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Suntrust Properties teams up with Ohmyhome

SUNTRUST PROPERTIES, Inc. (SPI) has partnered with property technology company Ohmyhome, as it looks to attract more homebuyers.

“This partnership attests to our commitment to provide an easier, safer, and more convenient home buying experience for Filipino families looking to buy their dream homes,” SPI President Harry M. Paltongan said in a statement.

Ohmyhome, a property solutions platform in Singapore and Malaysia, launched its operations in the Philippines in September 2020.

SPI properties are now available on Ohmyhome’s app and website. In-house agent assistance is also available through the Ohmyhome platform.

“Suntrust and Ohmyhome aim to spur earnest property seekers to check out the company’s vast array of projects nationwide without leaving their domiciles,” he said.

Philippine peso is 47.8% undervalued against the US dollar

Philippine peso is 47.8% undervalued against the US dollar

How PSEi member stocks performed — January 18, 2021

Here’s a quick glance at how PSEi stocks fared on Monday, January 18, 2021.


EastWest vows to ‘promptly return’ depositors’ lost money

East West Banking Corp. (EastWest Bank) will “promptly return” the money of its two depositors believed to have been taken by a missing branch manager.

“We confirm that a branch manager of EastWest Bank has gone missing,” the Gotianun-led bank said in a disclosure to the local bourse on Monday.

The lender last week confirmed media reports that the money of two of its depositors went missing together with an unnamed branch manager. The manager and the depositors had been “transacting for years,” it said.

EastWest Bank said the amount that was taken “is not significant in relation to the bank’s earnings and total resources,” but did not disclose other details due to customer confidentiality and rules on bank secrecy.

“We take this opportunity to reiterate that EastWest will always stand by its commitment to protect depositors’ and customers’ money and will promptly return any missing deposits once the amount is established,” it said.

“We have been in touch with the two affected depositors and they have been informed that an internal investigation is ongoing,” EastWest Bank added.

The bank has also said that the incident only happened in one branch and was an “isolated” case.

EastWest Bank posted a P5.9-billion net income in the first nine months of 2020, up 28% year on year.

Shares in the bank edged up by four centavos to P10.38 each on Monday. — BML

Peso slips vs dollar

THE PESO weakened against the greenback on Monday as the market repositioned ahead of US President-elect Joseph R. Biden.’s first day in office.

The local currency inched down by one centavo to P48.075 versus the dollar on Monday from its P48.065 finish on Friday, based on the data from the Bankers Association of the Philippines.

It opened the session at P48.08 per dollar, which was also its weakest showing for the day, while it climbed to as high as P48.055 against the greenback.

Dollars traded went down to $418.70 million yesterday from $511.1 million on Friday.

“The peso depreciated from safe-haven demand over possible developments ahead of President-elect Biden’s inauguration this week,” a trader said via email on Monday.

Mr. Biden and Vice-President-elect Kamala G. Harris will be sworn into office on Wednesday, Jan. 20. Mr. Biden earlier announced a $1.9-trillion stimulus package meant to support the world’s largest economy rebound from a pandemic-induced recession.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that the local unit depreciated as “the US dollar versus major global currencies corrected to new one-month highs lately after softer US economic data on retail sales and consumer sentiment, after softer jobless claims data that suggest slower economic recovery.”

Mr. Ricafort said news on 29 elderly people dying in Norway after getting vaccinated for COVID-19 also led to a “healthy correction in US and global stock markets.”

The trader expects the peso to movie within P48 to P48.20 versus the dollar on Tuesday while Mr. Ricafort gave a lower forecast range of P48.04 to P48.10. — BML

Stocks extend drop on profit taking, virus worries

By Revin Mikhael D. Ochave, Reporter

LOCAL SHARES ended lower on Monday as investors engaged in profit taking and amid a lack of positive catalysts for the market.

The 30-member Philippine Stock Exchange index (PSEi) declined for a second straight day, dropping 35.02 points or 0.48% to close at 7,203.44, while the broader all shares index also fell 21.18 points or 0.48% to end at 4,321.30.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a mobile phone message that the market ended lower as investors opted to book their gains amid a lack of fresh leads.

“Pandemic worries aggravated by the entry of the new and more infective coronavirus disease 2019 (COVID-19) variant into the Philippines also weighed on market sentiment,” Mr. Tantiangco said.

The Health department on Monday reported 2,163 new COVID-19 cases, which brought the total infection count to 502,736.

Davao City recorded the highest number of new COVID-19 cases at 134, followed by Cagayan at 100, Quezon City at 99, Leyte at 93, and Cavite at 75.

Meanwhile, AAA Southeast Equities, Inc. Research Head Christopher John Mangun said the local bourse ended slightly lower as investors continue to monitor the health situation and economic recovery of the country.

“We expect the main index to continue sideways until government policies regarding vaccine rollout and quarantine restrictions are cleared up,” Mr. Mangun said in an e-mail.

China said on Saturday that it would donate 500,000 COVID-19 vaccine doses to the Philippines, Reuters reported. However, it did not specify which vaccines would be offered.

Some 50,000 vaccines made by Chinese vaccine maker Sinovac Biotech are expected to arrive in the Philippines by February.

Most sectoral indices ended lower on Monday, with industrials being the sole gainer, going up 21.74 points or 0.22% to 9,500.75.

Meanwhile, mining and oil declined 306.53 points or 3.08% to 9,642.13; financials shrank 19.48 points or 1.3% to 1,475.97; property went down 33.34 points or 0.9% to 3,661.48; holding firms decreased 21.74 points or 0.29% to 7,349.61; and services retreated 2.58 points or 0.16% to close the session at 1,555.98.

Decliners beat advancers, 137 against 95, while 43 names ended unchanged.

Value turnover amounted to P10.38 billion with 169.05 billion issues switching hands, lower than the P11.03 billion with 147.24 billion issues logged on Friday.

Net foreign selling stood at P509.91 million on Monday, higher than the P423.29 million in net outflows logged during the previous trading session.

Executive branch may not certify economic reform bills as urgent

By Kyle Aristophere T. Atienza

THE ADMINISTRATION is focused on delivering the needed fiscal boost for the economic recovery and may not certify as urgent a number of economic reform bills pending in Congress, the President’s spokesman Herminio L. Roque said.

At a televised briefing, Mr. Roque said the reform bills that are not on the legislative agenda include amendments to the Public Service Act, Foreign Investments Act, and Retail Trade Liberalization Act, all currently pending at the Senate.

Ang alam ko po, hindi kasama iyan sa legislative agenda ng ating gobyerno. Kada cabinet meeting po may report si PLLO Secretary kung iyon status ng mga bills na sa mula’t-mula ay sinusulong ng ating gobyerno (I understand that these bills are not on the government’s legislative agenda. At every cabinet meeting the Presidential Legislative Liaison Office Secretary reports the status of the bills being pushed by the government),” he said in response to a question on the reform bills.

Ang ating recovery po ay nakasalalay iyan doon sa pagpapatupad ng ating pantaunang budget sa 2021, doon sa pagpapatupad ng Bayanihan II na in-extend pa po natin (The economic recovery depends on how we implement the 2021 budget and also on the Bayanihan II stimulus package, which we have extended),” he added.

Bayanihan II is more formally known as the Bayanihan to Recover as One Act or Republic Act (RA) No. 11494, signed in September. It was the second stimulus package enacted during the pandemic, and its funding was originally valid until December. RA 11519, signed in late December, extended the validity of Bayanihan II funding to mid-2021. Meanwhile RA 11520 extended the validity of the 2020 budget to the end of this year.

Asked to comment, Senate President Vicente C. Sotto III told BusinessWorld via Viber Monday that the chamber will continue to legislate the bills in the normal course of business, even without a Palace certification.

“If the economic bills are brought forth in plenary then we will tackle it. Congress is not confined to what the Executive certifies as priority,” Mr. Sotto said.

The Senate lists the amendments to the Retail Trade Liberalization Act, or Republic Act No. 8762, and to the Public Service Act or Commonwealth Act No. 146 among its own priority bills.

According to the government’s economic managers, the P1.1 trillion earmarked for infrastructure projects under this year’s spending plan will have a multiplier effect benefiting various sectors hit hard by the pandemic. The economy is expected to grow this year after a contraction of 10% in the first nine months of 2020.

Senator Aquilino L. Pimentel III, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship, said the panel “will still proceed with the processing of the Retail Trade Liberalization Act.” The move “may in fact attract investment and create jobs,” he told BusinessWorld via Viber.

“What we are doing is changing the framework law and liberalize entry into our retail market. Whether foreigners will invest in that sector is still to be seen.”

Mr. Pimentel urged legislators to focus on the economic reform bills instead of pushing for Constitutional amendments, citing the limited time available to amend the Charter before national elections on May 9, 2022.

“No more time (to amend the Constitution). And not timely. Better focus on the achievable measures to help the poorest segments of our society,” he said.  “Let’s make charter change an election issue. Candidates in the 2022 elections must be asked their position on the specifics of the various proposed charter amendments.”

Sen. Grace Poe-Llamanzares, who chairs the Senate’s Public Services committee, said in a message that “The (Public Service Act) will continue to be finetuned by the Committee but its passage will be a collegial decision by the entire Senate.”

A University of the Philippines political science professor, Maria Ela L. Atienza, said key economic bills usually take a back seat at the Senate because the chamber is “of national” significance, and senators may be considering their chances in the next elections.

“Of course, senators are elected nationally. The senators are of course weighing their prospects on these issues because some of them are running for higher positions or seeking re-election on a national level,” Ms. Atienza told BusinessWorld by telephone Monday.

“Senators are keen (that) their actions avoid public scrutiny when they seek re-election,” she added. “These economic measures will further open up our economy, they will allow more foreign enterprises to come in. And that is monitored on a national level.”

Ms. Atienza also said senators are reluctant to attend to Constitutional amendments because “they don’t want to be seen as focusing on other matters in the midst of the pandemic.”

LRT-1 Cavite Extension more than halfway complete, Transport dep’t says

THE Transportation department said the first phase of the Cavite extension project of Light Rail Manila Corp. (LRMC), operator of Light Rail Transit Line 1 (LRT-1), is now more than half complete.

“The LRT-1 Cavite Extension Project is now more than halfway to completion of the partial operability section until Sucat Station, as we report an overall progress rate of 51.61% as of Dec. 31,” the department said in a statement Monday.

It said recent activities include bored piling, pier/portal column works, and foundation works.

“The accelerated pace of construction also includes the expansion of the existing depot in Baclaran, and the building of a new satellite depot at Zapote,” the department added.

It said that the LRT-1 Cavite Extension is expected to start partial operations by “the end of 2021.”

Jacqueline S. Gorospe, LRMC’s spokesperson, said by phone message that the company and the Transportation department will have “to agree and align on the timelines.”

“They are well aware of the possible adjustments given the pandemic works,” she added.

Ms. Gorospe did not immediately answer when asked if the target date for partial operations could be moved to 2022.

The P64.9-billion LRT-1 Cavite extension project, a public-private partnership (PPP) venture that the National Economic and Development Authority board approved in November 2013, aims to add an 11.7-kilometer Baclaran-Bacoor, Cavite segment to the current 18.1-kilometer train line. The new stretch will have eight stations.

The first phase of the extension consists of a seven-kilometer stretch with five stations between the Redemptorist Church area in Baclaran and Dr. Santos Ave. in Parañaque.

The remaining three stations are scheduled for completion in 2022.

Once LRT-1’s Cavite extension opens to the public, the DoTr expects daily ridership along the entire line to increase to 800,000 passengers from 500,000, and Baclaran-Bacoor travel time to be cut to 25 minutes from up to two hours.

LRMC is the joint venture of Ayala Corp., Metro Pacific Light Rail Corp. and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd. It holds the P65 billion, 32-year PPP contract to operate LRT-1 and build its extension to Cavite.

Metro Pacific Investments Corp. is one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Mounting bill for Malaya plant upkeep forces PSALM to seek negotiated sale

THE Power Sector Assets and Liabilities Management Corp. (PSALM) will seek approval to pursue a negotiated sale for the 650-megawatt Malaya Thermal Power Plant, citing unsustainable maintenance costs and following years of failed auctions to dispose of the rarely-used facility, the Department of Energy (DoE) said.

“PSALM shall proceed and get Board approval to immediately commence the negotiated process of privatization,” the DoE said in its 37th Electric Power Industry Reform Act (EPIRA) Implementation Status Report. The report covers developments and updates on the power industry operating under EPIRA between May to October 2020.

The DoE said it costs about P1.2 billion a year to maintain the plant, located in barangay Malaya, Pililla, Rizal.

“PSALM (seeks) to dispose of said assets due to increasing substantial losses in continuously maintaining it. Based on the losses for the last 10 years (2010 to 2019), the average annual net loss of PSALM… is P1.2 billion,” the DoE said.

In 2014, the DoE classified the plant as a “must-run unit” (MRU), defined by the Wholesale Electricity Spot Market as a generating unit that is required to operate only when required for energy security.

While PSALM was running Malaya as an MRU between 2015 to 2019, PSALM sustained average yearly net losses of P556.2 million, the DoE said.

In September, PSALM declared a failure of its third-round auction to sell the plant and the underlying land. The two pre-qualified bidders, Panasia Energy, Inc. and AC Energy Philippines, Inc., did not submit bids.

The auction floor price was set at P2.19 billion, less than half of the previous round’s floor price of P4.48 billion.

Last month, the PSALM sold via auction real estate assets in Bohol and Cagayan provinces. The winning bidder for PSALM’s Loboc, Bohol and Camalaniugan, Cagayan properties were Sta. Clara Power Corp. and Cagayan II Electric Cooperative, respectively.

PSALM is privatizing assets to settle financial obligations assumed from the National Power Corporation. — Angelica Y. Yang

PHL migrant population growth among world’s top 5 in past 20 years — UN

THE GROWTH in the Philippines’ migrant population was the fifth-largest between 2000 and 2020, behind India, Syria, Venezuela and China, according to a study conducted by the United Nations (UN).

“Between 2000 and 2020, the size of the migrant population abroad grew for nearly all countries and areas of the world. India experienced the largest gain during that period (nearly 10 million), followed, in order of magnitude, by the Syrian Arab Republic, the Bolivarian Republic of Venezuela, China and the Philippines,” the UN Department of Economic and Social Affairs (DESA) said in its “International Migration 2020 Highlights” report released Friday.

It estimated the migrant Filipino population at 6.1 million as of mid-2020, the largest such number in Southeast Asia, followed by Indonesia with 4.6 million nationals residing outside the country.

It said the number of migrants slowed last year due to the closure of borders during the coronavirus disease 2019 (COVID-19) pandemic.

The number of persons living outside their country of origin increased by 48 million between 2000 and 2010, and by another 60 million between 2010 and 2020.

This brought the total international migrant population to 281 million last year, or under 4% of the global population.

“In addition to living standards and wage differentials, migration decisions are shaped by a range of other factors, including individual aspirations, preferences and opportunities,” UN DESA said in the report.

“Flows of remittances to low- and middle-income countries are projected to decline in 2020 compared to pre-COVID-19 levels. For many countries, the reduction of remittances is likely to have serious financial and social impacts which, together with the contraction of other international financial flows due to the pandemic, will require national strategies and international cooperation to mitigate their effects,” it added.

The Philippines is among the leading destinations of remittances due to the size of the overseas Filipino worker population, sustaining consumer-driven growth that also cushions the economy from external shocks.

Cash remittances to the Philippines rose 0.3% year on year to $2.379 billion in November, according to the central bank. — Beatrice M. Laforga

Coconut, calamansi touted for market potential in Europe

THE Department of Trade and Industry (DTI) said Monday that it will help producers interested in exporting coconut, calamansi, carrageenan, and moringa to Europe, where they are expected to sell well.

“A market study found that coconut, calamansi, carrageenan, and moringa have big potential in European markets. Other Philippine agricultural products cited were ube, turmeric, butterfly pea flower — from which tea is made — and the elemi tree — a source of resin and medicine. The demand is driven by healthy lifestyle choices and using natural ingredients in manufacturing cosmetics and medicines,” the Trade department said in an e-mail.

Trade Undersecretary Abdulgani M. Macatoman said: “We invite all Philippine producers of the mentioned natural ingredients to take the leap and start exporting.”

“If you have apprehensions, the DTI-Export Marketing Bureau (EMB) will help you become export-ready and connect you with foreign buyers,” he added.

The Swiss Import Promotion Program, in partnership with DTI-EMB and the Embassy of Switzerland in Manila, conducted the market study last year.

Citing the study, the DTI noted that there has been a growing demand for virgin coconut oil (VCO) in Europe.

“The Philippines is the world’s main producer of VCO and the second-largest producer of coconut products after Indonesia,” it noted.

The DTI said annual exports of VCO as of November 2020 amounted to $74 million.

Calamansi is another emerging export product, the DTI said. The country exports only at $60,000 as of November last year.

There is also strong demand for carrageenan in Europe.

“The Philippines is the largest producer of carrageenan, accounting for around 77% of the global supply. Global export of carrageenan amounted to $147 million in January to November 2020,” the department said.

As for moringa, potential markets are Germany, the UK, France, the Netherlands, Italy, and Spain. — Arjay L. Balinbin

Extended ‘lifeline’ power subsidy for poor passes on 3rd reading in Senate

A MEASURE extending until 2031, the lifeline power rate subsidy granted to low-income households was approved in the Senate on third and final reading Monday.

With 19 affirmative votes, zero negative and one abstention, the chamber passed Senate Bill No. 1877 which proposes to amend Republic Act No. 9136, the Electric Power Industry Reform Act (EPIRA).

The law first provided a lifeline subsidy for 10 years, starting 2001. It was extended by another 10 years in 2011.

The bill will cover marginalized end-users, particularly households consuming up to 100 kilowatt hour per month.

This may include beneficiaries of the Pantawid Pamilyang Pilipino Program or those who applied or were certified by their respective distribution utilities, based on criteria set by the Energy Regulatory Commission.

The measure is intended to aid low-income households who have also been affected by the coronavirus pandemic.

Malaking kaluwagan ito sa mga kababayan nating patuloy na nagdarahop dala ng kawalan ng pinagkakakitaan na lalo pang pinalala ng nararanasan nating pandemya (This is a great relief for Filipinos who continue to struggle due to income loss, worsened by the pandemic),” Senator Sherwin T. Gatchalian said in a statement Monday.

Sa pamamagitan ng panukalang ito, makakaasa silang hindi mapuputol ang ayudang tinatamasa ng dalawang dekada na. (Through this measure, they can expect that the subsidy they have availed of in the past two decades will continue).”

Mr. Gatchalian, chairman of the energy committee, said if enacted, the bill will benefit some 5.5 million households. He estimated the measure will lead to P900 in annual savings on electricity expenses.

Senate President Vicente C. Sotto III, the lone abstention, said he did so as a non-supporter of the underlying EPIRA law.

“The reason I abstained is for consistency because in 2001 I abstained on the EPIRA law,” he said during Monday’s session.

“We did not believe in the EPIRA,” he said referring to himself and to former Senator Juan F. Ponce Enrile, who voted against the measure. — Charmaine A. Tadalan