worthiness expected of our Modern PUVs,” she said.

For more information, visit www.hyundai.ph. A quote for any of Hyundai’s commercial vehicles is available at www.hyundai.ph/shop/eb2B or e-mail Hyundai CARES at wecare@hyundai-asia.com.

Style (08/09/21)

August 9, 2021 | 12:01 am

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Find the perfect shirt at UNIQLO

JAPANESE global apparel retailer, UNIQLO has launches its latest T-shirt collection meant for people’s everyday needs. The line-up comes in a variety of colors, silhouettes, and made with premium yet comfortable fabric. Stay comfortable while working on home renovations and chores with the Men’s and Women’s U Crew Neck Short Sleeve T-Shirt. The collars have binding specifications that help the garment keep its shape and will not stretch out. It is made from low-count yarn with a compact knit, designed to be durable and long-lasting. For online work meetings, a Women’s Mercerized Cotton Flare Short Sleeve T-Shirt exudes an effortlessly elegant look with its shirt-like fabric and voluminous flared sleeves. For men, there is the classic yet versatile Supima Cotton Crew Neck Short Sleeve T-Shirt, made with 100% Supima cotton which keeps one feeling fresh after a whole day of presentations. To stay cool even after a whole day’s work or after exercising there are the Women’s U AIRism Cotton Crew Neck Oversized T-Shirt, whose comfort conditioning technology provides breathable and quick-drying properties that help wick away moisture and heat; and the Men’s DRY-EX Crew Neck Short Sleeve T-Shirt, made with ultra-fine fibers that eliminate odors and alleviate that sticky feeling after working out. For staying home and binge-watching your favorite TV series during the rainy season, there is the Women’s Stretch Cotton High Neck Half Sleeve T-Shirt and Men’s Soft Touch Crew Neck Long Sleeve T-Shirt, both made with thick and opaque cotton fabric and treated with a special softener for a wrinkle-free and silky texture. Visit the UNIQLO Philippines’ website at uniqlo.com/ph to check out these T-shirts and more.

GrabPay online deals stretch past Aug. 8

IT’S A LITTLE past Aug. 8 (when the big online sales were held), but shopping deals from GrabPay can stretch all the way until payday. GrabPay, the online payment service offered by Grab, offers discounts from retail and shopping partners until Aug. 12 or 15 (depending on the partner), if the shopping is done with a GrabPay Card. Get up to 20% off on Lazada with a GrabPay Card with promo code GrabPay88, with a minimum spend of P2,000 until Aug. 12. On Shopee, one can get a P200 cashback with a minimum spend of P1,000. Shein offers 10% off if one uses GrabPay, with a minimum spend of P2,000. Zalora will offer up to 25% off and 5% cashback until Aug. 16 with a minimum spend of P2,000 until Aug. 15. One can also get deals on e-gift checks from Pancake House, Jollibee, and Auntie Anne’s. Other partners offering deals with GrabPay include Adidas, Pomelo, and ShopSM. Using GrabPay for online shopping earns reward points that one can collect and use to enjoy discounts on GrabCar, GrabFood, and GrabMart, and can use to pay for purchases. For more information on GrabPay, visit https://www.grab.com/ph/blog/experience-grabpay-now/.

Lounge wear, athletic-inspired fashion from #MKGO

MICHAEL KORS kicks off the MICHAEL Michael Kors Fall 2021 season with #MKGO, the brand’s wear-everywhere line of lounge wear and athletic-inspired fashion for women and men. Equal parts luxe and laid-back, #MKGO offers a wardrobe refresh as the world begins to open up again. Among the offerings is a cozy chic knit dress, reversible long puffer and a range of sporty essentials for both women and men including leggings, joggers, T-shirts, and sweatshirts. Setting the tone for the whole season is a fall-ready color combination of optic orange and brand’s chocolate signature print, often punctuated by bold logo accents. For accessories, the SoHo Bag and Hudson backpack return for fall with a new graphic monogram stripe featuring a repeating KORS motif. The Olympia Extreme trainer and Keke Extreme boot have both been updated with a new bubble out sole. For men, there are the Theo trainer and Asher boot. The new #MKGO pieces will land in stores and MichaelKors.com on Aug. 10. In the Philippines, Michael Kors has stores at Central Square in Bonifacio High Street Central, Greenbelt 5, Newport Mall, Power Plant Mall, Rustan’s Makati, and Shangri-La Plaza Mall and is available online at Trunc.ph and Rustans.com.

Montblanc celebrates Sir Arthur Conan Doyle

WITH its Writers Edition pens, Montblanc pays tribute to some of the world’s greatest literary figures. Among those great writers is Scottish-born Sir Arthur Conan Doyle, best known for the 60 stories he wrote about Sherlock Holmes. The new Montblanc Writers Edition Sir Arthur Conan Doyle collection is inspired by the Sherlock Holmes stories and the life of his originator. The clip on each of the editions is shaped like a magnifying glass in homage to Sherlock Holmes. The author’s likeness can be found engraved on every nib on each of the four editions, accompanied by a special story element from the theme of the respective edition. The four editions are: the Sir Arthur Conan Doyle Special Edition, whose cap and barrel are decorated with a pattern based on an original Sherlock Holmes Tartan, and details that focus on Doyle’s medical practice like an old street map showing the street of his clinic, and whose nib is engraved with pterodactyls from his novel The Lost World, and a cap ring decorated with Doyle’s signature and the vine symbol from the cover of A Study in Scarlet, among other touches; the Sir Arthur Conan Doyle Limited Edition 1902, whose dark brown lacquer recalls the detective’s pipe, the limited number of 1,902 fountain pens and 1,902 rollerballs is a reference to the first publishing of The Hound of Baskervilles in 1902; the Sir Arthur Conan Doyle Limited Edition 97 which references 1897, the year the author’s house in Surrey, where he wrote most of his important works, was completed, it also has a white gold skeletonized overlay on different translucent lacquer fields inspired by the stained-glass windows at the house; and the Sir Arthur Conan Doyle Limited Edition 8, adorned with three-dimensional icebergs in white gold, surrounded by translucent blue lacquer reminiscent of the icy waters of the Arctic where he had served as ship’s surgeon on a whaling boat. To complete the tribute to Sir Arthur Conan Doyle, Montblanc is introducing a selection of matching writing accessories: a stationery notebook made from woven velvet featuring a street map of London and the author’s signature; a red ink in a glass ink bottle is inspired by the first Sherlock Holmes novel A Study in Scarlet; and a single leather pen pouch embossed with a street map of London and tartan pattern. Montblanc is available at Rustans Makati, Rustans Shangri-La, Rustan’s Cebu, Greenbelt 5, City of Dreams, Resorts World and through Rustan’s Personal Shopper On-Call

Charriol launches the Forever Rainbow Collection

CHARRIOL present the Forever Rainbow Collection in celebration of summer 2021, a limited edition watch that encapsulates optimism. The collection was designed as an expression of the Charriol motto L’Art de vivre la Différence, (the art of living the difference) a commitment to an iconoclastic life. The watch dial features the iconic rainbow motif, bold stripes of colored enamel framed by markers of colored gemstones, encompassed by a case offered in silver, gold, or rose gold. The band features nine signature twisted cables, nested in rigid stainless-steel structure, creating a sturdy and classic base for the bright dial. In the Philippines, Charriol is located at Greenbelt 5, Power Plant Rockwell, Trinoma, Central Square Bonifacio High Street, Rustan’s Makati, Rustan’s Shangri-La Plaza, SM Mall of Asia, Alabang Town Center, The Podium, Newport Mall, Robinsons Place Manila, Robinsons Magnolia, Marquee Mall Pampanga, Rustan’s Ayala Cebu and Abreeza Davao. It is also available online at Trunc.ph, Rustans.com, and Zalora.

SMIC recovers after Delta lockdown jitters

August 9, 2021 | 12:01 am

SY-LED SM Investments Corp. (SMIC) bounced back last week as the stock market stabilized after the lockdown-induced panic selling.

Data from the Philippine Stock Exchange showed a total of 880,800 SMIC shares worth P838.42 million were traded from Aug. 2 to 6, making the listed firm the seventh most actively traded stock last week.

Shares of the Sy family’s holding firm grew by 5.8% to P963 apiece last Friday from its July 30 finish of P910.50. The stock has dipped by 9.2% since the start of the year.

Analysts said the week-on-week recovery came after SMIC and other blue-chip issues bounced back from the panic selling brought by the reimposition of strict lockdown in Metro Manila as well as nearby provinces to contain the spread of the Delta variant of the coronavirus.

“SMIC basically recovered all of its losses from the week before as share prices began to stabilize from the extreme panic selling that we saw due to the reimposition of tighter restrictions,” AAA Southeast Equities, Inc. Head of Research Christopher John A. Mangun said in an e-mail interview.

In a Viber message, Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan shared the same view, adding that “positive sentiment influenced the local bourse this week, amid the string of positive corporate earnings reports released over the past few days.”

For the third time, the government has placed the capital region in a two-week enhanced community quarantine (ECQ) until Aug. 20 in its bid to contain the spread of the more transmissible Delta strain of the coronavirus.

Surrounding provinces have also been put in various degrees of lockdown.

The Health department has detected 331 Delta variant cases in the country.

SMIC H1 EARNINGS, GOLDILOCKS BUY
The holding company disclosed to the local bourse on Wednesday that it hiked its stake in Goldilocks Bakeshop, Inc. to approximately 74%, from 34.1% as of end-2020, making Goldilocks a subsidiary of SMIC.

Mr. Mangun said the Goldilocks acquisition is a “good addition” to SMIC’s retail food portfolio.

“This is a small company in the large scheme of SM’s business portfolio although the Goldilocks brand will definitely benefit from SM’s management and expansion strategies and may come back stronger once the economy recovers,” he said.

SMIC’s first-semester bottom line ballooned nearly three times to P20.1 billion this year from P7.1 billion a year ago.

Its banking unit accounted for almost three-fifths of its net earnings in the first half, followed by property and retail at 28% and 14%, respectively.

Mr. Pangan did not provide his net income forecast for SMIC but said he would watch out for the impact of the new movement restrictions on the company’s business segments.

“Given the uncertainty brought about by the spread of the Delta variant and the strict quarantine measures that were implemented to contain it, we’ll observe in the coming months if its businesses in banking, property, and retail will continue to perform well,” Mr. Pangan said.

Mr. Mangun, meanwhile, penciled in a second-half bottom line of between P25 billion and P30 billion, topping the P23.39-billion attributable net income SMIC booked last year.

“The July-December period is always the most important for mall operators and retailers. It’s going to come down to the vaccination progress,” Mr. Mangun said.

“If the government can meet its target of having 60% of the population fully vaccinated before the end of the year, then we may have a wonderful Christmas season which will be good for SM,” he added.

For this week, Mr. Mangun placed SMIC’s support level at P910 and its resistance at P1,020.

Likewise, Mr. Pangan put the stock’s immediate support level at P910, with P1,019 as the closest resistance area to monitor. — Abigail Marie P. Yraola

Analysts’ Q2 2021 GDP estimates

August 9, 2021 | 12:00 am

LOOSER LOCKDOWN restrictions, coupled with base effects likely lifted the Philippine economy out of the recession in the second quarter, economists said, adding that the outlook for sustained recovery remains cloudy due to the reimposition of tighter restrictions this month. Read the full story.

Analysts’ policy rate expectations (Aug. 12)

August 9, 2021 | 12:00 am

THE BANGKO SENTRAL ng Pilipinas (BSP) is widely expected to keep policy rates unchanged at its Thursday meeting, as the economy’s recovery is clouded by the spread of the Delta variant of the coronavirus disease 2019 (COVID-19). Read the full story.

How PSEi member stocks performed — August 6, 2021

August 9, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Friday, August 6, 2021.

Peso may climb on lower demand for dollars due to strict lockdown

August 8, 2021 | 10:02 pm

THE PESO could appreciate versus the greenback this week on muted dollar demand due to the Metro Manila lockdown, but market sentiment could take a hit from rising coronavirus infections and slower-than-expected economic data.

The local unit closed at P50.40 per dollar on Friday, losing 16.5 centavos from its P50.235 finish on Thursday, data from the Bankers Association of the Philippines showed.

It also weakened by 43 centavos from its P49.97-per-dollar finish the previous week.

The peso depreciated following the release of trade balance data, which showed imports continued to rise, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said, as this could mean increased demand for the dollar.

Peso-dollar trading last week also took cues from hawkish signals from the US Federal Reserve on the timing of the tapering of its bond purchases, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said.

For this week, Mr. Asuncion said the peso may be supported by reduced demand for the dollar due to the lockdown in Metro Manila. However, sentiment may remain cautious due to the surge in coronavirus infections.

Meanwhile, Mr. Ricafort said the market is waiting release of the second-quarter gross domestic product (GDP) data on Tuesday, Aug. 10.

The Monetary Board’s policy review on Aug. 12 will also be a driver for this week’s trading, he added.

A BusinessWorld poll of 20 economists yielded a median GDP growth estimate of 10.6% in the second quarter mainly due to base effects. If realized, this would mean the country’s exit from recession and a first-half growth print of 2% — still below the 6-7% target of the government for 2021.

Meanwhile, 18 analysts in a separate BusinessWorld poll expect the central bank to retain benchmark interest rates at their current record lows at Thursday’s meeting as the Delta variant threatens economic recovery and with lending activity still weak.

For this week, both Mr. Asuncion and Mr. Ricafort expect the peso to move within P50 to P50.50 versus the dollar. — L.W.T. Noble

Market to monitor GDP data, COVID-19 situation

August 8, 2021 | 10:01 pm

INVESTORS are expected to continue monitoring the country’s coronavirus disease 2019 (COVID-19) situation, with several areas under the strictest form of lockdown due to rising cases, as well as the release of second quarter gross domestic product (GDP) data on Tuesday.

The 30-member Philippine Stock Exchange index (PSEi) inched down by 7.36 points or 0.11% to close at 6,539.91 on Friday. Meanwhile, the broader all shares index went up by 12.85 points or 0.31% to finish at 4,055.42.

Week on week, the PSEi climbed 269.68 points from its 6,270.23 finish on July 30.

“Bargain hunting lifted the local market this past trading week by 4.30%,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message on Saturday.

“The rally was supported by optimism towards the second quarter corporate reports which have shown good results primarily due to low base effects,” he added. “This past trading week’s climb was also supported by foreign investors, with foreign net flows amounting to P397.61 million.”

“During the second half of the week, the market took a breather as participants chose to stay cautious while monitoring how the Delta variant’s global spread will affect our economic prospects,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message on Saturday.

For this week, investor focus will be on the country’s COVID-19 situation and upcoming economic data.

“Investors are expected to monitor our COVID-19 situation following the recent rise in case counts, and the detection of more cases with the infectious Delta strain,” Philstocks Financial’s Mr. Tantiangco said. “A sustained surge in our COVID-19 case counts, and a detection of more Delta variant cases may cause a decline in the local bourse since it raises the risks of prolonging the strict quarantine measures in the parts of the country where it is implemented.”

The Health department reported 11,021 new cases on Saturday to bring active infections to 76,063.

“[The] market [is] still on a losing streak, but [it’s] tempering ahead of the second-quarter GDP growth release [this] week, [which is] expected to show Philippine exit from recession,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message on Friday.

“If a slow [year-on-year] growth is seen for our economy this second quarter, then it may also give rise to negative sentiment in the market,” Philstocks Financial’s Mr. Tantiangco added.

A BusinessWorld poll of 20 economists yielded a median GDP growth estimate of 10.6% in the second quarter mainly due to base effects. If realized, this would mean the country’s exit from recession and a first half growth print of 2% — still below the 6-7% target of the government for 2021.

Mr. Tantiangco placed the market’s support at 6,400 with a resistance of 6,600, while Timson Securities’ Mr. Pangan expects a trading range of 6,270 to 6,600. — K.C.G. Valmonte

Manila-QC BRT construction expected to start next year

August 8, 2021 | 7:29 pm

By Arjay L. Balinbin, Senior Reporter

THE GOVERNMENT plans to begin construction of a 12.30-kilometer segregated bus lane from Manila City Hall to Philcoa in Quezon City next year or early 2023, the Transportation department said.

“Construction is targeted to start in end 2022 or early 2023,” the Department of Transportation told BusinessWorld on Aug. 6 when asked for an update on the Metro Manila Bus Rapid Transit (BRT) Line 1 project.

“Procurement for the social management consultant and technical support consultant is ongoing. Updates on the Feasibility Study designs are about to commence,” the department added.

The segregated bus lane project, which is expected to be completed in 2023, will have designated passenger boarding and alighting stations and passenger terminals.

The Metro Manila BRT Line 1 is projected to serve up to 290,000 commuters daily once completed.

The World Bank is funding the project, which is being implemented by the Transportation department in coordination with the Manila and Quezon City governments.

The World Bank approved the financing for the project in 2017. According to its website, the project’s total cost is $109.41 million, while the committed amount is $40.70 million.

The loan for the project is set to expire on Nov. 30, 2022.

“The objective of… (the Metro Manila BRT Line 1) for Philippines is to improve the efficiency, effectiveness and safety of the public transport system along the project corridor in Metro Manila in an environmentally sustainable manner,” the World Bank said.

The World Bank is also funding the 13.2-kilometer Cebu Bus Rapid Transit (Cebu BRT) project.

The Cebu BRT hopes to serve as many as 60,000 passengers daily once fully operational in May 2022.

The World Bank said the committed amount for the project is $116.00 million, while the total project cost is $228.50 million.

“The Cebu Bus Rapid Transit Project of the Philippines has an objective to improve the over-all performance of the urban passenger transport system in the project corridor in Cebu City in terms of the quality and level of service, safety, and environmental efficiency,” it noted.

Transportation Secretary Arthur P. Tugade wants to achieve partial operability before the end of 2021.

Once completed, the Cebu BRT “will be fielding 250 buses with at least 21 stations,” the Transportation department said on its website.

DoLE emergency funds now with regional offices; seeking P2B more for cash-for-work

August 8, 2021 | 7:16 pm

THE DEPARTMENT of Labor and Employment (DoLE) said it has distributed P13 billion to its regional offices, and is seeking P2 billion more to support a cash-for-work program, which budget officials said will be forthcoming once the original funds are spent.

“The P13 billion… has been obligated and downloaded to the regional offices,” the Labor department’s Information and Publication Service Director Raul M. Francia said in a Viber message on Sunday.

The P13 billion will help fund programs like the Tulong Panghanap-Buhay Para sa Ating Disadvantaged/Displaced Workers (TUPAD), which has an overall budget of P18 billion this year.

Mr. Francia said the request for the additional P2 billion “still stands.”

The government is rushing to put together aid packages in light of the new lockdown to deal with the spread of the coronavirus Delta variant, including other forms of direct cash aid for poor people unable to work because of quarantine rules.

On Thursday, Department of Budget and Management Undersecretary Tina Rose Marie L. Canda said DoLE must first utilize the P13 billion in emergency funds before it asks for additional money.

“They still have P13 billion from various emergency employment programs, so they can utilize (that) first, then afterwards, (if it is really not enough), then we can release an amount for their use,” Ms. Canda said in an interview on CNN Philippines.

Ms. Canda specifically mentioned TUPAD, which provides temporary employment for displaced, underemployed, and seasonal workers for a minimum period of 10 days and a maximum of 30 days, depending on the nature of work to be performed.

Beneficiaries of the program will be hired for social, economic, and agro-forestry community projects such as the repair, maintenance, and/or improvement of common public facilities and infrastructure, tree planting, seedling preparation, and reforestation.

In a briefing Tuesday, Mr. Francia said DoLE has “no more savings,” and that only P4 billion remains in its budget for the TUPAD program.

On Wednesday, Mr. Francia said the department will allocate P2 billion from the TUPAD program for cash assistance to workers who will be affected by the two-week lockdown in the capital region and other areas while waiting for the Budget department’s decision on its request for another P2 billion in cash aid.

According to the request for P2 billion, the distribution will be: P776 million for workers in Metro Manila, P298.5 million in Central Luzon, P179.1 million in Calabarzon (Cavite-Laguna-Batangas-Rizal-Quezon), P159.2 million in the Western Visayas, P39.8 million in Northern Mindanao, and P537.3 million for other areas that may be placed under the strictest quarantine settings.

Mr. Francia added that the P2-billion budget, if approved, will benefit 398,000 workers with each to be given up to about P5,000.

The Labor department earlier projected that around 400,000 workers will be affected by the two-week lockdown. — Bianca Angelica D. Añago