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Davao coconut processing plant may export to China

DAVAO CITY — Investors from the Chinese province of Hainan are planning to set up a coconut processing plant in Davao City, the first of various ventures and trade arrangements that were initially discussed in 2019.

Sebastian L.  Angliongto, international relations committee chair of Davao City business chamber, said the potential investment will come from members of the Hainan International Export Cooperative Association (HIECA).

He said HIECA’s international relations committee chair has informed him that the investors are considering operations like making charcoal, oil, juice, and other coconut products for export to China.

“Hainan investors will come to Davao City to invest in the fruit processing plant and export the finished products to Hainan,” Mr. Anglionto said in a phone interview last week.   

Other ventures being considered involve other tropical agricultural products shared by the two partner regions. Hainan’s main crops include coconuts, rice, sisal, and tropical fruits.

Over the long term, the Chinese businesses are considering an industrial park and other real estate investments. — Maya M. Padillo

Maxus shaves P50K off T60 price

MAXUS PHILIPPINES is offering its pickup product, the T60, at P50,000 off for all variants. The T60 Pro 4×2 MT is now priced at P948,000, the T60 Pro 4×2 AT at P1.028 million, and the T60 Elite 4×4 AT at P1.278 million.

The brand positions the T60 as one that can “accommodate the varying needs of Filipino pickup owners whether for city or countryside driving.” It bears upsized dimensions, and promises enhanced comfort and capability in terms of legroom, payload capacity, towing power, and wading depth.

Maxus also says the T60 is the longest in its class. Powered by a 2.8-liter turbodiesel engine with variable geometry turbocharger and Drive Mode Select, drivers can access the performance through a six-speed manual or automatic transmission producing maximum power of 150ps at 3,400rpm and maximum torque of 360Nm at 1,600-2,800rpm propel the vehicle with ample power, efficiency, and reliability.

Standard exterior features of the T60 include automatic headlights, rain-sensing wipers, front and rear fog lamps and electric outside rearview mirror; LED headlights with daytime running lights are available for the 4×4 variant.

The car-like cabin design of the T60 are highlighted by a touchscreen monitor, multifunction steering wheel with cruise control, and keyless entry. The T60 Elite 4×4 comes with additional interior amenities such as leather seats, power driver seat, push start button, 10-inch touchscreen with six-speaker infotainment system, and auto air-conditioning. It also comes in various unique color options ranging from Agate Red, Lava Gray, and Blanc White for the T60 4×2 Pro, Olive Green and Aurora Silver for the T60 4×4 Elite, while Obsidian Black is available for both variants.

All Maxus vehicles boast a five-year/100,000-km warranty and periodic maintenance service (PMS) interval schedule 15,000 km (or once a year, whichever comes first) after the first 5,000 km. Maxus Philippines also offers a 24/7 emergency roadside assistance.

For more information about the Maxus T60 4×2 Pro and 4×4 Elite, visit www.maxus.com.ph or book a test drive at any Maxus Philippines dealership. Like and follow the Maxus Philippines Facebook page and Instagram account, @maxusph.

Investors take profit after new Greenergy fintech venture

By Jobo E. Hernandez, Researcher

FINTECH partnership spree of Antonio L. Tiu-led Greenergy Holdings, Inc. in the past few weeks fueled speculation that pushed the stock to record high, prompting market players to take profit as soon as the latest deal was disclosed.

A total of 163.01 million Greenergy shares worth P739.59 million were traded from March 1 to 5, data from the Philippine Stock Exchange showed.

The stock dipped by 6.3% on a week-on-week basis to P4.31 apiece last Friday from its P4.60-per-share close on Feb. 26. Since the start of the year, the stock has jumped by 67.1%.

“Greenergy has been exceptional these past few weeks,” Mercantile Securities Corp. Analyst Jeff Radley C. See said in an e-mail last week.

“The company continues to give growth to its shareholders through various acquisitions and partnerships. They are gearing towards industries that the country lacks like e-payment, transportation, and medicine,” he said.

“With these, markets have reacted bullishly that’s why prices continued to trend up and trading at 13-year high,” he added.

Investors’ bought Greenergy for weeks as they speculated its fintech ventures, which is the main reason for the stock’s wide trading range, according to Regina Capital Development Corp. Equity Analyst Anna Corenne M. Agravio.

“Once news broke and Greenergy fully disclosed its plans, a lot of the investors took profits considering Greenergy’s share price was up 90% year-to-date at one point,” she said in an e-mail.

In a disclosure last Monday, Greenergy signed a term sheet buying ABS-CBN Corp.’s stake in U-Pay Digital Technologies, Inc. — the broadcaster’s joint venture with iBayad Online Ventures, Inc. — to the tune of P54 million, which would result in the Tiu-led holding firm owning 51% of the fintech company.

U-Pay is engaged in e-commerce as well as a licensed electronic money issuer by the Bangko Sentral ng Pilipinas.

Shares in Greenergy hit its peak on March 2 when they reached P4.94 apiece during trading, later finishing at P4.83 per share — a record high dating back to 2009.

Last Feb. 23, Greenergy entered into a share subscription agreement with manufacturing and trading firm Ocean Biochemistry Technology Research, Inc. (OBTRI) worth P3.75 million. Once the shares have been issued, it will own 60% of OBTRI.

Prior to the deal, OBTRI is 51% owned by M2000 Imex Co., Inc., a wholly owned subsidiary of another Tiu-led listed firm AgriNurture, Inc.

Meanwhile, Greenergy confirmed to the local bourse last Feb. 19 that it was in “advanced stage of negotiation” with Singapore-based fintech firm Aleta Planet Pte. Ltd. for their proposed partnership, which includes issuance of co-branded virtual accounts and remittance services.

Greenergy entered into an agreement last January with ITBS Information Technology Business Solutions to incorporate the former’s ePitaka payment platform with the latter’s Know Your Citizen platform installed in various local government units in the Philippines.

Analysts said these ventures are yet to materialize in Greenergy’s earnings in the near term as these deals are still in the initial stages.

“While the acquisition will prove profitable in the future, it likely won’t materialize in Greenergy’s earnings in the near term yet,” Ms. Agravio said.

“Greenergy can provide a variety of products to offer to the market,” Mr. See said.

Likewise, he does not see the deals influencing the company’s profitability yet as “the plans are still in the initial stages,” he added.

Greenergy is businessman’s Mr. Tiu’s diversified holding firm with interests in renewable energy, agriculture, real estate, information and technology, and waste management.

Its attributable net loss narrowed to P15.15 million in the nine months to September last year from P18.07-million loss in 2019.

For this week, Mr. See pegged the stock’s support levels at P3.50 and P3.80, while resistance levels will be at P4.60 and P4.94.

Ms. Agravio placed Greenergy’s support range at P3.70 to P3.90 and resistance at P4.60.

Yields on government debt increase

YIELDS ON government securities (GS) went up last week as inflation continued its uptrend to reach a 26-month high in February.

GS yields, which move opposite to prices, rose by an average of 12.92 basis points (bps) week on week, based on the PHP Bloomberg Valuation (BVAL) Service Reference Rates as of March 5 published on the Philippine Dealing System’s website.

Yields on benchmark tenors increased on Friday from their Feb. 26 finish, except for those on the four-, five-, and seven-year Treasury bonds (T-bonds), which declined by 0.46 bp, 2.59 bps, and 0.25 bp, respectively, to 2.7486%, 3.0011%, and 3.4789%.

The largest increases were observed in the long end of the yield curve, particularly the 20- and 25-year T-bonds which saw their rates go up by 41.06 bps (to 4.8707%) and 55.84 bps (4.8716%), respectively. The yield on the 10-year debt paper also increased by 8.76 bps to 3.9806%.

Meanwhile, the two- and three-year T-bonds were quoted at 2.185% and 2.4865%,  respectively, rising by 6.99 bps and 3.29 bps.

The shorter termed Treasury bills (T-bills) likewise posted increases in their yields. This was led by the 364-day paper’s 12.79-bp increase to 1.6834%. The 91-day T-bills also rose by 8.54 bps (to 1.0816%) and the 182-day securities added 8.19 bps (1.195%).

“Yields inched up further as investors await the February inflation data which came out at 4.7%, broadly in line with estimates but still faster than the previous month… The recent uptick in prices put upward pressure on yields and effectively on the government’s borrowing cost,” First Metro Asset Management, Inc. (FAMI) said in an e-mail.

“Inflation erodes your real interest rate. As investors’ inflation expectations adjust higher, yields will continue to move higher in the secondary market as well,” ATRAM Trust Corp. Head of Fixed Income Jose Miguel B. Liboro said.

The 4.7% headline inflation rate in February marked the fifth straight month of acceleration in the rise in prices of goods, the Philippine Statistics Authority reported on Friday. The figure was also the fastest in 26 months or since the 5.1% rate in December 2018.

The February result was within the Bangko Sentral ng Pilipinas’ (BSP) forecast range of 4.3%-5.1% for the month. It brought the year-to-date inflation average to 4.5%, also higher than the BSP’s 2-4% target for the year.

BSP Governor Benjamin E. Diokno has said the rise in inflation was caused by supply side shocks and would not merit a monetary response “unless they lead to second-round effects.”

The BSP Monetary Board at its meeting on Feb. 11 kept key interest rates unchanged at record lows. Its next review will be on March 25.

The central bank last year slashed rates by a total of 200 bps to provide support to the virus-stricken economy. This brought down the overnight reverse repurchase, lending, and deposit rates to record lows of 2%, 2.5%, and 1.5%, respectively.

“While we saw some signs of stabilization on the belly (five- to seven-year T-bonds) of the yield curve towards the end of the week, we expect upward pressures to persist,” ATRAM Trust’s Mr. Liboro said.

Meanwhile, FAMI expects the market to “remain defensive and take directional cues” from this month’s T-bond auctions.

“The movements in the US Treasuries (USTs) will also influence sentiment in the local GS space. USTs continued to sell off as [US Federal Reserve Chair Jerome Powell’s] recent speech did not mention greater quantitative easing in response to the recent rise in Treasury yields. The US 10-year yield now hovers above 1.5%,” FAMI added.

The Treasury is looking to borrow P160 billion from the local market this month: P100 billion via weekly T-bill auctions and P60 billion in fortnightly offerings of T-bonds. It is offering seven- and 10-year bonds worth P30 billion each, scheduled to be auctioned off on March 9 and 23, respectively.

Meanwhile, Mr. Powell made his remarks at a virtual Wall Street Jobs Summit last Thursday (1:05 a.m. local time), which is likely his last public event before Fed officials meet on March 16-17. While his speech reiterated the intention to keep benchmark interest rates low until employment and inflation targets have been met, he made no mention of plans to keep US Treasuries from rising, leading these debt papers to increase further. — Ana Olivia A. Tirona

Ferrari to enter Le Mans Hypercar category

FERRARI is entering the top rung of the FIA World Endurance Championship starting in 2023. The Maranello-based supercar maker announced that it is starting its Le Mans Hypercar (LMH). Ferrari is developing its LMH car and is in the design and simulation phases. The track testing program, the name of the car, and the drivers who will make up the official crews, will be announced in the future.

The Prancing Horse will be joining the series it proactively helped to establish 50 years after its last official participation in the premier class of the World Sports Car Championship in 1973. The brand has a “respectable record in closed-wheel competition with 24 world titles (most recently in 2017) and 36 victories in the 24 Hours of Le Mans.”

Said Ferrari President John Elkann: “In over 70 years of racing, on tracks all over the world, we led our closed-wheel cars to victory by exploring cutting-edge technological solutions: innovations that arise from the track and make every road car produced in Maranello extraordinary. With the new Le Mans Hypercar program, Ferrari once again asserts its sporting commitment and determination to be a protagonist in the major global motorsport events.”

Style (03/08/21)

Summer style the UNIQLO way

GLOBAL apparel retailer UNIQLO has launched its new and refreshed summer essentials line-up for 2021. Dedicated to making lives easier through clothing, LifeWear is rooted in the Japanese values of simplicity, quality, and longevity. “UNIQLO’s versatile line of summer essentials, made up of shirts, dresses, short pants, and premium and linen items, are perfect for different lifestyles and any type of summer activity whether at home or going out,” said Masayoshi Nakamura, Chief Operating Officer of UNIQLO Philippines, in a statement. For a casual work life there is the Linen Blend Kaftan Dress featuring a linen-blend fabric that provides an effortless style perfect for working at home. For men, the linen cotton stand collar shirt is a versatile basic that is designed for a laid-back or corporate feel. For the home, check out the Women’s Mid Rise Denim Shorts, designed with the authentic and vintage feel of denim, yet come in a mostly cotton material and a good stretch for a comfortable fit;  and the Women’s Linen Blend Open Collar Short Sleeve Shirt which comes in off-white, yellow, blue, and navy. Men can check out the Supima Cotton Crew Neck Short Sleeve Shirt, which combines style and function. At first glance, the shirt looks stylish with its looser fit that drapes towards the hem. When worn, the 100% Supima cotton material feels high-quality as its extra-long staple fiber guarantees strength, softness, and color retention. Pair this with the Men’s Easy Shorts (Jersey), a light and cool garment perfect for lounging at home. It comes in a variety of prints for added style. For exercise, there is the DRY-EX Crew Neck Short Sleeve, made with an extremely fast-drying fabric with anti-microbial and anti-odor properties for sweaty situations. Its highly-breathable woven surface keeps fitness enthusiasts cool, while the mesh holes dry sweat quickly. The Men’s Nylon Geared Shorts suit a more rugged lifestyle as it is made with a light and durable ripstop nylon material with an added water-repellent coating. The shorts have an above-the-knee silhouette that makes it easy to move around in, while six functional pockets can carry necessities. For more updates, visit UNIQLO Philippines’ website at uniqlo.com/ph and download the UNIQLO APP via Google Play Store or Apple Store.

CITEM joins first-ever virtual AIFFS

THE CENTER for International Trade Expositions and Missions (CITEM) will bring in 10 Philippine brands for the fully digital edition of the first virtual edition of the ASEAN International Furniture & Furnishings Show VX 2021 (AIFFS VX). Representing the best of Philippine craftsmanship in the home and lifestyle sectors at AIFFS are FAME+ exhibitors Acento Colleccions, E. Murio, Enpekei International, Goltrio, Junk Not, La Galuche, Mejore, Obra Cebuana, Prizmic & Brill, and Stonesets International. Each brand has shown its commitment to paying homage to Philippine culture through their designs. Launched in October 2020, FAME+ is CITEM’s response to the evolving and rapidly digitizing demands of trade and export. The digital trade platform improves the searchability and discoverability of its over 200 exhibitors from the home, fashion, and lifestyle (HFL) sectors to buyers and design enthusiasts across the globe. Through its digital magazine Touchpoint, FAME+ tells the story of Philippine design excellence as reflected in the materials, techniques, traditions, and people that make these export products. Organized by the ASEAN Furniture Industries Council, the AIFFS will be hosted by the Chamber of Furniture Industries of the Philippines, Inc. and will be participated in by seven ASEAN countries: the Philippines, Indonesia, Laos, Malaysia, Singapore, Thailand, and Vietnam. Visitors can interact with exhibitors on the AIFSS VX online platform from March 9 to 12, and can still view exhibitor catalogues from March 13 to 18. Visitors and buyers may log on to www.aiffsvx.com to register.

Tiangge Daily Sale at Greenhills this March

THE GREENHILLS Shopping Center — which continues to provide shoppers with everything they need from mobile and technology, local jewelry, specialty goods, everyday essentials, fashion, unique shops for collectibles, to food — is holding a month-long Tiangge Daily Sale where different retail categories will be on sale on different days. The schedule is as follows: Mobile Monday will offer discounts on mobile phones and accessories; Thrifty Tuesday will see promos on essentials such as masks, face shields, alcohol, and more; Wow Wednesday offers great deals on local products like pearls, wooden items, and hand-woven products; Techy Thursday sees price offs on cameras, speakers, laptops, and tablets; Fashion Friday offers a price cut on shoes, bags, and clothes; Savory Saturday specializes on special markdowns on delicacies; and Super Sunday where discounts of up to 70% off are offered on selected items mall-wide.

Cartier reinterprets the Tank Cintrée

FOR THE occasion of the Tank Cintrée’s 100th birthday, Cartier presents a limited edition of 150 numbered pieces, all sold before the launch, illustrating the success of the new editions of Cartier watchmaking’s signature designs. A very faithful tribute to the original model that marks its entry into the 21st century. For this new watch, the Tank was elongated and is characterized by the curvature of its case. Comfort and ergonomics, its name comes from its curved shape which allows the watch to mould itself naturally to the wrist. While the thickness of its case measures 6.40 mm today, all of its signature aesthetics remain: the “rail track,” Roman numerals, apple-shaped hands, beaded winding crown set with a sapphire cabochon and ardillon buckle bracelet. An aesthetic signature that remains unchanged since its creation in 1921, it is a watchmaking classic that is now equipped with a manufacture movement with manual winding, the calibre 9780 MC. In the Philippines, Cartier is exclusively distributed by Stores Specialists, Inc., and is located at Greenbelt 4, Shangri-La Plaza, and Solaire Resort & Casino.

Comfort by Sealy

ADMIT IT — working from home often means working from your bed. Not the best idea, say some experts. But who wouldn’t look at their bed after yet another Zoom meeting and decide to just lie down and maybe answer some e-mails then take a nap? Spending so much time in bed certainly highlights the flaws that might otherwise have been ignored. A mattress that’s too soft can initially provide comfort but actually lacks the proper support, leading to back pain and other orthopedic problems. On the other hand, a stiff mattress won’t be flexible enough to adapt to your specific body type. So it might be time to upgrade. The Sealy Posturepedic provides quality conformance, comfort and support. Its revolutionary patented spring technology, perfected over a span of 140 years, is the most advanced spring system within the mattress industry. One can choose from a wide collection of orthopedic mattresses and 5-star hotel bed sets. And for those who like working in bed, Sealy Philippines also carries the first and only spring adjustable bed system in the country.

Nuxe offers summer discounts

KNOWN for the cult-favorite multi-purpose dry oil Huile Prodigieuse, Nuxe has curated a three-step guide for one’s summer skincare routine. Plus, it is offering discounts up to 30%. The three-step process starts with cleaning with the Rêve de Miel Face Cleansing & Make-Up Removing Gel which is infused with honey and sunflower or the Rêve de Miel Face & Body Ultra Rich Cleansing Gel that’s also infused with honey and sunflower. It’s texture is thicker and honeyed for daily use on dry and sensitive skin while maintaining the hydro-lipidic film. Step 2 is hydration with the Huile Prodigieuse Beauty Dry Oil that’s packed with seven botanical oils and 98% natural ingredients that gives long-lasting hydration. It also has an anti-pollution shield effect, and now comes in a limited edition bottle for girls on-the-go. Step 3 is to protect your skin by wearing sunscreen like the Nuxe Sun Melting Face Cream SPF 50. Its melt-away texture cloaks the face in an evanescent finish and the notes of sweet orange, tiare, and vanilla. Apply the product liberally over the entire face, avoiding contact with the eyes, 30 minutes before going out in the sun. Reapply frequently, especially after swimming or towel-drying. For more nourished and well-protected lips, apply the Rêve de Miel Ultra Nourishing Lip Balm that combines honey, botanical oils and propolis. From March 13-16, save up to 20% off on Nuxe products in LazMall and Shopee Mall. For a minimum spend of P1,500, get a free Nuxe tote bag, or a free Nuxe deluxe sample for a minimum purchase of P2,500.  Buyers also get P50 off on the shipping fee plus P100 collectible vouchers. To top it all off, buyers get an additional 3% off when they buy two Nuxe products and 5% off when they buy three. Meanwhile, customers who prefer to shop in stores can head to Rustan’s Department Stores on March 13-16, and receive a free Nuxe Tote Bag for a minimum single receipt purchase of P1,500 or a free Nuxe deluxe sample for a minimum single receipt purchase of P2,500 worth of Nuxe products. Those who prefer to shop at Landmark (Trinoma, Alabang, Nuvali), Robinson’s Ermita and Look Store at SM Aura can enjoy discounts of up to 30% off on Nuxe skincare products. Promo is also valid in Rustans.com, beautybar.com.ph and lookatme.com.ph.

Rustan’s celebrates Women’s Month

RUSTAN’S The Beauty Source kicked off International Women’s Month with #GRLPWR Make It Happen — a campaign that showcases women’s stories about rising up despite challenges and setbacks. The month-long celebration will include virtual live events featuring local female leaders, with special promos and raffle prizes up for grabs. Following the success of its 2020 run, #GRLPWR: Make It Happen presented Leaders in Heels, an online event, which broadcasted on March 5 at Rustan’s The Beauty Source’ Facebook Page, featured writer and student Nikki Huang; director, entrepreneur, and content creator Janina Manipol; multimedia host and PAWS advocate Joey Mead-King; and journalist, CNN Philippines senior anchor and correspondent Pinky Webb. Next up is Girl Talk with The Beauty Edit’s Nicole Limos on March 12, 4 p.m., via the @RustansTheBeautySource and @TheBeautyEdit.PH Instagram Accounts. She will host the Girl Talk Live together with Jam Avelino, Education Manager of Rustan’s The Beauty Source. Meanwhile, gifts and discounts are being given throughout March and April to loyal customers. Offers are applicable via in-store purchase at any Rustan’s The Beauty Source, through its online site at Rustans.com, or via the Personal Shopper On Call service which now has one universal number — 0917-111-1952. #GRLPWR’s exclusive offers that are valid from March 6 to 15 from brands like Murad, Jo Malone, Perricone, Neal’s Yard Remedies, Giorgio Armani, Maison Francis Kurkdjian, Phyto, Jane Iredale, Mario Badescu,and Laura Mercier. There will be discounts of up to 50% on select Beauty and Fashion brands. Beauty Addict members can earn x5 Beauty Addict points when they shop at Rustan’s The Beauty Source from March 6-15. Every purchase worth P2,500 gets the customer one e-raffle coupon to qualify for the #GRLPWR Raffle Promo where prizes include a Nespresso Inissia Gift Set in Black (3rd prize); Rustan’s The Beauty Source Beauty Exclusive Beauty Kit worth P15,000 (2nd prize); and a P30,000 Shopping Spree at Rustans The Beauty Source (grand prize). The raffle promo is applicable in stores, Rustans.com, and Personal Shopper On Call from March 16 to April 15.

Chris Hemsworth is the new face of BOSS

Actor Chris Hemsworth takes the spotlight as the international face of BOSS, with a new campaign for Spring/Summer 2021. As the brand’s first global ambassador, the Hollywood actor will front fashion campaigns in 2021 and into 2022. Aside from being an actor, Hemsworth is a dedicated environmentalist, and strategically leverages his popularity to draw attention to climate change and species protection. With the appointment of Hemsworth – a passionate surfer who epitomizes a well-balanced lifestyle – HUGO BOSS is taking another step in its casualization process of the BOSS brand. He represents a new vision for the BOSS man, one that redefines what it means to be successful. Lensed by Australian photographer Georges Antoni, the campaign captures the actor in casualwear and eased-up tailoring from the new Spring/Summer 2021 collection, reflecting his easy going character and natural sense of style.

Greater than normal palay weakness expected if global rice prices decline

RICE TRADERS are expected to depress their offer prices for palay, or unmilled rice, to give themselves a margin of safety should the international price of rice fall, threatening to flood the Philippine market with cheap imports, a farming organization said.

Federation of Free Farmers National Manager Raul Q. Montemayor said the buying price of palay, the form in which farmers sell their crop, could be purchased at “lower than normal prices to play safe” should traders come to believe that “international prices will eventually go down and cheap imports might surge again.”

Currently, Mr. Montemayor said in a mobile phone message, high international rice prices are keeping import volume down.

“I would have expected imports to be much larger but I think the high international price is discouraging imports,” Mr. Montemayor said.

“Most importers will wait and see for the meantime. Importers will bring in mostly premium grade rice that they can sell at a high price to well-off consumers to maintain their margins,” he added.

Import values, as reflected in rice tariff collections, are signaling higher international rice prices on a year-on-year comparison. The Department of Finance said in a statement Friday that the average value of rice imports in January rose 11.5% year on year to P20,262 per metric ton (MT). As a result, tariffs from rice imports collected by the Bureau of Customs (BoC) rose 58% to P2.04 billion in January.

Preliminary data from the BoC also indicated that volumes imported in January rose to 287,957 MT, up 29% from a year earlier.

In 2020, the BoC announced the collection of P15.494 billion from imports of 2.38 million MT, down 24% from collections in 2019, the first year of implementation of Republic Act No. 11203 or the Rice Tariffication Law. — Revin Mikhael D. Ochave

How PSEi member stocks performed — March 5, 2021

Here’s a quick glance at how PSEi stocks fared on Friday, March 5, 2021.

Philippines slips in Tholons 2021 ranking of ‘Digital Nations’

THE Philippines dropped out of the top 10 in a list of countries that are considered attractive destinations for technology, digital and innovation, and business process management, after seeing a decline in the workforce population amid the pandemic. Read the full story.

Philippines slips in Tholons 2021 ranking of ‘Digital Nations’

Peso to drop vs dollar on import bets

THE PESO is likely to weaken against the greenback this week as the market waits for more vaccines to arrive in the country, which could signal a wider economic reopening and bring in more imports.

The local unit finished trading at P48.56 per dollar on Friday, appreciating by six centavos from its Thursday close of P48.62 against the greenback.

Week on week, it also gained three centavos from its P48.59-per-dollar finish on Feb. 26.

The peso’s appreciation versus the dollar on Friday followed the close of the  government’s retail Treasury bond (RTB) sale, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.

The Bureau of the Treasury raised P463.3 billion through its offering of three-year RTBs. This is the second-biggest issuance next to the record P516.3 billion in five-year RTBs it issued in 2020.

Meanwhile, a trader attributed the peso’s movement versus the dollar last week to developments in the US financial market.

“The local currency was little changed last week after Federal Reserve Chairman Jerome Powell said he is monitoring financial conditions and would be “concerned” by disorderly markets, but stopped short of offering specific steps,” the trader said in a Viber message.

Mr. Powell said in a Wall Street Journal forum that they remain committed to maintaining ultra-easy monetary policy until the economy is “very far along the road to recovery.”

The trader added that the peso’s P48.56 close on Friday “signals the rising dollar theme is gaining traction.”

For this week, Mr. Ricafort said the market will be tracking the arrival of more coronavirus disease 2019 (COVID-19) vaccines in the country.

“More COVID-19 vaccine arrivals and rollouts would increase the likelihood of a nationwide moderate general community quarantine sooner, thereby improving market sentiment and the overall economic recovery prospects,” Mr. Ricafort said.

Mr. Ricafort gave a forecast range of P48.45 to P48.75 per dollar while the trader expects the local unit to move within the P48.50 to P48.70 levels. — L.W.T. Noble

PSEi likely to move sideways amid mixed leads

STOCKS are expected to react to developments in the country’s coronavirus disease (COVID-19) situation this week, with more cases of people infected with different virus variants being reported in the past few days.

The benchmark Philippine Stock Exchange index (PSEi) went down by 1.12 points or 0.01% to finish at 6,881.37 on Friday.

Week on week, however, it went up by 86.51 points from its 6,794.86 finish on Feb. 26.

“The index was up 1.3% [last] week, snapping three straight weeks of losses as sentiment improved following the start of the country’s vaccination drive,” AB Capital Securities, Inc. Junior Equity Analyst Lance U. Soledad said in a Viber message on Friday.

The Philippines started its COVID-19 inoculation on Monday after receiving the first batch of CoronaVac vaccines from Chinese pharmaceutical Sinovac Biotech Ltd. on Sunday, Feb. 28. Over 487,000 doses of the AstraZeneca vaccine from the World Health Organization’s COVAX program also arrived in the country on Thursday, March 4.

“It managed well despite pressures from a corrective US market and inflationary threats,” COL Financial Group, Inc. Chief Technical Analyst Juanis G. Barredo said in a separate Viber message on Friday.

“For [this] week, eyes will remain on the US market and see if it can rally or roll down further. A rise in US bond yields have been the thorn on its side and whose concerns have reverberated worldwide,” Mr. Barredo said.

“Philippine bond yields have also picked up, soaring to around 4% from 3% into the onset of 2021. This was likely due to the rise of inflation, which threatens the possible rise in rates. Such headwinds may keep the market in consolidation bounds for the meantime,” he added.

Consumer prices rose faster for a fifth straight month to a 26-month high in February as food prices continued to surge, the Philippine Statistics Authority (PSA) reported on Friday.

Preliminary data from the PSA showed headline inflation at 4.7% last month, picking up from 4.2% in Jan. 2021 and 2.6% in Feb. 2020.

The February inflation result marked the fastest pace since the 5.1% in Dec. 2018.

The latest headline figure is a tad lower than the 4.8% median in a BusinessWorld poll but falls within the 4.3%-5.1% estimate given by the Bangko Sentral ng Pilipinas (BSP) for February.

Year to date, February inflation settled at 4.5%, beyond the BSP’s 2-4% target for the year.

COL Financial’s Mr. Barredo expects the market to close between 6,600 to 7,400 this week, while AB Capital Securities’ Mr. Soledad sees the index closing from 6,750 to 7,000 as “investors digest a slew of negative and positive news.”

“Faster inflation, increasing cases of the UK and South African COVID-19 variant, and the rising positivity rate might [weigh] on sentiment. On a positive note, vaccine doses continue to arrive in the country, which can accelerate the rollout,” Mr. Soledad added. — Keren Concepcion G. Valmonte

FIST oversight panel wary of incentives abuse

THE TWO chambers of the legislature will form a Joint Congressional Oversight Committee (JCOC) to monitor the implementation of the Financial Institutions Strategic Transfer (FIST) Law, with its co-chairs saying that the panel will ensure that FIST incentives are not abused by parties availing of its tax-light asset-transfer rules.

“(The JCOC) will particularly ensure that the provisions on the FIST corporation applications and plans, transfer of assets, and availment of incentives and privileges are followed,” Senator Grace S. Poe-Llamanzares, who chairs the Committee on Banks, Financial Institutions and Currencies, said in a text message.

Ms. Poe-Llamanzares will co-chair the joint committee along with her House counterpart alongside Quirino Representative Junie E. Cua, who heads the House Committee on Banks and Financial Intermediaries.

The JCOC is authorized by Section 27 of the FIST Law, which went into the books as Republic Act No. 15523 after it was signed in February.

The law facilitates the transfer of non-performing loans and their underlying collateral assets to FIST corporations, which are known as FISTCs under the law. Unburdened by bad assets, banks are thus expected to resume their focus on lending growth to help the economy recover. The FISTCs will then specialize in managing the transferred assets, disposing of them or restructuring as necessary. They will also be allowed to sell shares to large investors to raise capital and allow investors to benefit from any returns generated.

“There should be a periodic evaluation of the incentives provided in Sections 15-17 as this is the portion of the law that can be abused,” Mr. Cua said in a text message.

The FIST Law allows financial institutions to sell their non-performing assets to FISTCs. The transfer rules apply to assets that become non-performing until Dec. 31, 2022.

The law provides for tax exemptions and fee privileges for transactions related to the transfer of non-performing assets from banks to FISTCs. These exemptions include documentary stamp tax, capital gains tax imposed on land transfers, value-added tax and creditable withholding tax in relation to the transfer of the assets.

It also gives additional tax exemptions and fee privileges for FIST corporations by excluding them from income tax on net interest income and documentary stamp tax.

“There should be a careful analysis of the transfer of assets from the financial institution to a FISTC and to a third party to ensure that there is no circumvention of the law,” Mr. Cua said.

“Ultimately, the Oversight Committee will ensure that all of the parties’ rights are respected,” Ms. Poe said.

The Bangko Sentral ng Pilipinas estimated the industry’s bad loan ratio at 3.7% in January, against 3.61% in December and 2.16% a year earlier.

In January, non-performing loan volume rose 0.15% month on month to P392.256 billion and rose 67% year on year. — Luz Wendy T. Noble

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