Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 7271

How PSEi member stocks performed — November 11, 2020

Here’s a quick glance at how PSEi stocks fared on Wednesday, November 11, 2020.

How did each segment contribute to the economic drag in the third quarter?

How did each segment contribute to the economic drag in the third quarter?

Peso ends flat vs dollar

THE PESO was flat versus the dollar on Wednesday as the growth of domestic liquidity and bank lending eased in September and amid developments in trials of vaccines for the coronavirus disease 2019 (COVID-19).

The local unit closed at P48.27 versus the dollar on Wednesday, unchanged from its Tuesday finish, data from the Bankers Association of the Philippines showed.

The peso opened Wednesday’s session at P48.35 versus the greenback, which was also its weakest showing. Its intraday best was logged at P48.25 per dollar.

Dollars traded declined to $507.9 million on Wednesday from $710.6 million the previous day.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso closed flat versus the dollar after the release of Bangko Sentral ng Pilipinas data showing slower growth in domestic liquidity and bank lending in September.

Money supply growth continued to ease in September on slower bank lending, with banks turning cautious in disbursing credit amid the coronavirus pandemic, which has plunged the country into a recession.

M3, which is considered as the broadest measure of liquidity in an economy, grew by 12.3% in September, easing from the downward-revised 13.7% pace logged the previous month, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

Liquidity growth has slowed for four consecutive months since June’s 14.9% pace.

BSP data released separately showed outstanding loans extended by universal and commercial banks grew by 2.8% in September, easing from the 4.7% in August and marking the slowest pace since the 2.4% seen in June 2007.

Inclusive of reverse repurchase agreements, bank lending growth also slowed to 2.9% from the 5.6% logged the previous month.

A trader added that the peso was steady as the market waits for further developments on COVID-19 vaccines.

Pfizer Inc. announced on Monday that its COVID-19 vaccine candidate, developed with BioNTech, showed a 90% success rate in preventing infection during trials, Reuters reported.

However, the dollar nursed losses on Wednesday as optimism about a potential coronavirus vaccine was offset by worries about how the drug will be delivered and by a surge of new infections in the United States.

Initial optimism about coronavirus vaccine testing pushed the dollar up against the safe-harbour yen and the Swiss franc, but this momentum is starting to fade because there are still several obstacles to clear before a vaccine can be distributed.

The dollar held steady at 105.28 yen, trading near a three-week high.

Against the euro, the dollar was little changed at $1.1822.

The dollar index against a basket of six major currencies steadied at 92.741.

The onshore yuan capitalised on the dollar’s weakness and rose to 6.6001.

Other Asian currencies, such as the Korean won and the Singapore dollar, also gained against the greenback.

For today, Mr. Ricafort sees the peso moving from P48.23 to P48.33 versus the dollar, while the trader expects it to range from P48.25 to P48.35. — KKTJ with Reuters

Index slips as investors pocket profits from rally

By Denise A. Valdez, Senior Reporter

THE MAIN INDEX posted losses on Wednesday but remained above the 7,000 mark as some investors resorted to profit taking after Tuesday’s rally.

The 30-member Philippine Stock Exchange index (PSEi) dropped 11.22 points or 0.15% to close at 7,024.26, while the wider all shares index picked up 6.33 points or 0.15% to end at 4,102.80.

“The PSEi ended slightly lower today (Wednesday) but mainly flat as selling picked up on issues that saw an incredible rally the day before,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.

The index opened weaker at 6,968.93 and spent the early hours of trading in red territory, hitting a low of 6,944.11 before picking up in the last hour. It reached a high of 7,079.18 before settling a little lower at the session’s close.

“This is what we expected due to the ‘too far, too fast’ rally in several large-cap issues. Other blue chips like Bank of the Philippine Islands (+4.14%), Metropolitan Bank & Trust Co. (+4.29%) and Megaworld Corp. (+5.22%), which have not climbed as much as the others, ended with substantial gains today,” Mr. Mangun said.

On Wednesday, some index heavyweights such as SM Investments Corp. (-4.64%) and JG Summit Holdings, Inc. (-2.70%) were taken over by selling pressure, which pulled the PSEi lower, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said.

“Nonetheless, optimistic signs were seen conveying that bullish investors are still getting into the market. First, our advancers edged decliners 139 to 70 giving us a positive market breadth. At the same time, foreigners were net buyers with net inflows this Wednesday, amounting to P2 billion,” Mr. Tantiangco said in a text message.

Net foreign buying was at P1.99 billion, lower than the previous session’s P2.28 billion.

“We continue to see high trading volumes as there is a lot of interest from investors due to the improving sentiment. The main index was able to end above the 7,000 key level and may establish strong support at this level,” AAA Southeast Equities’ Mr. Mangun added.

Most sectoral indices ended Wednesday’s session higher. Financials grew 21.91 points or 1.65% to 1,348.05; mining and oil rose 105.52 points or 1.29% to 8,280.71; industrials added 109.05 points or 1.20% to 9,194.64; and property climbed 20.62 points or 0.59% to 3,477.66.

On the other hand, holding firms declined 121.67 points or 1.63% to 7,324.56, and services shed 1.93 points or 0.12% to 1,542.32 at the end of trading.

Some 2.24 billion issues valued at P27.77 billion switched hands on Wednesday, slightly lower than the previous day’s 2.44 billion issues worth P13.08 billion.

Gainers outnumbered losers, 139 to 70, while 49 names closed unchanged.

Duterte says vaccines may be funded by loan

By Gillian M. Cortez and Vann Marlo M. Villegas, Reporters

PRESIDENT Rodrigo R. Duterte on Tuesday said the government might borrow $300 million to finance its vaccination program for the coronavirus, which has sickened more than 400,000 and killed almost 8,000 people in the Philippines.

In a televised address, Mr. Duterte said Finance Secretary Carlos G. Dominguez III would find the money so the state could buy the vaccines.

“That is a lot already,” he said of the amount. He said vaccine supply could be a challenge since countries with promising clinical trials of the vaccines would prioritize domestic distribution.

“You can expect that within the few months until next year, all of those vaccines produced will be used for the Americans,” Mr. Duterte said. It would be the same for countries in Europe, he added.

Many countries are racing to develop a vaccine that will beat the virus that has infected almost 52 million and killed 1.3 million people worldwide.

Mr. Duterte last month said the government had funds to buy coronavirus vaccines, but it needed more so the entire population of more than 100 million could be inoculated.

He said he would look for more funds so all Filipinos could be vaccinated. The President said he was okay with vaccines developed either by Russia or China.

Mr. Duterte said he had spoken with outgoing Russian Ambassador Igor A. Khovaev and was told that Russia intends to set up a pharmaceutical company in the Philippines that will make the vaccines available here.

He said soldiers and the police would be among the first ones to be vaccinated, along with poor Filipinos.

The Philippines will try to order 50 million coronavirus vaccine units for 25 million Filipinos next year, Carlito Galvez, Jr., the country’s vaccine czar, earlier said.

The government was in talks with embassies in other countries for a government-to-government arrangement for vaccine supplies, he said. He said preparations and planning for the national vaccination program could take six months.

The “best case scenario” is having vaccines available by May to July through COVID-19 Vaccines Global Access (COVAX) facility and bilateral agreements, Mr. Galvez said.

SINOVAC REVIEW
The Department of Health (DoH) reported 1,672 coronavirus infections on Wednesday, bringing the total to 401,416.

The death toll rose by 49 to 7,710, while recoveries increased by 311 to 362,217, it said in a bulletin.

There were 31,489 active cases, 83.3% of which were mild, 9.4% did not show symptoms, 4.6% were critical and 2.5% were severe.

Cavite reported the highest number of new cases at 100, followed by Davao City at 99, Quezon City at 81, Batangas at 78 and Baguio City at 70.

Five duplicates were removed from the tally, while 10 cases previously tagged as recovered were reclassified as deaths, the agency said. Eight laboratories failed to submit their data on Nov. 10, it added.

Meanwhile, the government would review the application of vaccine maker Sinovac Biotech Ltd., for clinical trials in the country after it halted trials in Brazil, Health Undersecretary Maria Rosario S. Vergeire told an online news briefing on Wednesday.

Brazil’s health authorities halted clinical trials of the Chinese-developed COVID-19 vaccine due to a “serious adverse event.” Reuters reported on Nov. 10. The halt was not related to the vaccine trial itself, the news agency said, citing the Health secretary for the state of Sao Paulo.

The vaccines had shown no serious effect, according to Reuters, citing Dimas Covas, head of the institute conducting the trial.

Ms. Vergeire said Sinovac has the responsibility to inform the Philippine government of the developments because they have applied for clinical trials here.

Once official documents or reports on the adverse effects arrive, the Science and Technology department’s vaccine expert panel and the local Food and Drug Administration (FDA) would review these, and only then will they decide if the trials will push through.

The expert panel has approved Sinovac’s application for clinical trials here. Its ethics board had yet to approve the application, which must get the nod before it can seek approval from the FDA.

Philippines won’t end military deal with US just yet, defers termination for 6 months

THE PHILIPPINES won’t end a military pact with the US on the deployment of troops for war games just yet, after it extended the suspension of its termination for six more months, according to its top envoy.

The suspension would allow the Philippine government to “find a more enhanced, mutually beneficial, mutually agreeable and more effective and lasting arrangement on how to move forward in our mutual defense,” Foreign Affairs Secretary Teodoro L. Locsin, Jr. said on Twitter, citing President Rodrigo R. Duterte.

The Department of Foreign Affairs (DFA) sent a taped statement to White House National Security Adviser Robert O’brien in announcing the decision.

Mr. Duterte in February said he was ending the two-decade visiting forces agreement (VFA) after the US Embassy canceled the visa of Senator Ronald M. dela Rosa, his former police chief who led his deadly war on drugs.

He suspended the termination for six months in June, citing heightened tensions in the region and saying it was a distraction to countries’ anti-coronavirus efforts.

“A great deal of credit for the renewal of stability and security goes to deft diplomacy, unequivocal expressions of policy, sturdy postures of strength combined with unfailing tact, and pragmatic national security advice exhibited by both our governments in the same period,” he said then.

DFA earlier said the termination of the VFA would take effect after 69 days, if the suspension was not extended.

The VFA, which allows the US to shield its servicemen from prosecution in the Philippines, has been a thorny issue for Filipino patriots who see it as a lopsided deal. The US has used the VFA at least twice to keep accused soldiers under its jurisdiction. Mr. Locsin in February said the Philippines received $267.75 million in military financing from the US between 2016 and 2019.

He said the US had also planned to spend about $200 million for the Philippines in the two years through 2021, which probably won’t proceed without the VFA.

Some Philippine lawmakers are concerned that without the VFA, two other pacts that make up the long-standing US alliance with Manila would be irrelevant, namely the 2014 Enhanced Defense Cooperation Agreement made under the Obama administration, and a 1951 Mutual Defense Treaty.

Ending the VFA complicates Washington’s efforts to maintain an Asia-Pacific troop presence amid friction over the presence of US personnel in Japan and South Korea and security concerns about China and North Korea.

Washington has called the relationship “ironclad” despite Mr. Duterte’s allegations of US hypocrisy and ill treatment. — Charmaine A. Tadalan

Robredo rejects Marcos inhibition plea

VICE President Maria Leonor G. Robredo has opposed a plea by losing vice presidential candidate Ferdinand R. Marcos, Jr. and the Office of the Solicitor General for a magistrate to inhibit himself from his election protest due to alleged bias.

In a 12-page counter-manifestation, Ms. Robredo told the Presidential Electoral Tribunal it was Mr. Marcos who had caused the delay after he refused to accept the election results.

“The delay in the resolution of this election protest can only be ascribed to the steadfast refusal of protestant Marcos to accept the plain and simple truth — he lost, not once but twice,” according to a copy of her plea.

Ms. Robredo said Mr. Marcos “follows the same frivolous route” he took when he sought the inhibition of Associate Justice Alfredo Benjamin S. Caguioa in 2018 also for alleged bias. The tribunal denied his plea then.

Mr. Marcos has cited Mr. Leonen’s bias against the Marcos family, citing his dissent on a Supreme Court ruling that paved the way for the government to give his late father, the late dictator Ferdinand E. Marcos a hero’s burial.

“To follow the logic and reasoning of the protestant Marcos would result in an absurdity if not the inhibition of most, if not all the members of the honorable tribunal,” Ms. Robredo said.

She said the 10 justices who voted to allow the burial of the dictator at the Libingan ng mga Bayani could be accused of bias against her, following Mr. Marcos’s argument.

“Are the members of the high tribunal who have been appointed by President Duterte now biased in favor of protestant Marcos?” she added, noting that President Rodrigo R. Duterte had favored giving the strongman a hero’s burial.

Mr. Marcos filed the protest in June 2016 after narrowly losing to Ms. Robredo, alleging widespread fraud. In the Philippines, the President and vice president are elected separately and can come from different political parties.

Both are barred by law from seeking reelection. Their six-year terms will end in 2022.

A resolution released in October last year showed that Ms. Robredo’s lead against Mr. Marcos in the pilot provinces of Camariñes Sur, Iloilo, and Negros Oriental — where he alleged cheating took place — rose by about 15,000 votes after the initial recount.

The tribunal this week warned parties in the election protest not to discuss the case to the media.

The court’s Public Information Office said the tribunal had reiterated its order for the parties to “strictly observe the sub judice rule,” which bars anyone from issuing comments that could interfere with the court’s handling of the suit. The court said any violations would be dealt with more severely. — Vann Marlo M. Villegas

Congress urged to realign budget for buildings

A SENATOR on Wednesday urged Congress to realign a portion of the P68-billion budget for multipurpose buildings next year after flagging 5,913 local infrastructure projects that were poorly built.

The money should be spent for the construction of evacuation centers and quarantine facilities, as well as the national broadband program, Senator Panfilo M. Lacson said during Wednesday’s debates on the P4.5-trillion budget for next year.

He presented photos of multipurpose buildings that were barely built after receiving at least P5 million funding since 2017.

He cited a multipurpose building in Bacnotan, La Union, which received P15.6 million in funding from the national budget for 2017, 2019 and 2020. The project had been allotted another P5 million for 2021, he said.

The building was still not completed, Mr. Lacson said.

He also identified road projects, including a bypass road in Cagayan de Oro City, whose construction was halted after a regional director of the Department of Public Works and Highways (DPWH) found it was unfeasible.

Mr. Lacson said the government had provided as much as P1.4 billion for the project since 2015 and was allotting another P414.5 million under the 2021 budget.

“Should we still appropriate P414 billion after spending P1.3 to 1.4 billion on a project that is no longer feasible?” he asked in Filipino.

Senator Juan Edgardo M. Angara, finance committee chairman, said he would consider Mr. Lacson’s proposals.

Meanwhile, Quezon City Rep. Alfred D. Vargas asked Congress to set aside funds for the recovery and rehabilitation of areas affected by Typhoon Goni, locally named Rolly, in the national budget for next year.

The world’s strongest storm this year destroyed almost 100,000 houses mostly in the Bicol region in eastern Philippines, and caused damage to infrastructure worth more than P11 billion.

Damage to agriculture has reached more than P2.9 billion, affecting 65,897 hectares of land.

“With the country experiencing La Niña until March next year, we must use the budget as an instrument for the recovery and rehabilitation of areas that have been devastated by Super Typhoon Rolly,” Mr. Vargas said in a statement on Wednesday. — Charmaine A. Tadalan and Kyle Aristophere T. Atienza

Nationwide round-up (11/11/20)

DoLE recommends lifting of ban on deployment of healthcare workers

THE Department of Labor and Employment (DoLE) said it has recommended the lifting of the temporary deployment ban on healthcare workers, but with a limit on the number that will be allowed to leave.

“We recommend the lifting of the temporary suspension but with a (maximum number of workers of)… only 5,000 annually,” Labor Secretary Silvestre H. Bello III said in a briefing on Wednesday.

The limit will be in effect while the coronavirus outbreak remains a global threat.

The recommendation is contained in a draft resolution of the national task force handling the coronavirus response.

“We are just waiting for the approval (of the President),” Mr. Bello said.

He explained that the proposed deployment cap will “give an assurance” that the Philippines will not run out of medical workers.

The government imposed the deployment ban in April, but has since relaxed the restriction by allowing those with existing contracts on or before August 31 to leave. — Gillian M. Cortez

Privacy agency investigating lisensya.info site

THE National Privacy Commission (NPC) is investigating a website that posed as associated with the Land Transportation Office (LTO) for possible breach of personal information of registered motorists.

The LTO submitted a breach report on Tuesday confirming that the website lisensya.info is not officially connected with them.

NPC is already processing a cease and desist order to take down the site.

However, the website continues to run as of Wednesday, while LTO’s official site lto.net.ph is down.

In a press release on Wednesday, Privacy Commissioner Raymund E. Liboro said the commission will verify the incident and investigate the extent of possible harm on motorists.

“NPC is coordinating with the Data Protection Officer (DPO) of the LTO for us to be provided with more details of the incident,” he said.

The website offers a “motor vehicle authenticator” function, which would show vehicle information such as plate number, registration expiry date, and owner name after the input of a motor vehicle file number.

NPC said some users found the data on the website accurate, flagging a possible leak of the LTO database.

“These are the types of information the LTO collects from motorists for registration,” the commission said.

A media representative from the NPC told reporters in a Viber message that the commission is scheduling a meeting with the LTO while it gathers evidence.

NPC’s initial probe found that the website has neither a privacy notice nor the contact details of its owner. — Jenina P. Ibañez

Duterte dangles reward to informants of corrupt activities

PRESIDENT Rodrigo R. Duterte has promised informants can receive up to P100,000 if they come forward with verifiable leads on corruption within the government.

In a televised speech on Tuesday, Mr. Duterte said anyone who can give him tips regarding anomalies that involve large-scale government contracts is assured of protection as well as a monetary reward of at least P50,000.

“I will keep your identity secret until I reach my grave. Hindi ko kayo bubukuhin, hindi ko kayo ipapasubo (I will not reveal your name, I will not get you into trouble),” he said.

The President made the offer as part of his anti-corruption campaign, following a directive to the Justice department last month to create a “mega task force” that will investigate government officials and personnel involved in anomalous transactions.

Mr. Duterte earlier this week summoned around 40 government officials, mostly from the Bureau of Immigration, found involved in misconduct and other work-related violations. — Gillian M. Cortez 

350,000 Filipinos in US facing deportation

ABOUT 350,000 Filipinos in the United States are facing deportation, but appeals for longer residency have a better change of being granted under the incoming administration under President-elect Joseph Biden, according to the Philippine Embassy in the US.

In a briefing on Wednesday, Philippine Ambassador to the US Jose Manuel Romualdez said, “Meron tayong (We have) 350,000 pending cases of deportation” in immigration courts.

He said it is “possible” that “changes might occur during the presidency of President-elect Biden” in terms of immigration policies.

President Donald Trump laid out hard-line immigration policies since his election in 2016.

Malacañang Palace earlier said it hopes that under the Biden administration, the US will relax its immigration policies, which would allow undocumented Filipinos to become legal citizens of the country. — Gillian M. Cortez 

Coronavirus top of agenda as ASEAN leaders meet

PRESIDENT Rodrigo R. Duterte will participate in the 37th ASEAN Summit starting Thursday, where southeast Asian leaders will discuss online recovery plans from the coronavirus pandemic.

In a statement on Wednesday, the Palace said the President will be discussing with other members of the Association of Southeast Asian Nations (ASEAN) the

Philippines’s response to the crisis, common measures that the region can take as well as other regional concerns, including the disputed South China Sea.

“He (Mr. Duterte) will advance Philippine positions on public health emergencies cooperation, regional economic integration, migrant workers’ rights, climate change, risk reduction management, counter-terrorism, and the South China Sea issue.”

The 37th ASEAN Summit and Related Summits will be chaired by Vietnam.

Ten outcome documents are expected to be adopted by the member states.

The ASEAN is composed of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. — Gillian M. Cortez

Regional Updates (11/11/20)

Police partners with Cardinal Santos Medical Center for medical services, training assistance

THE Cardinal Santos Medical Center (CSMC) recently signed an agreement with the Philippine National Police (PNP) to provide medical services to members of the force. In a statement on Wednesday, the private tertiary hospital said the partnership “will allow members of the PNP to have access to CSMC for their hospitalization and other diagnostic and therapeutic medical needs.” Further, CSMC will give training and skills development exercises to PNP medical professional personnel. The memorandum of agreement was signed Nov. 9 in Camp Crame by CSMC President and Chief Executive Officer Raul C. Pagdanganan and Gen. Camilo Pancratius P. Cascolan, who retired from the PNP on Nov. 10. CSMC is a 269-bed hospital located in Greenhills, San Juan.

Bislig Bay now also red tide positive; previous areas still contaminated

THE BUREAU of Fisheries and Aquatic Resources (BFAR) has warned consumers from eating shellfish harvested in Bislig Bay in Surigao del Sur after the area tested positive for red tide contamination. In its 25th shellfish bulletin, BFAR said Bislig Bay adds to the long list of red tide positive regions. These are: Bataan, particularly the areas of Mariveles, Limay, Orion, Pilar, Balanga, Hermosa, Orani, Abucay, and Samal; Honda and Puerto Princesa bays and Inner Malampaya Sound in Palawan; Milagros in Masbate; Dauis and Tagbilaran City in Bohol; and Tambobo Bay in Negros Oriental; Daram Island, Zumarraga, Irong-irong, San Pedro, Maqueda, and Villareal Bays in Western Samar; Cancabato Bay and Carigara Bay in Leyte; Matarinao Bay in Eastern Samar; Balite Bay in Davao Oriental; Lianga Bay and Hinatuan in Surigao del Sur; and Dumanquillas Bay in Zamboanga del Sur. All types of shellfish and Acetes sp. or alamang harvested from these areas are not safe for human consumption. Other marine species, however, can be eaten with proper handling. — Revin Mikhael D. Ochave 

Typhoon Ulysses halts power restoration in areas hit by previous storm

POWER restoration work in areas hit by typhoon Rolly (international name: Goni), the world’s strongest tropical cyclone so far this year, had to be halted Wednesday as another typhoon swept through the same parts of the country. The National Electrification Administration (NEA) reported that as of Nov. 11, about 25% of the more than two million affected households remain without power. NEA said supply has been restored to 74.31% or around 1.55 million households in the Bicol region and other areas. Meanwhile, Energy Undersecretary Felix William B. Fuentebella said they are aiming to have power fully restored “before Christmas” in the island province of Catanduanes, one of the hardest hit areas. “We are targeting 100% of Catanduanes before Christmas. We are targeting the sentro (the capital town of Virac) by Nov. 13,” Mr. Fuentabella said during a House committee briefing on Wednesday. He said equipment and some personnel “are already on the ground.” Catanduanes Governor Joseph C. Cua earlier said 90% of power poles around the island were toppled by typhoon Rolly, which made landfall in the province while under a super typhoon category. — Angelica Y. Yang and Kyle Aristophere T. Atienza

Plastics firms warn of closure if tariffs imposed on suppliers

PLASTICS MANUFACTURERS said they may be forced to close down factories if their supply of raw materials is hindered by safeguard tariffs.

The Philippine Plastics Industry Association, Inc. (PPIA) issued the warning in the process of contesting the safeguard measures proposed by the country’s sole domestic supplier of such materials, JG Summit Petrochemical Corp. (JGSPC).

JGSPC applied for a safeguard measures investigation into some imported resins used in plastic products, the Department of Trade and Industry (DTI) said in September. The company said that a surge in resin imports has caused it substantial injury.

The Safeguard Measures Act, or Republic Act No. 8800, allows domestic producers to ask the government to conduct an investigation into their import competitors if they claim to have been injured by excessive imports. The government can then impose temporary safeguard tariffs if it comes to a determination that domestic companies suffered injury.

High-Density Polyethylene (HDPE) and Linear Low-Density Polyethylene (LLDPE) resins are used in manufacturing consumer and industrial packaging.

The PPIA said safeguards would hinder plastics production by domestic firms.

“Philippine plastic manufacturers are at severe threat of factory closure (due to) lack of raw material supplies. The plastic industry is of significant national interest, with multiple industries now utilizing and depending on plastic materials for their products,” PPIA President Danny Ngo said in a statement Tuesday.

PPIA said that JG Summit Petrochemical Corp. has not fulfilled its October and November supply commitments.

“With JSGPC being the sole domestic supplier, there will not be enough time for the local manufacturers to import their raw material needs to keep the factories running and we will have no choice but to shut down,” Mr. Ngo said.

He said that buffer stocks for raw and finished materials are at an “all time low” as their finances deteriorate.

The industry group added that safeguards could lead to the Philippine market being flooded with imported plastic goods from countries with low production costs.

The DTI, after reviewing JGSPC’s application, said there is evidence to justify a preliminary investigation into safeguard measures.

The department’s initial findings indicate a significant increase in imported HDPE and LLDPE between 2015 and 2019, which preceded JGSPC’s loss of market share.

BusinessWorld asked JG Summit Holdings, Inc. to comment but it had not replied at deadline time. — Jenina P. Ibañez

Below-average holiday boost seen in fast-moving consumer goods sales

grocery
BW FILE PHOTO

THE surge in fast-moving consumer goods (FMCG) sales during the holidays will be lower than the usual 20% seen in previous years, a market research company said.

Kantar Worldpanel Division Philippines General Manager Marie Anne Lezoraine said that rising unemployment and the continued rise of coronavirus cases has kept the FMCG sector from fully recovering.

Kantar cited reduced shopper mobility, limited outlet operations due to the quarantine, limited consumer purchasing power, and uneven availability of products in stores.

Ms. Lezoraine said in a briefing Wednesday that Philippine consumer spending on FMCG declined significantly on a per buyer basis well as by frequency of consumption during the strictest portion of the lockdown. Spending per trip, on the other hand, rose initially.

“Initially people spent more on each occasion — in the very first period of ECQ (enhanced community quarantine), and that is because people stocked up on the essentials,” she said.

“But over time the basket value came back to pretty much the same level to how much it was just before ECQ.”

The restrictions during the strictest part of the lockdown had a major impact on consumption because Filipino buyers are frequent FMCG shoppers, making purchases almost every day.

While she said predictions are difficult, Kantar analyzed whether Filipinos are likely to save up or purchase more goods during the holidays.

“We do have evidence that shoppers have cut on their FMCG expenditure,” she said.

She said consumers in the higher socio-economic classes increased their FMCG purchases in the first nine months, spending mainly on food, while those in lower socio-economic classes cut their expenditures, especially on beverages, home, and personal care items.

Kantar is also seeing some stabilization in purchases, which may improve if coronavirus cases do not rise significantly and mobility restrictions are relaxed.

On average, the boost to FMCG sales is 20% during the holidays, with more than half of households receiving FMCG gifts, Kantar said.

With less restrictive lockdown policies in place, Ms. Lezoraine said she believes there will be an increase in FMCG expenditures for Christmas.

“I think it’s likely to be a lower level than we’ve seen in previous years because budgets are probably more limited, but we do see the desire from shoppers to still celebrate Christmas,” she said.

Around 30% of consumers surveyed by Kantar remain “very worried” about their financial status over the next six months. But 80% said they are willing to spend more to celebrate at home during special occasions, including Christmas.

“We really see people wanting to celebrate Christmas, but most likely quite different than any previous year,” Ms. Lezoraine said. — Jenina P. Ibañez

1...7,2707,2717,272...12,677Page 7,271 of 12,677
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube